Foreign investors have withdrawn a net KSh17.79 billion from the Nairobi Securities Exchange (NSE) since the beginning of 2026, surpassing the outflows recorded throughout 2025 as increased selling pressure wiped KSh134.41 billion off the market’s value in just three weeks.
The latest weekly data show that foreign investors recorded net sales of KSh1.503 billion in the week ended October 16, more than double the KSh741.92 million reported in the preceding week.
During the latest week, foreign investors sold shares worth KSh1.87 billion against purchases of KSh366.99 million. Combined net outflows over the two weeks consequently reached KSh2.245 billion.
The sustained withdrawals place 2026 among the five worst years for foreign investor outflows at the NSE since 2015.
The provisional year-to-date net outflow has exceeded the KSh11.60 billion recorded in 2025 and the KSh16.52 billion withdrawn in 2024. However, it remains below the KSh29.64 billion recorded in 2018 and KSh28.63 billion in 2020.
March registered the largest monthly foreign investor outflow this year at KSh4.28 billion, followed by September, when withdrawals reached KSh3.61 billion.
Foreign investors have remained net sellers since July, pulling approximately KSh7.81 billion from the market through October 16.
Banking Stocks Dominate Trading as Market Value Falls
The NSE’s market capitalisation declined by KSh74.35 billion during the latest week to KSh4.036 trillion, marking its third consecutive weekly drop.
The NSE All Share Index fell by 1.81 per cent to 240.50 points, while the NSE 20 Share Index and NSE 25 Share Index declined by 1.54 per cent and 1.94 per cent, respectively.
Despite the falling share prices, equity turnover rose by 62.41 per cent to KSh3.176 billion. Trading volumes, however, dropped by 17.88 per cent to 75.67 million shares.
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Banking counters accounted for approximately 71 per cent of total equity turnover, with Equity Group leading activity at KSh773.97 million.
I&M Holdings followed with turnover of KSh627.32 million, while Safaricom recorded KSh540.46 million and KCB Group KSh474.14 million.
Equity Group shares declined by 3.84 per cent to KSh100, while I&M Holdings dropped by 2.86 per cent to KSh85 after reaching KSh92 earlier in the week.
The recent sell-off comes despite substantial gains recorded at the NSE since January. The market’s capitalisation remains KSh1.09 trillion above its level at the start of the year, indicating that the broader rally has persisted despite continued foreign investor withdrawals.
Bond Trading Nears 2025 Record
In the fixed-income market, weekly bond turnover fell by 25.50 per cent to KSh40.57 billion from KSh54.46 billion in the previous week.
Cumulative bond turnover nevertheless reached approximately KSh2.544 trillion, leaving the market about KSh142 billion short of the KSh2.686 trillion record registered in 2025.
The Central Bank of Kenya (CBK) also reported strong demand for government securities during recent auctions.
The Treasury bill auction held on October 15 attracted bids worth KSh68.5 billion against an offer of KSh28 billion. Meanwhile, a Treasury bond reopening received bids totalling KSh83.8 billion against KSh50 billion on offer.
Short-term government borrowing rates eased, with yields on the 91-day and 182-day Treasury bills falling to 8.750 per cent and 8.860 per cent, respectively.
Elsewhere, the Kenyan shilling strengthened slightly against the US dollar, trading at KSh129.81 compared with KSh129.94 previously.
The country’s foreign exchange reserves declined to US$14.689 billion, while Murban crude oil prices rose to US$102.39 per barrel, keeping pressure on the inflation outlook.
