Kenya Equities Market Update | 9th January 2026

Executive Summary

The Kenyan equities market recorded a strong rebound during the week, supported by renewed investor interest in banking stocks, improving market sentiment, and a notable recovery in trading activity. All major equity indices closed higher, while foreign investors extended their net buying streak for the second consecutive week, marking a positive start to the year.

Market Performance

During the week, the equities market was on an upward trajectory, with all major indices posting gains:

• NSE 20 gained 3.0%
• NSE 25 gained 2.5%
• NSE 10 gained 2.4%
• Nairobi All Share Index (NASI) gained 2.4%

As a result, year-to-date (YTD) performance stood at gains of 3.0%, 2.5%, 2.4% and 2.4% for the NSE 20, NSE 25, NSE 10 and NASI, respectively.

The positive market performance was primarily driven by strength in large-cap banking stocks, notably:

• Co-operative Bank (+8.6%)
• NCBA Group (+4.7%)
• Equity Group (+3.7%)

These gains more than offset losses recorded in select counters, particularly East African Breweries Limited (EABL), which declined by 4.4% during the week.

Banking Sector Performance

The Banking Sector Index rose by 3.6%, closing the week at 211.7, up from 204.4 the previous week. The rally mirrored strong performance among tier-one and mid-tier banks, reflecting improving investor confidence in the sector amid expectations of lower funding costs, easing credit conditions, and resilient earnings outlooks.

Market Activity and Foreign Investor Participation

Equities market activity picked up sharply during the week, with turnover increasing by 230.7% to USD 27.1 million, from USD 8.2 million recorded the previous week. This brought year-to-date total turnover to USD 27.9 million, signaling a strong rebound in trading volumes at the start of the year.

Foreign investors remained net buyers for the second consecutive week, recording a net buying position of USD 0.5 million, up from USD 0.1 million the previous week. Consequently, YTD foreign net inflows stood at USD 0.5 million, a notable turnaround compared to the USD 92.9 million net outflows recorded in 2025.

Outlook

The week’s performance highlights a constructive start to the year for the Kenyan equities market, supported by:

• Renewed foreign investor participation
• Strong recovery in banking stocks
• Improved market liquidity and trading activity

Going forward, market direction is likely to be influenced by corporate earnings expectations, monetary policy developments, foreign investor flows, and macroeconomic data, particularly inflation and interest rate trends. While selective profit-taking remains a risk, especially in non-banking large caps, the improving sentiment in the banking sector provides a supportive anchor for the broader market in the near term.