Kenya's Stock Market Value Returns Above KSh 2 Trillion on Positive Indexes

• Kenya’s stock market rally was driven by improved investor sentiment and strong gains across all major stock indices
• Equity market activity surged, with turnover up 56.9% to KSh 2.24 billion and shares traded nearly doubling to 168.66 million units
• Kenya’s Eurobond yields dropped by an average of 43.2 basis points, reflecting improved investor confidence, according to economist Daniel Kathali

Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.

Kenya’s stock market capitalisation crossed back above the KSh 2 trillion mark in the week ending May 15, 2025.

The market rally was buoyed by strong performance across key share indices and increased investor activity at the Nairobi Securities Exchange (NSE).

The NSE All Share Index (NASI) rose by 5.7%, while the NSE 25 and NSE 20 indices climbed 5.3% and 4.3%, respectively, according to the CBK weekly report.

This resurgence in investor confidence pushed market capitalisation to KSh 2.096 trillion, up from KSh 1.982 trillion the previous week, a 5.7% increase.

Surge in market activity

Market activity surged, with total equity turnover rising by 56.9% to KSh 2.24 billion, and shares traded increasing sharply by 99.6% to 168.66 million units.

The number of deals dipped slightly, but improved valuations and trading volumes indicated a broad-based rally across the market.

Performance in the bond's market

In the fixed income segment, bond turnover in the domestic secondary market increased by 14.3% to KSh 42.3 billion.

Meanwhile, in the international market, Kenya’s Eurobond yields dropped by an average of 43.2 basis points, with the 10-year, 12-year, and 30-year bonds all recording yield declines.

Speaking to TUKO.co.ke, Daniel Kathali, an economist, explained that the rise in bond turnover in the domestic market indicates sustained interest from institutional investors, while the drop in yields in the international market indicates rising investor confidence.

"Lower yields typically reflect a reduced premium demanded by investors to hold a country’s debt, suggesting that investors perceive less risk of default or macroeconomic instability.

This shift in sentiment may be driven by Kenya’s recent efforts to stabilise its currency, maintain adequate foreign exchange reserves, and implement fiscal reforms. As a result, Kenya is likely to benefit from lower borrowing costs in global markets, which can ease pressure on public finances and support economic recovery efforts," Kathali explained.

Kenya shilling performance

In other news, the Kenyan shilling showed marginal gains against the US dollar, strengthening slightly to KSh 129.25 on May 15 from KSh 129.27 a week earlier.

The shilling also appreciated slightly against regional currencies like the Tanzanian shilling, Ugandan shilling, Rwandese franc, and Burundian franc.

It also remained stable against major global currencies such as the Sterling pound, Euro, and Japanese Yen despite global currency volatility.

Additionally, Kenya’s foreign exchange reserves stood at a healthy USD 10.164 billion (about KSh 1.313 trillion), providing 4.5 months of import cover.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke