In addition, high performance infrastructure is a key requirement to have this kind of trading.
Extremely fast computers, optical speed & bandwidth and extremely low latencies are required.

However I still think that keeping it banned is more reasonable for the kind of society and market that we have.

...defenders of the practice of short selling see it as a necessary and desirable feature of the market that plays an important role in providing liquidity and accelerating price corrections.Some believe that short sellers tend to stabilise prices in a declining market by covering their short sale positions often opened at the start of a downturn on the other hand critics argue that it increases share price volatility,exaggerates share price declines and forces the price of individual stocks down to levels that might not otherwise be reached...in extreme cases,short selling may depress the price of a security so much that it could create problems for the company in question,either by undermining commercial confidence or making fundraising more difficult...

As said before our market needs to evolve more,the right infrastructure put in place,internet execution brokers,multilateral trading facilities etc to start benefitting from some of this trading platforms...margin trading is to risky especially with the kind of companies we have listed on the NSE,profits flactuate a lot,i know it can be a double edged sword but who is ready to loose everything,i dont think any broker would be willing to lend money to a margin trader,kwanza the profits they make are already minimal...mtapatia CMA lots of work to do...not nice,2030 maybe

What financial products can we as Kenya develop to fit our current and future markets?

I agree.We need to up our game when it comes to online trading and the likes.

We need margin trading.At times forex appeals more to me because I can better leverage my money. How do you see futures working in Kenya?I ask this because contracts obligations are not really upheld or respected as they should. Commodities can help especially with planning and hopefully control inflation to an extent. Also what about other derivaties?I think risk mitigation and management options are also lacking.

..My biggest problem with the CMA and NSE is that there is so little investor education going around so many people would have been buying fixed income securities if they just knew how the market works but they dont...they need to up their game on this we should be way far than where we are at the moment.