The Nairobi Securities Exchange (NSE) registered a slight retreat in Week 17 of 2026 after enjoying three straight weeks of gains, with all benchmark indices ending the week lower.
Market capitalisation slipped by 0.50% to KSh 3.43 trillion from KSh 3.45 trillion, wiping out KSh 17.25 billion amid renewed geopolitical uncertainty and a resurgence in foreign investor sell-offs.
The All Share Index declined 0.50% to 207.09, while the Banking Index posted the steepest loss, dropping 0.97% to 238.81. The NSE 20 Share Index fell 0.48% to 3,589.13.
Meanwhile, the NSE 25 shed 0.38% to close at 5,735.29, with the NSE 10 edging down 0.22% to 2,167.55. Despite the decline, the market remained KSh 192 billion above the Week 13 low of KSh 3.24 trillion.
Global markets were rattled once again as tensions involving the US, Israel and Iran intensified, reversing optimism sparked by a short-lived ceasefire. Murban crude oil prices climbed to $92.38 per barrel from $89.61 as shipping disruptions in the Strait of Hormuz persisted.
Inflationary pressures also intensified globally. UK inflation rose to 3.3% in March, Canada’s reached 2.4%, while US inflation accelerated to 3.3% from 2.4%, largely due to elevated energy costs. The Central Bank of Kenya (CBK) identified the ongoing conflict as a major contributor to rising global inflation.
Top Movers
Eaagads emerged as the top gainer, climbing 9.50% to KSh 35.15. BOC Kenya advanced 8.94% to KSh 152.25, Standard Group added 5.37%, BK Group rose 3.85% to KSh 54.00, while Olympia Capital gained 3.77%.
On the losing side, Kenya Pipeline dropped 6.84% to KSh 9.26 after posting gains the previous week. Sameer Africa fell 6.82%, TPS Serena declined 6.31%, Kenya Airways lost 5.59%, and Shri Krishana Overseas dipped 4.54%.
Equity turnover declined sharply by 44.60% to KSh 3.0 billion from KSh 5.41 billion, while traded volumes plunged 68.61% to 106.64 million shares following the fading effect of the previous week’s Kenya Pipeline Corporation block trade.
Safaricom remained the market’s most actively traded counter, accounting for 49.11% of total turnover at KSh 1.47 billion. The stock gained 1.01% to close at KSh 29.90 after trading 49.2 million shares.
Banking stocks contributed 36.28% of total market turnover, equivalent to KSh 1.08 billion, with KCB, Equity Group and Co-operative Bank leading activity.
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Foreign investors reverted to net selling after a brief inflow in Week 16, recording net outflows of KSh 311.98 million. Every trading session closed in negative territory for foreign flows, with Monday and Friday registering the largest outflows.
Notably, offshore investors accounted for 52.12% of total market turnover at KSh 1.56 billion, marking the first time in recent weeks that foreign participation surpassed half of all market activity. Local investor turnover weakened to KSh 1.44 billion, underlining reduced domestic participation as foreign institutions increasingly dominated trading.
Bond market activity surged, with turnover rising 51.90% to KSh 61.77 billion from KSh 40.67 billion. The Bond Index gained 0.23% to close at 1,167.37.
Monetary Policy and Currency Market
The Kenyan shilling remained largely stable at KSh 129.21 against the US dollar.
CBK foreign exchange reserves declined for a seventh consecutive week to USD 13.24 billion, equivalent to 5.6 months of import cover. Since March 5, reserves have fallen by USD 1.36 billion, reflecting pressure from elevated oil import costs.
Treasury bill rates trended upward, with the 91-day paper rising to 7.78% from 7.42%, marking the sharpest increase on the short end since the onset of the conflict. The 182-day rate climbed to 7.89%, while the 364-day rate remained unchanged at 8.27%.
The rise in short-term yields, alongside KESONIA holding at 8.76%, points to tightening liquidity conditions despite the Central Bank Rate remaining unchanged.
Kenya’s Eurobond yields also climbed as geopolitical risks intensified. The 2028 Eurobond yield rose to 7.46% from 7.32%, while the 2048 tenor increased to 9.28% from 9.08%.
Derivatives trading recorded 4,125 contracts valued at KSh 13.9 million.
Corporate Developments
Sanlam Allianz Holdings Kenya and WPP Scangroup released their audited financial results during the week.
Separately, Co-operative Bank announced plans for a corporate restructuring that would see it transition into a non-operating holding company under the proposed name Co-op Bank Group PLC, pending regulatory approval.
