Kenya Weekly Equities Market Update | 10th April 2026

Market Performance

The Kenyan equities market extended its upward momentum during the week, with all major indices closing in positive territory, reflecting sustained investor confidence and continued recovery from earlier market volatility. The NSE 10, NSE 25, NASI, and NSE 20 gained by 4.8%, 4.0%, 3.9%, and 3.2%, respectively, further strengthening the year-to-date performance to 14.3%, 12.2%, 10.5%, and 9.9% for the NSE 20, NSE 25, NASI, and NSE 10, respectively.

The rally was primarily driven by strong performance in large-cap banking stocks, with Co-operative Bank, Equity Group, and Absa posting gains of 7.7%, 7.2%, and 4.4%, respectively. This underscores the continued dominance of the banking sector as a key driver of market performance, particularly in periods of recovery and positive sentiment.

Sector Performance & Market Activity

The banking sector led the market gains, with the banking sector index rising by 4.5% to 238.9 from 228.6, supported by strong upward movements in major banking counters. This reflects both improved investor sentiment toward the sector and confidence in its underlying fundamentals.

Market activity remained relatively stable, with equities turnover increasing marginally by 1.4% to USD 21.3 mn, up from USD 21.0 mn recorded in the previous week. This brought the year-to-date turnover to USD 475.4 mn, indicating sustained market participation despite ongoing external uncertainties.

However, foreign investor sentiment remained cautious, with net selling persisting for the tenth consecutive week. Net foreign outflows rose to USD 7.2 mn, from USD 5.8 mn recorded the previous week, bringing the year-to-date net selling position to USD 79.0 mn. While this remains below the USD 92.9 mn recorded over a similar period in 2025, it continues to highlight sustained external investor caution toward the market.

Corporate & Market Highlights

Jubilee Holdings – FY 2025 Results

Jubilee Holdings Limited reported a strong improvement in financial performance, with profit after tax increasing by 17.6% to Kshs 5.6 bn, driven primarily by growth in insurance service revenues.

Core earnings per share rose by 21.2% to Kshs 80.0, supported by a 16.5% increase in insurance service revenues, although this was partially offset by an 11.0% rise in insurance service expenses, indicating some pressure on margins. Net investment results also improved by 10.8%, while non-attributable expenses declined significantly, further supporting profitability.

The balance sheet expanded robustly, with total assets increasing by 17.6% to Kshs 251.1 bn, driven largely by growth in investment assets. Total liabilities also increased, primarily due to higher insurance contract liabilities, reflecting business expansion.

The Board recommended a total dividend of Kshs 15.0 per share (including interim), representing a 13.0% increase from the previous year and translating to a dividend yield of 3.8%, reinforcing the company’s commitment to shareholder returns.

Banking Sector Development – Zenith Bank Acquisition of Paramount Bank

The acquisition of 100% shareholding of Paramount Bank by Zenith Bank Plc marks a significant development in Kenya’s banking sector. The transaction provides Zenith Bank with a strategic entry into the Kenyan market, enhancing its regional expansion ambitions.

Paramount Bank has demonstrated steady growth, with total assets increasing to Kshs 17.1 bn and profit after tax rising modestly to Kshs 0.4 bn in FY 2025. However, its capital position remains below future regulatory requirements, highlighting the challenges faced by smaller banks in scaling operations independently.

The acquisition is expected to intensify competition, drive innovation, and accelerate consolidation within the sector, particularly among mid-tier banks. It also signals continued interest by regional players in Kenya’s banking market, reinforcing its position as a key financial hub in East Africa.

Centum Investment – Share Buyback Programme

Centum Investment Company PLC concluded its share buyback programme, which aimed to repurchase up to 10.0% of its issued share capital. However, the programme was significantly undersubscribed at 16.8%, with only 10.8 mn shares repurchased.

The low participation was largely due to the company’s share price trading significantly above the buyback offer price. While the buyback was priced at a maximum of Kshs 9.51, the stock traded as high as Kshs 15.60, making it more attractive for investors to sell in the open market rather than tender shares.

As a result, the company’s issued share capital reduced marginally, with repurchased shares held as treasury shares. While the programme had limited impact on capital structure optimization, it highlights the importance of pricing alignment in buyback strategies, as well as the strong market performance of the stock during the period.

Overall Market Outlook

The equities market maintained its upward trajectory during the week, supported by strong gains in the banking sector and improving investor sentiment. The continued positive performance of key indices, alongside robust year-to-date gains, reflects underlying market resilience.

However, persistent foreign investor outflows remain a key risk, suggesting that the recovery is largely driven by local investor participation and selective buying. Additionally, while corporate earnings—particularly in the financial sector—remain supportive, margin pressures in certain sectors and global uncertainties continue to pose potential headwinds.

Looking ahead, market performance is likely to be influenced by corporate earnings trends, foreign investor flows, and broader macroeconomic developments, with the potential for continued volatility. Nevertheless, the market continues to present selective opportunities, particularly in fundamentally strong sectors such as banking and financial services.

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