Kenyan Equities Market Update | 30 January 2026

Monthly Performance (January 2026)

The Kenyan equities market recorded a broad-based rally in January 2026, supported by sustained interest in large-cap banking stocks and improving macroeconomic sentiment.

All major indices closed the month higher, with:

• NSE 20 gaining 5.1%
• NASI up 4.7%
• NSE 25 rising 4.4%
• NSE 10 advancing 4.2%

Performance during the month was largely driven by banking sector heavyweights, notably:

• Co-operative Bank (+13.6%)
• ABSA Bank Kenya (+13.2%)
• Diamond Trust Bank Kenya (DTB-K) (+12.7%)

These gains outweighed losses in select consumer stocks, particularly EABL, which declined by 1.7% over the month.

Weekly Performance

During the week under review, the equities market maintained its upward momentum, with:

• NSE 20 gaining 1.0%
• NSE 10 up 0.9%
• NASI and NSE 25 each rising 0.4%

This brought year-to-date (YTD) gains to:

• NSE 20: 5.0%
• NASI: 4.3%
• NSE 25: 4.0%
• NSE 10: 3.6%

Weekly performance was led by strong gains in:

• DTB-K (+10.3%)
• EABL (+7.4%)
• ABSA (+5.7%)

However, these gains were partially offset by declines in:

• NCBA Group (-5.1%)
• Equity Group (-2.5%)
• Co-operative Bank (-0.9%)

Banking Sector Performance

Monthly Banking Sector Performance

The banking sector index recorded a 5.6% gain in January, closing at 215.0, up from 203.7 at the end of December 2025. The rally reflected renewed investor appetite for banking stocks amid easing interest rates, improving liquidity conditions, and resilient earnings expectations.

The strongest contributors to the sector’s monthly performance were:

• Co-operative Bank (+13.6%)
• ABSA Bank Kenya (+13.2%)
• DTB-K (+12.7%)

Weekly Banking Sector Performance

In contrast, the banking sector index declined marginally by 0.3% week-on-week, reflecting profit-taking following the strong January rally.

Weekly losses were driven by:

• NCBA Group (-5.1%)
• Equity Group (-2.5%)
• Co-operative Bank (-0.9%)

These declines were partly cushioned by gains in:

• DTB-K (+10.3%)
• ABSA Bank Kenya (+5.7%)
• Standard Chartered Bank Kenya (+0.7%)

Market Activity and Foreign Investor Flows

Monthly Turnover

Equities turnover declined by 20.7% month-on-month to USD 104.5 mn in January 2026, from USD 131.7 mn in December 2025. Foreign investors turned net sellers, recording net outflows of USD 8.4 mn, compared to a marginal net buying position in December.

Weekly Turnover

During the week, equities turnover increased by 29.6% to USD 30.9 mn, from USD 23.9 mn recorded in the previous week. Foreign investors returned as net buyers, posting net inflows of USD 4.0 mn, reversing the net selling position of USD 4.2 mn recorded a week earlier.

As at the end of the week, YTD turnover stood at USD 104.5 mn, while YTD foreign net selling narrowed to USD 8.4 mn, a significant improvement compared to USD 92.9 mn of net outflows recorded in 2025.

Weekly Highlight: EABL HY’2026 Financial Performance

Earnings Summary

East African Breweries Plc reported a strong rebound in profitability for the half-year ended 31 December 2025, with Profit After Tax increasing by 37.7% to Kshs 11.2 bn, up from Kshs 8.1 bn in HY’2025.

The improved performance was primarily driven by:

• A 36.8% reduction in finance costs to Kshs 2.2 bn
• An 11.1% increase in net revenue to Kshs 75.5 bn

However, earnings growth was partially offset by:

• A 91.8% decline in foreign exchange gains
• Marginally higher operating costs

Key Financial Highlights

• Net revenue grew by 11.1%, supported by an 8.0% increase in volumes sold and continued benefits from digital distribution initiatives.
• Operating costs rose marginally by 0.2%, reflecting cost pressures from illicit trade and constrained consumer purchasing power.
• Cost of sales increased by 8.5%, driven by higher raw material and input costs.
• Forex income declined sharply due to regional currency depreciation, notably a 2.2% weakening of the Tanzanian Shilling against the US Dollar.
• Total assets expanded by 2.0% to Kshs 140.6 bn, mainly due to higher current assets.
• Total liabilities declined by 4.4%, reflecting reduced borrowings and improved balance sheet strength.
• Earnings per share increased by 52.7% to Kshs 23.4.

Dividend Declaration

The Board declared an interim dividend of Kshs 4.00 per share, translating to:

• Annualised dividend yield: 3.9%
• Dividend payout ratio: 28.3%

The dividend announcement is expected to support investor confidence in the stock, despite a lower yield relative to the prior year.

Outlook

EABL’s improved profitability reflects the benefits of easing inflationary pressures, reduced finance costs, and a more stable currency environment. While foreign exchange gains declined sharply, the Group’s diversification strategy, volume recovery, and government efforts to curb illicit alcohol trade are expected to support earnings going forward.

Overall, the results signal a solid recovery trajectory, reinforcing EABL’s position as a key defensive consumer stock within the Kenyan equities market.