NSE Opens 2026 with Strong Gains Across Key Indices

The Nairobi Securities Exchange (NSE) opened 2026 on a strong note as key indices rose, reflecting investor optimism ahead of the anticipated market correction linked to the 2027 polls. The NASI and N10 indices both gained 2.4 percent, while the NSE 20 and NSE 25 advanced by 3.0 and 2.5 percent, respectively, supported by heavy trading in Safaricom, which accounted for 40.6 percent of turnover and rose 2.1 percent to KSh 29.10. Banking stocks also performed well, with Equity Group, KCB, and I&M Group rising 3.7, 1.9, and 4.9 percent, while Car & General led gains across sectors with a 12.3 percent rally to KSh 57.25.

Foreign investor activity surged after the US Federal Reserve rate cut in December, driving net outflows of US$104,000 even as their overall market participation jumped to 43.3 percent from just 2.3 percent the previous week. Market watchers noted that Safaricom led the selling charge while Equity Group attracted the most foreign buying, signaling a rotation of capital within the market. Analysts expect attention to shift this week toward the Energy and Petroleum Regulatory Authority’s January-February pump price review, which could influence sentiment in energy-linked counters.

Economic indicators remain supportive of continued market growth, with Kenya’s 3Q25 GDP expanding by 4.9 percent, driven by strong performance in transport, financial services, construction, and real estate sectors. Manufacturing and non-oil business output also remained resilient, supported by robust domestic demand, highlighting a stable macroeconomic backdrop for equity investors.