The Nairobi Securities Exchange (NSE) ended July 29, 2025 with resilient performance buoyed by a rare surge in listings, improved trading activity, and steady foreign investor interest.
While specific daily index levels were not disclosed, mid‑July data indicates sustained gains across key indices: NASI, NSE 25, NSE 10 and NSE 20 have all trended upward in recent weeks, with NASI rising over 5% in the prior week and year‑to‑date gains of around 21.6%.
A remarkable uptick in equity listings contributed to the renewed market momentum. Three new issuers in July the highest additions in nearly a decade included Shri Krishana Overseas (SKL) Limited and an infrastructure asset-backed security (Linzi FinCo 003) aimed at financing the Talanta Stadium for AFCON 2027.
The potential IPO of Kenya Pipeline Company (KPC) also looms as a major catalyst for deeper market participation.
Market breadth has been bolstered by activity in key large-cap names. Equity Group and KCB remain leading movers, with Equity trading Ksh 291 million in mid-July at Ksh 49.45 per share. Safaricom, Equity, and Kenya Power have consistently driven index gains, while foreign investor participation continues to shape sentiment.
Though foreign volume share dipped from nearly 30% to 8.8%, net inflows stayed positive with Ksh 49.95 million recorded on a recent session.
Equity turnover remains robust total trading turnover for Q1 2025 reached Ksh 2.06 trillion, supported by a 16.4% increase in market capitalization from Ksh 1.77 trillion in Q1 2024 to Ksh 2.06 trillion in Q1 2025.
Trading volumes grew by 43.6% to 1.58 billion shares in the same period, while bond trading and derivatives emerged as additional growth vectors.
Derivative market innovation marked a milestone in early July 2025 with the launch of single-stock futures contracts. Initial margin requirements were announced for five key firms KPLC, KenGen, Kenya Reinsurance, Liberty, and Britam expanding the NSE’s risk management toolkit and encouraging institutional participation.
Looking ahead, analysts and market watchers highlight a need for broader sector diversification, deeper liquidity, and more listings to sustain momentum.
Despite progress, some stakeholders caution the exchange remains dominated by traditional sectors such as banking, utilities, and manufacturing, with limited representation from emerging areas like tech and pharmaceuticals.
In summary, as of July 29, 2025, the Nairobi Securities Exchange stands on firmer ground. Rebounding domestic listings, stable foreign inflows, expanded financial instruments and sectoral strength in banking and telecoms have underpinned recent performance gains.
Still, market participants underscore continued reform, diversification, and new issuances as vital to deepen capital markets and sustain investor confidence.
Written By Ian Maleve
