The Nairobi Securities Exchange (NSE) has recorded its sharpest weekly decline since the COVID-19 era, with KSh 231.17 billion wiped off market value over five straight sessions of losses in Week 13 ending March 27, 2026.
This marks the second-largest weekly drop since 2008, surpassed only by the KSh 340.86 billion slump witnessed when the World Health Organisation declared the pandemic in March 2020. Market capitalisation fell 6.66% to KSh 3.24 trillion, down from KSh 3.47 trillion, slipping below levels seen before the Kenya Pipeline Company listing and effectively erasing the gains that followed its early March debut. Consequently, year-to-date returns shrank sharply from 12.24% to 4.76%.
The market had entered the week on shaky footing, primed for a downturn. Investor wealth had ballooned from KSh 2.94 trillion to over KSh 3.5 trillion within just eleven weeks, largely fuelled by local investors as foreign players steadily exited. Safaricom’s Ziidi Trader platform, launched in February, initially drove a surge in retail participation, accounting for 55% of orders on its first day. However, its limited contribution to traded value signalled a dominance of small-scale buying, effectively offering institutional investors an exit window at peak valuations. When global pressures hit, there was little support to cushion the fall.
All key indices tumbled significantly. The NSE 10 plunged 9.02%, marking its worst performance since inception in September 2023. The Banking Index dropped 8.03%, with Thursday alone registering a 3.91% fall, its worst single-day performance since launch. The NSE 25 declined 7.49%, the NSE 20 shed 6.62%, while the NASI slipped 6.66%. Monday’s KSh 96.02 billion loss ranks among the largest single-day declines since 2008.
Despite the downturn, trading activity surged. Equity turnover jumped 133.26% to KSh 4.8 billion, while trading volumes nearly doubled to 149.58 million shares. The heightened activity amid falling prices points to large-scale institutional sell-offs rather than a passive market drift.
Among major movers, ABSA led losses among large-cap stocks, dropping 14.5% to KSh 27.20. HF Group declined 12.4%, KCB fell 10.5% to KSh 68.00, while Equity Bank and Co-operative Bank each lost 9.8%. Safaricom slipped 7.27% to KSh 28.05. Kenya Airways declined 11.6%, while Kenya Re and CIC both fell by over 10%. Gains were scarce, with only Limuru Tea and Liberty Kenya posting modest increases.
Banking stocks dominated trading, accounting for 62.63% of total turnover. KCB led activity, followed closely by Equity and Stanbic. The top five counters made up over 72% of total market turnover, reflecting heightened concentration. Safaricom remained dominant in telecoms, contributing over one-fifth of total turnover, while energy and insurance sectors played smaller roles.
Foreign investors continued to exit the market, recording net outflows of KSh 503.76 million, up from the previous week. Trading patterns mirrored geopolitical developments, with heavy selling early and late in the week, briefly interrupted by midweek optimism following reports of possible US-Iran talks, which quickly faded after Iran dismissed the claims.
Also Read: KMTC Female Student Is Found Murdered In Karatina, Nyeri County
Bond market activity also declined, with turnover dropping 22.56% to KSh 64.37 billion, while the Bond Index edged down by 0.80%. Meanwhile, derivatives trading picked up, rising nearly 40% in volume.
The sell-off has been largely driven by a global oil price shock, raising concerns over Kenya’s inflation outlook and monetary policy direction. Brent crude climbed above $106 per barrel, up 47% from pre-war levels, fuelled by escalating geopolitical tensions, including stalled US-Iran negotiations, disruptions in Iraqi oilfields, and refinery strikes in Kuwait.
Although local fuel prices remain unchanged for now, regulators noted that current pricing reflects earlier shipments before the conflict. Rising import costs are expected to be reflected in the next review, potentially pushing inflation beyond 4.3% and complicating the Central Bank’s plans for further rate cuts.
On the corporate front, Diamond Trust Bank reported a 21.4% rise in profits, surpassing KSh 10 billion for the first time, while Co-operative Bank posted a record KSh 29.75 billion in net earnings, up 16.9%. Several banks also announced increased dividends, highlighting a stark contrast between strong financial performance and falling share prices.
