Kenya Equities Market Update – 26th September 2025

Market Performance

The Kenyan equities market closed the week on a positive note, maintaining upward momentum across all indices. The NSE 10 led the rally, gaining 3.7%, while the NSE 25, NSE 20, and NASI posted gains of 3.0%, 2.6%, and 2.5%, respectively. This performance lifted the year-to-date (YTD) returns to 44.7% (NSE 20), 41.9% (NASI), 34.7% (NSE 10), and 34.0% (NSE 25), underscoring the resilience of the equity market amid fluctuating investor sentiment.

The market rally was largely driven by strong performance in the banking sector, with Co-operative Bank rising by 10.4%, Equity Bank by 7.4%, and KCB by 6.0%. These gains reflect continued investor confidence in banking stocks, which remain a cornerstone of market capitalization and liquidity at the NSE.

Trading Activity

Market turnover increased slightly, rising 4.1% to USD 43.0 mn, compared to USD 41.3 mn recorded the previous week. This brought the YTD total equity turnover to USD 778.8 mn, a steady accumulation supported by both local institutional investors and selective foreign participation.

Despite the positive market performance, foreign investors remained net sellers for the fourth consecutive week. The net outflow stood at USD 0.3 mn, significantly lower than the USD 22.9 mn recorded the previous week. Year-to-date, foreign investors have recorded a cumulative net selling position of USD 55.3 mn, compared to a net selling position of USD 16.9 mn over a similar period in 2024. This trend signals cautious foreign sentiment, likely driven by global risk factors and shifting emerging market allocations.

Outlook

The equities market continues to benefit from robust domestic investor participation, particularly in banking stocks, which have shown resilience and earnings growth. However, persistent net foreign outflows remain a key risk factor, potentially tempering market momentum in the near term.

Looking ahead, investor focus is expected to remain on Q3 corporate earnings announcements, macroeconomic indicators, and global market dynamics, which could influence foreign portfolio flows. For long-term investors, the strong YTD gains in NSE indices reflect a solid recovery trajectory, positioning the market as a compelling avenue for growth-oriented investment strategies.

KenyaEquities #NSE #InvestmentInsights #StockMarketKenya #BankingSector #EquityMarketUpdate #KenyaInvestments #FinancialMarkets