Kenya Equities Market Update – 26th December 2025

Market Performance

During the week, the equities market recorded mixed performance, reflecting selective investor positioning and lower participation levels. The NSE 20 and NSE 10 indices gained marginally by 0.3% and 0.1%, respectively, while NASI and NSE 25 declined by 0.3% each.

As a result, year-to-date (YTD) performance remained firmly positive, with gains of:

• 50.6% – NSE 20
• 46.8% – NASI
• 45.5% – NSE 10
• 45.0% – NSE 25

Market performance was largely supported by gains in select banking stocks, notably:

• Equity Group (+5.2%)
• Absa Bank (+4.1%)
• Cooperative Bank (+1.9%)

These gains helped cushion broader market weakness but were offset by notable declines in large-cap counters, particularly:

• EABL (-7.2%)
• NCBA (-6.7%)
• Safaricom (-0.9%)

The pullback in these stocks weighed on the headline indices, underscoring continued sector rotation and stock-specific risk.

Market Activity & Foreign Investor Flows

Equities market activity declined sharply, with total turnover falling by 80.4% to USD 11.8 million, down from USD 60.2 million the previous week. This brought year-to-date turnover to USD 1.11 billion, highlighting the contrast between strong index performance and weakening liquidity toward year-end.

Foreign investors turned net sellers for the first time in three weeks, posting a net selling position of USD 0.5 million, compared to net buying of USD 0.9 million in the previous week. Consequently, YTD foreign net selling stood at USD 93.0 million, a significant increase from the USD 16.9 million net selling position recorded in 2024.

Market Takeaway

Overall, the week was characterized by thin trading volumes, mixed index performance, and renewed foreign outflows. While banking stocks provided localized support, profit-taking in select large-cap counters and subdued participation weighed on overall sentiment. Going forward, market direction is likely to remain stock-specific, with investors closely monitoring earnings visibility, foreign flow dynamics, and macro-liquidity conditions.