NSE Adds KSh817 Billion in Investor Wealth as Record June Crowns Strongest First Half in Years

The Nairobi Securities Exchange (NSE) wrapped up the first six months of 2026 on a high note, with investors gaining KSh817.2 billion in market value as robust corporate earnings, a sustained rally in banking stocks and renewed appetite for blue-chip counters propelled key indices to record and multi-year highs.

Momentum gathered pace in June, which emerged as the exchange’s best-performing month of the year, before carrying into the opening days of July and pushing the NSE’s total market capitalisation to an all-time high of KSh3.812 trillion.

Highlights

• First Half (H1): Market capitalisation climbed by KSh817.2 billion to KSh3.762 trillion. The NASI advanced 20.14%, while the Banking Sector Index outperformed all other benchmarks with a 25.27% gain.
• Second Quarter (Q2): Listed companies added KSh531 billion in market value as improving earnings, attractive dividend payouts and strong demand for banking shares fuelled the rally.
• June: The market generated KSh350.5 billion in wealth, marking the largest monthly increase in at least 18 years. Foreign investors also posted a fourth consecutive June of net inflows.
• Week Ended July 3: The bullish momentum extended into the second half of the year, lifting market capitalisation to a record KSh3.812 trillion, with all five major equity indices closing higher.

Investors Gain KSh817 Billion in Six Months

The value of companies listed on the NSE rose from KSh2.945 trillion at the end of December 2025 to KSh3.762 trillion by June 30, translating into an increase of KSh817.2 billion in shareholder wealth.

All major indices delivered double-digit returns during the period. The NASI gained 20.14%, the NSE 25 rose 21.82%, the NSE 10 advanced 22.61%, while the Banking Sector Index emerged as the strongest performer with a 25.27% return. Meanwhile, the NSE 20 Share Index climbed 19.63%, reaching its highest level since 2018.

Large-cap counters were the primary drivers of the rally.

Safaricom accounted for the biggest contribution, creating KSh282.8 billion in shareholder value, representing more than a third of the total market gains. Other notable contributors included Equity Group (KSh99.6 billion), Co-operative Bank (KSh92.5 billion), I&M Holdings (KSh75.1 billion), Absa Bank Kenya (KSh58.4 billion), Stanbic Holdings (KSh52 billion) and KCB Group (KSh48.9 billion).

Banking stocks continued to dominate investor interest throughout the first half of the year. I&M Holdings led the sector with a 62.54% gain, followed by Stanbic Holdings (45.64%), Co-operative Bank (45.30%), Absa Bank Kenya (32.79%) and Equity Group (30.34%).

Also Read: Vodacom Finalises KSh272 Billion Safaricom Acquisition, Secures Majority Stake

Outside the banking sector, Car & General emerged as the best-performing stock after soaring 132.84%. It was followed by Kenya Airways (69.41%), Uchumi Supermarket (60.19%), Africa Mega Agricorp (56.03%) and Eaagads (49.27%).

Second Quarter Rally Gains Momentum

The second quarter saw investors add KSh531 billion to the market’s value as stronger financial results, generous dividend declarations and renewed institutional demand lifted blue-chip stocks across multiple sectors.

During the quarter, the NASI gained 15.05%, the NSE 25 advanced 14.62%, the Banking Index rose 13.87%, the NSE 20 climbed 9.44%, while the NSE 10 added 4.75%.

The quarter also featured the successful listing of Family Bank, expanding the exchange’s market capitalisation and increasing the banking sector’s footprint on the bourse.

June Delivers Historic Market Gains

June proved to be the standout month of the year after listed companies collectively added KSh350.5 billion in market value, the largest monthly increase recorded in at least 18 years. This lifted the exchange’s market capitalisation to what was then a record KSh3.762 trillion.

All benchmark indices ended the month in positive territory. The NSE 10 led with an 11.83% gain, followed by the NSE 25 (9.72%), Banking Index (9.26%), NASI (8.97%) and NSE 20 (6.90%).

Foreign investors purchased a net KSh486.4 million worth of Kenyan equities during June, marking the fourth consecutive June in which overseas investors recorded net inflows. Although lower than the KSh820 million registered in June 2025, the continued buying reflects improving international confidence in Kenyan equities following months of sustained foreign selling.

Top Performing Stocks in H1 2026

Trading activity during June was significantly boosted by the Safaricom block transaction completed on June 30, which sharply increased both turnover and trading volumes.

Market Extends Rally Into July

The bullish trend continued during the week ending July 3, with all five major equity indices posting further gains as market capitalisation climbed to a new record of KSh3.812 trillion.

The NASI rose 2.14% to 227.17, while the NSE 25 gained 2.59% to 6,344.17. The NSE 20 added 2.24% to 3,827.10, the NSE 10 climbed 3.25% to 2,464.97, and the Banking Index advanced 2.75% to 261.51.

Weekly trading activity reached unprecedented levels following the Vodacom Safaricom block trade. Equity turnover surged to KSh215.3 billion from KSh7.3 billion, while trading volume jumped to 6.19 billion shares, up from 163.5 million the previous week. Safaricom alone accounted for KSh205.1 billion, representing 95.3% of the week’s total turnover after more than 6.03 billion shares changed hands.

Outside the block transaction, institutional investors remained active in Kenya’s largest listed firms. Equity Group recorded KSh6.2 billion in traded value, followed by KCB Group (KSh974.9 million), EABL (KSh686.7 million) and I&M Holdings (KSh334.2 million), highlighting continued investor preference for fundamentally strong blue-chip companies.

Foreign investors posted a modest net outflow of KSh24.7 million during the week, a marked improvement from the previous week’s KSh447.6 million outflow. Local investors accounted for nearly 99% of turnover, largely due to the Safaricom transaction.

Economic Indicators Remain Supportive

Beyond the equities market, Kenya’s macroeconomic environment continued to improve. Inflation eased to 6.4% in June from 6.7% previously, while the Kenya shilling strengthened to 129.30 against the US dollar.

Official foreign exchange reserves rose to US$14.05 billion, equivalent to six months of import cover, although Treasury bill yields edged slightly higher across all tenors.