The Nairobi Securities Exchange (NSE) recorded a positive performance in May amid rising inflationary pressures.
The Nairobi All Share Index (NASI) edged higher despite losses in large-cap stocks such as BAT Kenya, Stanbic and Absa Bank Kenya, which declined by 9.4%, 5.8%, and 5.7%, respectively. NASI settled at 205.69 points, up 0.2% from 205.34 points recorded in the previous month.
However, the market was supported by gains in heavyweights including Co-operative Bank, EABL, and Equity Group, which gained 2.6%, 1.8%, and 1.0%, respectively. The NSE 10, NSE 20 and NSE 25 declined by 0.9%, 1.0%, and 0.2%, closing the month at 2,154.68 points, 3,513.12 points, and 5,659.05 points, respectively.
Trading activity gained significant momentum during the review period, with the volume of shares traded surging 197.1% to 53.1 million. Equity turnover soared 259.6% to KES 3.0 billion, while market capitalization closed at 3.41 trillion, up 0.2% month-on-month.
Monthly Top Gainers and Losers
BOC Kenya PLC led the gainers after rising by 15.4%, followed by Kapchorua Tea which rose by 12.7%. Shri Krishana Overseas PLC climbed 10.7%, while Car and General nudged upwards by 8.6%. HFCB Group PLC rounded out the top gainers after rising by 8.0%.
On the losers’ side, declines were significant with top losers recording double-digit losses. Retail chain Uchumi Supermarkets was the biggest laggard after shedding 18.6%. Kenya Airways fell by 11.1%, while Home Afrika declined by 10.7%. Sameer Africa dropped by 10.4%, while Longhorn Publishers shed 10.1%.
NSE Listings Highlight Capital Market Depth
The Exchange welcomed three new listings during the month. Kenya Mortgage Refinance Company (KMRC) listed its KES 3.0 billion sustainability bond following a successful issuance that attracted applications worth KES 9.4 billion, against a target of KES 3.0 billion. KMRC’s bond carries a yield of 12.20% and an amortizing tenor of 8 years, with a weighted average life of 5.11 years.
I&M Bank also listed the first tranche of its KES 20 billion Domestic MTN Programme. The notes carry a tenor of 5.5 years and a coupon of 12.20%.
Spearhead Africa Asset Management listed Kenya’s first infrastructure fund, the Spearhead Africa Infrastructure Fund on the NSE’s Unquoted Securities Platform (USP), marking a key milestone in the deepening of Kenya’s capital markets.
NSE Outlook for June 2026
Looking ahead, the NSE may trend downward in June as investors assess the implications of Kenya’s rising inflation, which edged higher to 6.7% in May from 5.6% in April. The rising inflation, largely driven by higher fuel costs, raises the likelihood of a tighter monetary policy stance by the Central Bank of Kenya (CBK) in its upcoming Monetary Policy Committee (MPC) meeting scheduled for June 9, 2026.
Higher interest rates could make fixed-income instruments such as Treasury bills and bonds more attractive relative to equities, potentially prompting a shift in investor allocation away from stocks.
