The Nairobi Securities Exchange (NSE) reported a remarkable financial turnaround in 2024, posting a net profit of Sh116.3 million — a staggering 500% increase from Sh18.4 million in 2023.
The surge highlights the exchange’s robust growth, fueled by increased transaction levies and interest income.
The NSE’s financial performance was buoyed by a 20% rise in equity transaction levy, which reached Kshs. 253.6 million in 2024, up from Kshs. 211.1 million the previous year.
Additionally, bond transaction levy more than doubled, soaring over 100% to Kshs. 169.9 million from Kshs. 64.4 million in 2023.
Interest income also grew from Kshs. 120.9 million to Kshs. 147 million, reflecting increased trading activity and investor confidence.
Despite a 13% rise in total expenses to Sh673 million, the exchange’s total investable funds increased to Sh1 billion from Sh850 million, including regulatory restricted funds of Sh292.6 million.
This financial resilience translated into improved profitability metrics, with return on assets rising from 0.9% to 5.4% and return on equity from 1% to 5.9%, indicating stronger efficiency and investor returns.
The NSE’s impressive financial performance has prompted the Board of Directors to recommend a dividend payout of Sh0.32 per share — doubling last year’s Sh0.16 — signaling confidence in the market’s growth prospects.
Analysts view this growth as a positive indicator of increased investor participation and market confidence, positioning the NSE as a key driver of Kenya’s financial sector growth.
The exchange’s strategic initiatives and expanding investor base are expected to further enhance its profitability and market influence in the coming years.
