Kenya Equities Market Update – 8th August 2025

Market Performance

The equities market extended its upward momentum, with all major indices posting weekly gains:

• NSE 25: +1.7% (YTD +20.8%) – best performer for the week
• NSE 10: +1.5% (YTD +20.0%)
• NASI: +1.4% (YTD +28.6%)
• NSE 20: +1.3% (YTD +24.8%)

Market performance was largely driven by strong gains in select large-cap counters:

• NCBA: +5.6%
• Equity Group: +4.0%
• DTB: +3.9%

These gains outweighed declines in EABL, which fell 1.1%.

Equities turnover fell 28.4% to USD 15.6 mn, from USD 21.8 mn the previous week, bringing the year-to-date total to USD 538.6 mn.

Foreign investors remained net buyers for the second straight week, with net inflows of USD 2.0 mn compared to USD 3.0 mn the prior week. Year-to-date, foreign investors have registered a net selling position of USD 27.0 mn, widening from USD 16.9 mn in 2024.

Corporate Earnings Highlight – Stanbic Holdings H1’2025

Stanbic Holdings released its H1’2025 financial results for the period ended 30th June 2025, revealing a decline in profitability amid increased provisioning and operating expenses.

Key Highlights

1. Earnings Decline
   • Profit after tax (PAT) fell 9.3% to Kshs 6.5 bn (H1’2024: Kshs 7.2 bn).
   • Core earnings per share (EPS) declined to Kshs 16.6 from Kshs 18.2.
   • The drop was mainly driven by a 3.3% decrease in operating income (Kshs 19.4 bn from Kshs 20.1 bn) and a 7.5% increase in total operating expenses (Kshs 10.8 bn from Kshs 10.1 bn).
2. Increased Provisioning & Stable Asset Quality
   • Loan loss provisions (LLP) rose 4.9% to Kshs 13.1 bn.
   • NPL coverage improved to 82.7% from 75.0%, supported by a 1.8% decline in gross non-performing loans to Kshs 23.9 bn.
   • Gross NPL ratio remained steady at 9.5%.
3. Reduced Lending & Shift to Government Securities
   • Customer loans and advances declined 2.2% to Kshs 233.0 bn, reflecting a cautious stance amid rising industry NPLs (17.6% vs 16.3% in H1’2024).
   • Investments in government securities surged 47.1% to Kshs 93.3 bn, indicating a preference for lower-risk assets.
4. Dividend Increase
   • Interim dividend of Kshs 3.80 per share, up from Kshs 1.84 in H1’2024.
   • Dividend yield improved to 13.7% (H1’2024: 13.1%), with payout ratio rising to 23.0% from 10.1%.

📊 Source: Nairobi Securities Exchange (NSE), Company Filings

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