The Nairobi Securities Exchange (NSE) extended its bullish momentum in the year 2025 evidenced with a significant upturn in the Nairobi All Share Index (NASI), which gained 51% closing the year at 186.58 points compared to 123.48 points recorded at the end of the previous year.
The Bourse’s stellar performance was driven by a number of factors including improved macroeconomic environment, declining interest rates, enhanced liquidity, and strong corporate earnings growth especially from banking counters.
In 2025, the Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) cut the Central Bank Rate (CBR) by 225 bps to 9.00% in December from 11.25% at the start of the year, resulting to declines in Treasury bill yields. As treasury bill yields moderated, equities became relatively more attractive, and investors rotated out of fixed income into dividend-paying and growth stocks at the NSE.
During the review period, the NSE introduced single-share trading, scrapping the minimum board lot rule of 100 shares. The initiative, which allows investors to buy and sell shares in single units, enhanced market liquidity and boosted retail investor participation.
Additionally, the NSE welcomed two new listings. Packaging manufacturing firm Shri Krishana Overseas Limited and Satrix MSCI World Feeder ETF were listed on the securities exchange through introduction, offering investors new products to invest in. The Satrix ETF became the second ETF to list on the NSE, after the Absa New Gold ETF, marking a major milestone for both the bourse and Kenya’s capital markets.
Strong corporate earnings by listed banks were instrumental in the upward trajectory of the exchange. In the first nine months ended September 30, 2025 Equity Group, KCB, and Co-op Bank recorded 32%, 3.4%,12.3% year-on-year growth in net earnings to KES 54.1 billion, 47.3 billion, and 21.6 billion, respectively. I&M Group and Diamond Trust Bank (DTB) Group recorded 28.3% and 12.3% growth in net earnings to KES 12.7 billion and KES 8.4 billion, respectively. HF Group posted the highest growth, up 104.3% to KES 989 million.
The NSE-20 index rose sharply by 56.1% closing at 3,139.19 points, marking its second highest annual gain after a historic 101.5% surge in 2003. Similarly, the NSE-25 index surged 49.8%, closing the year at 5,096.68 points. The NSE-10, which tracks the performance of the 10 best-performing blue-chip companies listed at the NSE, settled at 1,965.20 points, up 50.9%. The newly 2025-launched Banking Sector Index closed the year at 203.65 points.
Top Gainers and Losers
Out of the 60 counters that participated in trading, 54 recorded gains while 6 recorded losses. Retail chain Uchumi Supermarket emerged as the top gainer, rising by 505.88% closely followed by Sameer Africa, which appreciated by 486.4%, Home Afrika at 262.2%, and NSE PLC at 237.5%. The counters ended the year at KES 1.03, KES 14.55, KES 1.34, and KES 20.25, respectively.
The losers included TPS EA Serena (-1.3%), Kenya Airways (-7.83%), Nation Media Group (-19.8%), Nairobi Business Ventures (-26.9%), Umeme Limited (-53.3%), Kapchorua Tea Kenya (-5.74%) and Williamson Tea Kenya (-34%). The stocks closed at KES 14.70, KES 3.53, KES 11.55, KES 1.47, KES 7.82, KES 221.50, and KES 149.50, respectively. Across sectors, insurance led the gains at 86.6%, while manufacturing gained the least at 38.2%.
NSE 2026 Outlook
The Nairobi Securities Exchange is poised to maintain its bullish momentum in 2026, supported by improving investor sentiment and a stable macroeconomic environment. Market capitalisation is projected to continue expanding, driven by further share price appreciation across large-cap and mid-cap counters.
The outlook is further strengthened by anticipated new listings. AA Kenya, Kenya Pipeline Company (KPC), and Family Bank are expected to join the bourse. These listings are expected to deepen market breadth and attract both local and foreign investors. With the adoption of single-share trading, retail investor participation is anticipated to increase.
Overall, the NSE enters 2026 on a solid footing, with market fundamentals, investor confidence, and structural developments aligned to support continued growth.
Also Read: HF Group Tops Banking Counters in Share Price Appreciation in 2025
