Kenya Equities Market Update – Week Ending 27th June 2025

Kenya’s equities market sustained its upward momentum during the week, with all major indices posting strong gains:

• NSE 20 led with a +5.3% weekly increase.
• NASI, NSE 10, and NSE 25 rose by 4.6%, 4.1%, and 4.0%, respectively.

This pushed the year-to-date (YTD) returns to impressive levels:

• NASI: +21.6%
• NSE 20: +16.4%
• NSE 10: +13.6%
• NSE 25: +13.1%

Key Drivers:
The rally was fueled by solid price gains in large-cap stocks, with:

• KCB up 6.7%
• Equity Group gaining 5.9%
• NCBA up 4.9%

However, market activity slowed:

• Turnover fell by 32.6% to USD 12.9 million from USD 19.1 million the prior week.
• Despite lower volumes, foreign investors remained net buyers for the third consecutive week, with a net buying position of USD 0.9 million.
• Cumulatively, foreign investors have reduced their net selling position to USD 27.0 million YTD, compared to USD 16.9 million in 2024.

Corporate Actions & Regulatory Highlights:

• Equity Bank placed TransCentury Plc and East African Cables under receivership to recover debts totaling Kshs 4.7 billion, following the lapse of a 90-day court injunction.
• In response, the Capital Markets Authority (CMA) suspended trading of the two firms on the Nairobi Securities Exchange (NSE), bringing the number of suspended companies to six (out of 63 listed).
• These developments highlight the financial distress facing several Kenyan firms, driven by excessive debt, tight credit conditions, and a tough business environment.
• The rising number of suspensions underscores growing concerns over corporate governance, regulatory oversight, and the urgent need for structural reforms to restore market confidence and attract new listings amid a prolonged IPO drought.