Kenya Equities Market Update – 29 August 2025

Market Performance

The equities market closed the week on a positive trajectory, with broad-based gains across major indices. The NSE 20 led the rally, gaining 3.2%, while the NASI, NSE 25, and NSE 10 rose by 1.5%, 1.4%, and 1.4%, respectively. This brought the year-to-date (YTD) performance to:

• NSE 20: +38.2%
• NASI: +37.7%
• NSE 10: +28.8%
• NSE 25: +28.5%

The rally was supported by strong performance among large-cap counters, particularly NCBA Bank (+3.2%), Co-operative Bank (+2.6%), and DTB-K Bank (+2.3%). However, the upside was partially offset by declines in BAT (-3.1%) and Stanbic Bank (-0.7%).

Market turnover increased by 7.2% to USD 24.4 million, up from USD 22.8 million the previous week, taking YTD turnover to USD 604.1 million. Foreign investors maintained their net buying position for the fifth consecutive week, with inflows of USD 3.5 million, up from USD 2.1 million in the previous week. This narrowed the YTD net foreign outflows to USD 18.8 million, compared to USD 16.9 million over the same period in 2024.

Corporate Earnings Highlights

NCBA Group – H1’2025 Results

• Increased Earnings: Core EPS rose by 12.6% to Kshs 6.7 (H1’2024: Kshs 6.0), driven by a 12.7% increase in total operating income to Kshs 35.3 billion, outpacing the 13.5% increase in total operating expenses to Kshs 21.8 billion.
• Improved Asset Quality: Gross NPL ratio eased to 12.18% (H1’2024: 12.24%) due to a 6.3% contraction in gross loans, outpacing a 6.8% decline in non-performing loans.
• Decreased Lending: The loan book contracted by 7.0% to Kshs 288.1 billion, reflecting heightened credit risk aversion.
• Contracted Balance Sheet: Total assets fell 3.8% to Kshs 663.0 billion (H1’2024: Kshs 689.1 billion).
• Dividends: Interim dividend increased by 11.1% to Kshs 2.50 per share, translating to a 9.3% annualized yield and a 37.3% payout ratio.

HF Group – H1’2025 Results

• Improved Profitability: Profit after tax surged by 134.5% to Kshs 0.6 billion, supported by 53.3% growth in net interest income and 17.9% growth in non-interest income.
• Core EPS: Declined by 52.2% to Kshs 0.7, impacted by dilution from the Kshs 6.0 billion rights issue in 2024.
• Asset Quality: Marginal improvement as Gross NPL ratio fell to 24.0% (H1’2024: 24.2%).
• Balance Sheet Expansion: Total assets grew 20.7% to Kshs 76.9 billion, driven by a 96.0% increase in government securities holdings.
• Lending Growth: Net loans and advances increased by 2.7% to Kshs 38.9 billion.

Britam Holdings – H1’2025 Results

• Declining Profitability: Profit after tax fell by 20.7% to Kshs 1.7 billion, weighed down by a 39.4% drop in net insurance income and a 29.7% rise in net insurance and finance expenses.
• Core EPS: Dropped 15.0% to Kshs 0.7.
• Net Investment Income: Increased 30.2% to Kshs 17.3 billion, driven by strong growth in interest, dividends, and property income.
• Balance Sheet: Expanded 19.2% to Kshs 225.0 billion, driven by a 23.3% increase in investment assets.
• Dividends: No interim dividend declared for the sixth consecutive year.

CIC Group – H1’2025 Results

• Profitability Decline: Profit after tax decreased by 10.1% to Kshs 0.6 billion, mainly due to an 87.7% drop in net insurance income.
• Core EPS: Fell 23.3% to Kshs 0.2.
• Investments: Net investment income surged 127.0% to Kshs 1.5 billion, partially offsetting weak insurance income.
• Balance Sheet: Expanded 21.4% to Kshs 70.1 billion, driven by a 25.6% rise in financial investments.
• Dividends: No interim dividend declared for H1’2025.

Jubilee Holdings – H1’2025 Results

• Earnings Growth: Profit after tax increased 21.7% to Kshs 3.1 billion, supported by a 32.6% rise in insurance revenues.
• Core EPS: Grew 20.4% to Kshs 41.6.
• Balance Sheet: Expanded 12.7% to Kshs 228.4 billion, driven by a 13.8% increase in investment assets.
• Dividends: No interim dividend declared for H1’2025.

Kenya Re – H1’2025 Results

• Strong Profit Growth: Profit after tax surged 49.5% to Kshs 1.6 billion, driven by a sharp 18.2% drop in insurance service expenses.
• Core EPS: Declined 26.3% to Kshs 0.3, reflecting share dilution following a bonus issue.
• Investments: Net investment revenue rose 51.2% to Kshs 2.7 billion.
• Balance Sheet: Total assets increased 4.9% to Kshs 68.9 billion, while liabilities rose 1.2% to Kshs 17.0 billion.
• Dividends: No interim dividend declared.

Market Outlook

The equities market maintained its bullish momentum, supported by foreign inflows and strong corporate earnings among key banking and insurance counters. With global and domestic macroeconomic conditions stabilizing, foreign investor participation is expected to continue supporting market liquidity and valuations in the near term.