Kenya’s equities market recorded a positive performance during the week ending 13th March 2026, with all major indices closing in the green as investor sentiment improved. The recovery reflects renewed demand in selected large-cap counters, particularly within the banking and consumer sectors, alongside improved market activity levels.

Despite the gains, the market continues to face headwinds from sustained foreign investor outflows, highlighting a divergence between domestic investor confidence and external participation trends.

Market Performance

The equities market was on an upward trajectory during the week, with the NSE 20, NSE 10, NSE 25, and NASI indices gaining by 2.4%, 2.3%, 2.1% and 1.4% respectively. This brings the year-to-date performance to gains of 17.5%, 14.9%, 13.9% and 12.8%, respectively.

The upward movement was primarily supported by gains in large-cap stocks, notably East African Breweries Limited (EABL), British American Tobacco (BAT), and Equity Group, which advanced by 5.2%, 4.3% and 3.4% respectively.

However, the gains were partially offset by declines in select banking counters, including Standard Chartered Bank Kenya and Co-operative Bank, which recorded losses of 1.5% and 0.2%, respectively.

Overall, the week’s performance reflects selective investor positioning, with capital rotating into fundamentally strong counters while profit-taking persists in others.

Banking Sector Performance

The banking sector recorded a moderate recovery during the week, with the banking sector index rising by 1.6% to 242.2 from 238.3 recorded in the previous week.

The gains were driven by positive performance in key banking stocks, particularly:

• Equity Group (+3.4%)
• Absa Bank Kenya (+3.0%)
• KCB Group (+2.3%)

These gains reflect continued investor confidence in the banking sector, supported by improving asset quality, stable earnings outlooks, and balance sheet expansion across major lenders.

However, the sector’s performance was weighed down by declines in Standard Chartered Bank and Co-operative Bank, highlighting mixed sentiment within the sector.

Market Activity and Foreign Investor Flows

Market activity improved during the week, with equities turnover increasing by 22.6% to USD 48.3 mn, from USD 39.4 mn recorded the previous week.

The increase in turnover indicates renewed participation in the market, particularly in large-cap stocks, which continue to dominate trading activity.

Despite the improvement in activity, foreign investors remained net sellers for the sixth consecutive week, recording net outflows of USD 20.1 mn, up from USD 4.3 mn recorded the previous week.

The sustained foreign outflows highlight continued caution among international investors, likely driven by global risk sentiment and emerging market positioning, even as domestic fundamentals remain relatively stable.

Weekly Highlights

1. KCB Bank Kenya – FY’2025 Financial Performance

KCB Group reported a strong performance for FY’2025, underpinned by earnings growth, improved asset quality, and balance sheet expansion.

Core earnings per share (EPS) increased by 11.2% to Kshs 20.8, supported by a 4.3% increase in total operating income and stable operating costs.

Asset quality improved significantly, with the gross NPL ratio declining to 16.2% from 19.8%, driven by a reduction in non-performing loans alongside strong growth in the loan book.

The balance sheet expanded, with total assets rising by 9.4% to Kshs 2.1 tn, supported by a 16.3% increase in net loans and advances.

Overall, the results reflect continued operational resilience and improving credit risk conditions within the banking sector.

2. Stanbic Bank – FY’2025 Financial Performance

Stanbic Bank reported a relatively stable earnings performance, with EPS remaining broadly unchanged at Kshs 34.7, supported by cost efficiencies.

Operating expenses declined by 5.7%, offsetting modest movements in operating income.

Asset quality improved, with the NPL ratio declining to 8.1%, reflecting stronger credit performance relative to prior periods.

The balance sheet expanded significantly, with total assets increasing by 19.0%, driven by growth in both loans and government securities holdings.

The results highlight a stable earnings profile, supported by disciplined cost management and improved credit quality.

3. Liberty Kenya Holdings – FY’2025 Performance

Liberty Kenya reported a weak performance for FY’2025, with profit after tax declining by 51.9% to Kshs 0.7 bn.

The decline was primarily driven by a 55.1% drop in insurance service revenue and a 23.0% decrease in investment income, reflecting pressure on both core insurance operations and investment returns.

Earnings per share declined significantly, while the balance sheet contracted modestly, highlighting a challenging operating environment for the insurance sector.

The company also reduced its dividend payout, reflecting weaker profitability and the need to preserve capital.

4. Proposed Acquisition of Nation Media Group

During the week, Nation Media Group (NMG) announced a proposed indirect acquisition of a 54.1% controlling stake by Taarifa Ltd through NPRT Holdings Africa Limited.

The transaction represents a change in shareholder control rather than operational restructuring, with NMG expected to maintain its existing governance structures, management team, and multi-exchange listing.

The development is significant for the East African media sector, as it introduces new strategic ownership while preserving market stability and investor confidence.

5. Centum’s Exit from Sidian Bank

Centum Investment Company completed the sale of its remaining stake in Bakki Holdco Limited, effectively exiting its indirect investment in Sidian Bank.

The transaction marks the conclusion of a multi-year divestment strategy and aligns with Centum’s broader objective of:

• Enhancing liquidity
• Reallocating capital
• Focusing on higher-growth investment opportunities

The exit strengthens Centum’s balance sheet and positions the company for strategic redeployment of capital into sectors aligned with its long-term growth strategy.

Overall Assessment

The equities market continues to demonstrate resilience, supported by:

• Strong performance in select large-cap stocks
• Positive momentum within the banking sector
• Improved market activity levels

However, several underlying trends remain key:

• Sustained foreign investor outflows
• Selective sectoral performance rather than broad-based gains
• Divergence in corporate earnings across sectors

In the near term, the market is expected to remain supported by strong domestic participation and improving corporate fundamentals, particularly within the banking sector.

However, external factors—including foreign investor sentiment and global market conditions—will continue to influence overall market direction.