The Nairobi Securities Exchange (NSE) was on an upward trajectory during the month of February 2026, with the major indices recording double-digit gains.
The Nairobi All Share Index (NASI) rose by 10.6% to close at 216.08 points from 195.36 points recorded in the previous month. The gain was mainly driven by advances in large-cap stocks, including Stanbic Holdings, KCB Group, and DTB-K which, gained 29.5%, 20.7%, and 20.0%, closing at KES 256.5, KES 80.25, and KES 154.75, respectively. The index is now up 20.33% year-to-date.
The NSE 10, which tracks the top ten listed companies, gained 10.8% to 2,268.39 points, while the NSE 20 climbed 13.7% to 3,750.45 points from 3,299.28 points in the previous month. Similarly, the NSE 25, edged up 11.8% settling at 5,948.29 points. The Banking sector index recorded the strongest performance, rising 14.4%, to close the month at 245.9 points.
Trading activity surged significantly during the month. The volume of shares traded surged in the month largely driven by the launch of Ziidi Trader platform. The platform has enhanced market accessibility by allowing investors to buy and sell shares directly at the NSE through the M-PESA application on their phones. Consequently, equity turnover soared, while market capitalization rose by 10.6% to KES 3.4 trillion from KES 3.1 trillion, highlighting improved investor confidence.
NSE Top Gainers
Retail chain Uchumi Supermarket emerged the top gainer, appreciating by 130.7% to KES 2.93, driven by speculative trading. Flame Tree Group followed at distance, gaining 59%. Sasini PLC and Eaagads PLC rose by 42.9% and 36.8%, respectively.
NSE Top losers
On the downside, Eveready PLC shed the most, declining by 18.7% to close the month at KES 1.13. Other notable decliners included BOC Kenya, BK Group, EAPC, and Satrix MSCI ETF, which fell by 3.6%, 2.0%, 1.8%, and 0.3%, respectively.
Macroeconomic environment
Inflation stood at 4.3%, down from 4.4% in January 2026, remaining within the Central Bank of Kenya (CBK) target range of 2.5% – 7.5%. Moderate inflation signaled an expanding economy that encouraged investment, while strengthening investor confidence in the market.
During the month, the CBK Monetary Policy Committee (MPC) lowered the Central Bank Rate (CBR) by 25 bps to 8.75% from 9.00%, translating to a cumulative 425 bps cut since August 2024.
March Outlook
Looking ahead to March, the bourse is expected to maintain its bullish momentum supported by the continued impact of the interest rate cuts on the macroeconomic front. The Ziidi Trader platform is also expected to further increase retail investor participation and trading volumes. The expected listing of the Kenya Pipeline Company (KPC) could increase market activity. The banking sector may remain in focus as lenders are expected to announce their FY2025 results, potentially influencing overall market direction.
Also Read: NSE Market Report: Bourse Turnover Falls Sharply as Equities Close in Red
