The Nairobi Securities Exchange (NSE) was on a bullish momentum in the third quarter of 2025, underpinned by stable inflation, interest rate cuts, new listings, and robust half-year earnings from leading counters.
Data from the Capital Markets Authority (CMA) shows that the Nairobi All Share Index (NASI) rose by 15.2% to 176.74 points in Q3 2025 from 153.43 points in Q2 2025, while the NSE 20 Share Index increased by 21.82% to 2,972.64 points from 2,440.26 points in Q2 2025.
Total shares traded increased by 26.1% to 1.8 billion shares up from 1.4 billion shares in the second quarter of 2025. Equity turnover rose sharply by 55.34% to KES.46.2 billion relative to Q2 2025 and was up 165.79% in Q3 2024, highlighting increased trading activity over the review period. Market capitalization stood at KES 2.784 trillion, up 15.2% from KES 2.42 trillion in second quarter of 2025 and 66.1% higher year-on-year.
Inflation stood at 4.6% in September 2025, up from 3.8% in June 2025, but remained within the Central Bank of Kenya (CBK) target range. Moderate inflation signaled an expanding economy that encouraged investment, while strengthening investor confidence in the market.
The Monetary Policy Committee (MPC) of the CBK lowered the Central Bank Rate to 9.25% from 13.00% in August 2024, resulting in cheaper credit and expansion of the private sector activity. Lowering of the CBR resulted in shifting of investors’ interest from government papers to stocks as yields in Treasury Bonds and Bills declined.
According to a report by Cytonn, average yields for T-bills in the third quarter of 2025 were 8.0%, 8.2%, and 9.6% on the 91-day, 182-day, and 364-day papers, respectively. In contrast, during the same period the previous year, 91-day, 182-day, and 364-day papers had yields of 15.9%, 16.7%, and 16.9%, respectively.
During the review period the NSE welcomed two new listings. Packaging firm Shri Krishana Overseas Limited and Satrix MSCI World Feeder ETF were listed on the securities exchange through introduction. The new listings offered investors new products to invest in. The Satrix ETF became the second ETF to list on the NSE, marking a major milestone for both the bourse and Kenya’s capital markets.
The Nairobi exchange also 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. During the review period, local investors accounted for 70% of trading volumes, buoyed by the single-unit trading rule and access to digital brokerage platforms.
Upturn of the NSE All Share Index
The surge in the NSE All Share Index was further supported by robust financial performance recorded among large cap companies in the first half of the year. Equity Group and KCB Group posted 17% and 8.1% after-tax profit growth reaching KES 34.6 billion and KES 31.5 billion, respectively. NCBA Group’s net profit rose by 26.7% to KES 20.8 billion, while Absa Bank Kenya’s net profit edged up 9.1% to KES 11.7 billion. East African Breweries Plc (EABL) recorded a 12.2% increase in profit after tax in FY2025 to KES 12.2 billion. The companies declared attractive dividends that fueled investor appetite for top-tier stocks.
