Nairobi Stocks Surge to KSh 2 Trillion as Investor Confidence Returns

(Nairobi) – Kenya’s stock market capitalisation rebounded past the KSh 2 trillion (USD 16.21 billion) mark on the back of broad‐based gains and renewed investor confidence.

Kenya’s equity market regained momentum in the week ending May 15, 2025, as the value of shares listed on the Nairobi Securities Exchange (NSE) climbed to KSh 2.096 trillion (USD 16.21 billion), up from KSh 1.982 trillion (USD 15.33 billion) a week earlier. Improved sentiment was reflected across all major share indices, with the NSE All Share Index (NASI) rising 5.7%, the NSE 25 advancing 5.3% and the NSE 20 adding 4.3%.

Market activity intensified markedly, with total equity turnover surging 56.9% to KSh 2.24 billion (USD 17.33 million) and trading volumes almost doubling to 168.7 million shares. Though the number of individual deals dipped modestly, the increase in both turnover and traded units suggests participation was widespread among investors.

Index	Weekly Change
NSE All Share	+5.7%
NSE 25	+5.3%
NSE 20	+4.3%

In the fixed‑income market, domestic bond turnover rose 14.3% to KSh 42.3 billion (USD 327.2 million), signalling continued appetite from institutional investors. Meanwhile, Kenya’s Eurobond yields fell by an average of 43.2 basis points, underlining improved confidence in the country’s creditworthiness.

Segment	Value	Change
Domestic bond turnover	KSh 42.3 billion (USD 327.2 million)	+14.3%
Eurobond yields	–	–43.2 bps avg

Economist Daniel Kathali noted that lower international bond yields indicate investors are demanding a smaller risk premium, reflecting perceptions of reduced default risk. He attributed this shift to Kenya’s recent currency stabilisation efforts, robust foreign exchange reserves and ongoing fiscal reforms, all of which are expected to lower borrowing costs and support the economic recovery.

Kenya’s shilling showed modest strength against major currencies, trading at KSh 129.25 per US dollar on May 15, up slightly from 129.27 a week prior. The currency also edged higher against regional peers, including the Tanzanian shilling and Ugandan shilling, while holding firm against the pound sterling, euro and yen.