Kenya’s equity markets opened the new year with solid gains, signaling renewed investor confidence.
Prices rose 1.8%, driven largely by the top 10 most liquid counters, which advanced 2.3%. The NSE 25 and NSE 20 indices also posted gains of 2.1% and 1.3% respectively.
The banking sector led the rally, climbing 2.6% on early investor positioning ahead of the March earnings season.
Market Activity
Despite the upbeat start, overall market activity was subdued:
- Turnover fell 25.2% to KES 1.07Bn from KES 1.43Bn, reflecting the extended festive period.
- Volumes traded rose 9.5% to 47.74Mn shares, boosted by a 164.6% surge in Kenya Re’s trades to 14.01Mn shares.
Foreign Investor Participation
Foreign investors reduced their presence, with participation dropping to 16.4% from 28.9% the prior week. However, the market recorded a net foreign inflow of KES 6.99Mn, reversing the previous week’s KES 63.22Mn outflow.
| Net Inflows | Net Outflows |
|---|---|
| Safaricom | Equity Group |
| TPS Eastern Africa | Absa Gold |
Sector Concentration
Investor activity was concentrated in three sectors:
- Banking
- Telecommunications
- Insurance
Together, they accounted for 86.8% of turnover and 76.2% of traded shares.
Top Movers
| Company | Turnover (KES Mn) | Volume (Mn shares) | Price Change | Closing Price |
|---|---|---|---|---|
| Safaricom | 362.96 | 12.94 | +1.97% | 28.50 |
| Jubilee Holdings | 133.37 | 0.40 | -2.20% | 322.50 |
| Equity Group | 128.77 | 1.94 | +1.90% | 67.00 |
Weekly Gainers
| Company | % Change | Closing Price (KES) |
|---|---|---|
| Uchumi | +43.0% | 1.13 |
| Standard Group | +18.8% | 6.58 |
| Home Africa | +14.3% | 1.36 |
Indices Performance
All major indices advanced during the week:
| Index | Weekly Gain | YTD Gain |
|---|---|---|
| NSE 20 | +3.0% | +3.0% |
| NSE 25 | +2.5% | +2.5% |
| NSE 10 | +2.4% | +2.4% |
| NASI | +2.4% | +2.4% |
Large caps such as Cooperative Bank (+8.6%), NCBA (+4.7%), and Equity (+3.7%) drove the rally, while EABL (-4.4%) weighed on performance.
Turnover & Valuations
- Weekly equities turnover surged 230.7% to USD 27.1Mn.
- Foreign investors remained net buyers for the second week, with inflows of USD 0.5Mn.
- The market trades at a P/E ratio of 7.7x, well below the historical average of 11.3x.
- Dividend yield stands at 5.2%, above the long‑term average of 4.7%.
- NASI’s PEG ratio of 1.0x suggests the market is fairly valued relative to growth prospects.
Looking Back at 2025
Kenya’s equities market had a stellar 2025, with all major indices posting double‑digit gains.
| Index | 2025 Performance |
|---|---|
| NSE 20 | +52.5% |
| NASI | +48.9% |
| NSE 10 | +48.0% |
| NSE 25 | +47.4% |
Large‑Cap Stock Performance in 2025
| Company | 2025 Gain |
|---|---|
| DTBK | +71.5% |
| Safaricom | +64.8% |
| NCBA | +64.7% |
| KCB | +55.1% |
| EABL | +49.9% |
| Stanbic | +41.5% |
| Equity | +39.1% |
| Coop Bank | +37.2% |
| Absa | +31.0% |
| BAT | +22.0% |
| SCBK | +4.2% |
| Bamburi | -1.8% |
Turnover for the year rose 40.6% to USD 1.1Bn, though foreign investors remained net sellers with USD 92.9Mn outflows.
The Kenyan equities market has entered 2026 with strong momentum, supported by banking sector gains and renewed foreign inflows. Attractive valuations and healthy dividend yields suggest room for further upside, though investor sentiment will hinge on earnings season in Mach.
