Kenya Equities Market Update – 24th October 2025

Market Performance

The equities market remained on an upward trajectory during the week, with all major indices posting gains. The NSE 25, NSE 10, NASI, and NSE 20 rose by 2.4%, 2.1%, 1.9%, and 1.9%, respectively, continuing the positive sentiment across key sectors. Year-to-date (YTD), the indices have recorded strong double-digit growth, with gains of 47.7%, 43.5%, 38.6%, and 36.0% for the NSE 20, NASI, NSE 25, and NSE 10, respectively.

The week’s performance was largely driven by price gains in major counters such as NCBA (+9.3%), EABL (+4.6%), and BAT (+4.0%), which benefited from renewed investor interest following stronger earnings expectations and sector resilience. On the downside, Stanbic recorded a marginal decline of 0.4%, slightly offsetting the overall upward momentum.

Banking Sector Index

The NSE Banking Sector Index registered a mild decline of 2.3%, closing at 157.9, down from 161.6 the previous week. The dip was primarily due to weakness in Stanbic (-0.4%), which outweighed gains recorded by other large-cap banking stocks including NCBA (+9.3%), Absa (+2.3%), and KCB (+2.2%).
Despite this, the sector remains a key driver of the broader market’s YTD performance, buoyed by solid profitability, asset growth, and dividend appeal.

Market Activity

Trading activity rose sharply, with equities turnover increasing by 184.0% to USD 32.2 million, compared to USD 11.4 million in the prior week. This uptick was supported by increased foreign investor participation and portfolio rebalancing among local institutional investors.
However, foreign investors remained net sellers for the third consecutive week, with outflows of USD 12.7 million, up from USD 0.5 million recorded the previous week, bringing the year-to-date foreign net selling position to USD 68.6 million.

The elevated turnover alongside sustained foreign exits suggests profit-taking activity on select high-performing counters, even as local demand continues to underpin market liquidity and depth.

Outlook

The equities market continues to exhibit resilience, underpinned by strong corporate earnings, stable macroeconomic fundamentals, and renewed investor appetite for value stocks. The recent Central Bank rate cut to 9.25% is also expected to provide mild support to equities through lower borrowing costs and improved private sector liquidity.
In the coming weeks, investor focus is likely to remain on upcoming Q4 2025 earnings announcements and developments within the banking and consumer sectors, which continue to shape the broader market sentiment.

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