Kenya Weekly Equities Market Update | 3rd April 2026

Market Performance

The Kenyan equities market rebounded during the week, with all major indices closing in positive territory, signaling a recovery following the sharp correction recorded in the previous period. The NSE 10, NSE 25, NASI, and NSE 20 gained by 2.2%, 2.1%, 1.9%, and 1.8%, respectively, reflecting renewed investor confidence and selective buying across key counters.

This upward movement further strengthened the year-to-date performance, with gains of 10.8%, 7.9%, 6.4%, and 4.9% recorded for the NSE 20, NSE 25, NASI, and NSE 10, respectively, indicating sustained resilience in the market despite recent volatility.

The market’s performance was primarily supported by gains in large-cap banking stocks, with Absa, Co-operative Bank, and Stanbic Bank rising by 8.8%, 6.3%, and 6.1%, respectively. These gains underscore the continued strength and attractiveness of the banking sector, which remains a key driver of market momentum. However, the overall upside was partially weighed down by declines in select large-cap stocks such as EABL and DTB-K, which recorded losses of 1.2% and 0.5%, respectively.

Sector Performance & Market Activity

The banking sector led the market recovery, with the banking sector index rising by 3.0% to 228.6 from 221.9, supported by strong performance in major banking counters. This reinforces the sector’s role as a central pillar of the equities market, particularly in periods of recovery.

Market activity, however, softened during the week, with equities turnover declining by 43.0% to USD 21.0 mn, down from USD 36.8 mn recorded in the previous week. Despite the lower trading activity, the year-to-date turnover increased to USD 454.1 mn, indicating sustained participation over the broader period.

Foreign investor sentiment remained cautious, with net selling persisting for the ninth consecutive week. Net foreign outflows increased to USD 5.8 mn, from USD 3.9 mn recorded the previous week, bringing the year-to-date net selling position to USD 71.8 mn. While this remains below the USD 92.9 mn recorded over a similar period in 2025, it continues to highlight ongoing external investor caution toward the market.

Corporate Earnings Highlights

CIC Group – FY 2025 Results

CIC Group reported a significant decline in profitability for FY 2025, with profit after tax falling by 68.7% to Kshs 1.3 bn, primarily driven by the non-recurrence of a one-off fair value gain recorded in 2024 and elevated insurance claims during the period.

Core earnings per share declined sharply by 82.0% to Kshs 0.2, reflecting a substantial deterioration in underlying earnings. This was largely attributable to a 151.2% decline in net insurance income, which turned negative at Kshs (0.2) bn, alongside a 58.2% reduction in net investment results to Kshs 1.6 bn.

Operational pressures were further evident as insurance service expenses grew faster than insurance revenue, compressing margins and significantly weakening profitability. Despite these challenges, the balance sheet expanded, with total assets increasing by 19.1% to Kshs 73.7 bn, driven primarily by growth in financial investments.

The Group declared a dividend of Kshs 0.13 per share, translating to a dividend yield of 2.9%, reflecting a relatively conservative payout amid weaker earnings.

Britam Holdings – FY 2025 Results

Britam Holdings reported improved financial performance for FY 2025, with profit after tax increasing by 10.0% to Kshs 5.5 bn, supported by growth in both investment income and insurance revenue.

Core earnings per share rose by 10.0% to Kshs 2.2, driven by a 4.2% increase in net investment income and a 10.9% growth in insurance revenue. The growth in investment income was largely supported by higher interest and dividend income, as well as improved returns from investment property.

However, underlying insurance profitability weakened, with insurance expenses and reinsurance costs rising at a faster pace than revenue, leading to a 31.8% decline in net insurance service result. This suggests ongoing pressure on underwriting margins despite overall profitability growth.

The balance sheet expanded significantly, with total assets increasing by 16.9% to Kshs 243.8 bn, supported by growth in investment assets. Total liabilities also rose, primarily driven by higher insurance contract liabilities.

Notably, the Group did not declare a dividend for the seventh consecutive year, citing the need to conserve capital, which may remain a key consideration for investors.

Overall Market Outlook

The equities market recorded a recovery during the week, supported primarily by gains in the banking sector, even as foreign investor outflows persisted and trading activity declined. This suggests that the upward movement was largely driven by selective buying and local investor participation, rather than a broad-based return of foreign capital.

While short-term market sentiment remains influenced by external factors and sustained foreign selling, the continued strength in banking stocks and improving year-to-date performance indicate underlying resilience in the market.

Going forward, investor focus is likely to remain on corporate earnings performance, foreign investor flows, and global macroeconomic developments, with the potential for continued volatility in the near term. However, the market continues to present selective opportunities, particularly in fundamentally strong sectors such as banking.

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