The Nairobi Securities Exchange (NSE) market cap has surged 63.8% to KES 2.62 trillion year-on-year, the highest since February 2022. The market boom has been underpinned by a shift in investors’ interest from bonds to equities due to a fall in interest rates in treasury bonds and bills.
Interest rates on treasury bills dropped 50% to a range of 8.01% to 9.58% from 16% to 16.9% a year ago, while the average interest rate in treasury bonds has dropped to an average of 14% from 18% last year.
As of August 18, 2025, the NSE All Share Index (NASI) closed at 166.34, up 62.5% year-on-year and highest since February 8, 2022. The top10 largest companies at the bourse experienced a bull run in their share prices as well as their market cap. Safaricom’s market value increased by KES 486.8 billion to KES 1.08 trillion. Equity Group, KCB, and EABL saw their market value increase by KES 55.7 billion, KES 79.2 billion, and KES 44.2 billion to KES 206.6 billion, KES 175.1 billion, and KES 163.7 billion, respectively.
Standard Chartered Bank Kenya added KES 55.4 billion to its market cap to reach KES 127 billion, while Absa Bank Kenya added KES 31.8 billion to KES 108.1 billion. NCBA added KES 42.8 billion to KES 107.1 billion, Co-operative Bank added 25.2 billion to KES 100.3 billion, and KenGen raised its valuation by KES 33.6 billion to KES 49.1 billion. BAT gained KES 9.1 billion to a market cap of KES 43.9 billion.
Strong Bank Profits, Bond Yields Power NSE Gains
Additionally, the gains in the stocks have been driven by the strong half-year results posted by listed banks and the non-competitive coupons on new bonds issued. KCB and Equity Group recorded 8% and 17% growth in profit after tax to KES 32.3 billion and KES 34.6 billion, respectively. Absa Bank Kenya posted a net profit of KES 11.7 billion, up 9% year-on-year, while Co-operative Bank registered an 8.4% increase to KES 14.1 billion. Bonds issued this year have had an interest rate of between 12% and 14.4%, subject to a withholding tax of 10 to 15%.
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