The Nairobi Securities Exchange (NSE) extended its upward momentum for a second straight week, gaining KSh 128.42 billion in market value and recording its strongest weekly performance since the surge seen in Week 7 of February.
The recovery reversed more than half of the KSh 231.17 billion wiped out during the sharp decline in Week 13. Total market capitalization rose by 3.89% to KSh 3,432.92 billion, up from KSh 3,304.50 billion, pushing the market above the pre-KPC listing level of KSh 3,289 billion for the first time since the downturn.
All major indices posted gains: the All Share Index climbed 3.89% to 207.01, the NSE 10 led with a 4.76% increase, the Banking Index rose 4.49% to 238.86, while the NSE 25 and NSE 20 advanced by 3.98% and 3.18% respectively.
The Central Bank of Kenya kept its benchmark interest rate unchanged at 8.75% on April 8, noting that while geopolitical tensions in the Middle East have pushed energy prices higher, inflation remains within the target range. This decision eased fears of an imminent rate hike that had unsettled markets, although it also signals a pause in the recent cycle of rate cuts. Declining lending rates and improving private sector credit growth continue to support equities.
The Kenyan shilling remained stable at KSh 129.53 against the dollar, though this stability has been supported by continued use of foreign exchange reserves. CBK reserves declined for a fifth consecutive week to USD 13.32 billion (equivalent to 5.7 months of import cover) as of April 9, marking the longest stretch of declines since late 2023. Since early March, reserves have dropped by USD 1.28 billion but remain above the statutory minimum threshold.
Top Movers
Kenya Airways topped the gainers for the second week in a row, jumping 25.91% to KSh 6.90. TPS Serena rose 8.52%, Shri Krishana Overseas gained 7.99%, TotalEnergies added 7.88%, and Sasini advanced 7.72%. Among large-cap stocks, Equity increased 7.22%, Co-operative Bank rose 7.67%, Safaricom gained 4.39%, and KCB climbed 4.03%.
On the losing side, East African Portland Cement fell 7.93%, followed by declines in Standard Group (-3.50%), Kakuzi (-3.00%), WPP Scangroup (-2.54%), and Home Afrika (-2.04%).
Market Activity
Equity turnover remained steady at KSh 2.77 billion, although trading volume declined by 4.81% to 89.6 million shares. Banking stocks dominated activity, accounting for 66.29% of total turnover, led by Equity and KCB. Safaricom’s share of trading dropped significantly compared to the previous week.
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Foreign investors continued to exit the market for the sixth consecutive week, recording net outflows of KSh 940.08 million. Despite rising prices, persistent foreign selling remains a key concern, indicating that offshore investors are still cautious.
Bond market activity declined by 9.71% to KSh 53.20 billion, with the Bond Index remaining unchanged. Meanwhile, Kenya’s Eurobond yields fell across all maturities, reflecting improved investor confidence in the country’s credit outlook.
The derivatives market saw increased activity, with contracts rising in both volume and value.
Key Drivers
The market rally was mainly driven by the Central Bank’s decision to maintain interest rates, which reassured investors amid rising oil prices. Globally, investor sentiment also improved as major markets recovered and oil prices eased to around $90 per barrel, down from peaks above $106 during the earlier selloff, although geopolitical risks remain.
Attention now turns to the upcoming EPRA fuel price review on April 15, which is expected to result in a price increase, though the recent drop in oil prices may limit the extent of the adjustment.
Corporate Developments
Jubilee Holdings released its audited financial results, while Kenya Pipeline Company announced the resignation of its Managing Director, Joe K. Sang, effective April 3, following a period marked by strong performance and a successful stock market listing.
Key Economic Indicators (Week Ending April 10, 2026)
- GDP growth slowed slightly to 4.9% in Q3 2025 from 5.0% in Q2
- Inflation edged up to 4.40% in March 2026
- Policy and interbank rates remained unchanged at 8.75%
- Treasury bill rates were largely stable
- The shilling strengthened marginally against the dollar
- Eurobond yields declined across all maturities
