Kenya Equities Market Update – 5th October 2025

Market Performance

During the week, the equities market maintained an upward trajectory, with all key indices posting gains. The NSE 20 rose the most by 1.8%, while the NSE 25, NASI, and NSE 10 gained 0.7%, 0.3%, and 0.1%, respectively. This took the year-to-date (YTD) performance to gains of 47.2% (NSE 20), 42.4% (NASI), 35.0% (NSE 25), and 34.9% (NSE 10).

The positive momentum was primarily driven by gains among large-cap counters such as Stanbic Bank (+7.8%), Absa (+7.0%), and NCBA (+2.5%). However, the overall performance was partly offset by declines in Co-operative Bank (-2.1%), Safaricom (-1.7%), and EABL (-0.9%).

Market activity declined sharply during the week, with equities turnover falling by 62.2% to USD 16.2 million, down from USD 43.0 million recorded the previous week. This brought the YTD total turnover to USD 795.1 million.

Foreign investor participation shifted positively, with net buying of USD 0.9 million, reversing a four-week streak of net selling. The YTD foreign net selling position now stands at USD 54.4 million, an improvement from the USD 55.3 million recorded previously.

Weekly Highlight

1. Nairobi Securities Exchange (NSE) Launches Banking Sector Index

During the week, the Nairobi Securities Exchange Plc (NSE) officially launched the NSE Banking Sector Share Index (NSE BSI) on 1st October 2025.

The new index aims to track the performance of all listed commercial banks in Kenya, offering investors a transparent and standardized benchmark to assess the banking sector’s performance. The NSE BSI will also serve as a foundation for structured products, investment funds, and derivative instruments.

The index’s governance framework includes detailed rules on constituent eligibility, weighting, periodic rebalancing, and oversight, reinforcing NSE’s commitment to enhancing market depth and transparency in Kenya’s capital markets.

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