Kenya Equities Market Update – 17th October 2025

Market Performance

The Kenyan equities market posted a positive performance during the week, with all major indices closing in the green, supported by gains in key banking and telecom counters.

The NASI, NSE 25, NSE 20, and NSE 10 rose by 2.2%, 2.1%, 1.4%, and 0.6%, respectively, taking the year-to-date (YTD) gains to 45.0%, 40.7%, 35.4%, and 33.2% for the NSE 20, NASI, NSE 25, and NSE 10, respectively.

The market’s positive momentum was largely driven by gains in large-cap stocks, including:

• NCBA Bank (+20.7%), following improved investor sentiment around banking sector performance and dividend prospects.
• Standard Chartered Bank (+3.7%), buoyed by foreign investor demand.
• Safaricom (+3.1%), which continued to attract interest on expectations of improved data and M-Pesa earnings.

However, the rally was slightly tempered by losses in EABL (-2.1%) and Co-operative Bank (-0.3%), which experienced mild profit-taking pressure after recent gains.

Market Activity

Equity turnover declined by 15.4% to USD 11.4 million, down from USD 13.4 million the previous week, reflecting a slowdown in trading activity amid selective foreign participation.

Foreign investors remained net sellers for the second consecutive week, registering net outflows of USD 0.5 million, compared to USD 0.7 million in the previous week. This brings the year-to-date (YTD) net foreign outflows to USD 55.6 million, highlighting persistent foreign risk aversion despite strong local investor support.

Market Outlook

The sustained uptrend across indices reflects renewed domestic investor confidence, supported by moderating inflation, a stable currency, and improving corporate earnings outlook for FY’2025. The banking sector continues to anchor market momentum, while strategic investors are taking long positions on undervalued blue-chip counters.

Going forward, market direction will likely be influenced by Q3 earnings releases, monetary policy dynamics, and foreign investor positioning amid easing global rate expectations.

Sources: Nairobi Securities Exchange (NSE), Central Bank of Kenya (CBK)