The Nairobi Securities Exchange (NSE) experienced a historic and exceptionally bullish year in 2025. Following a period of recovery in 2024, the market entered a high-growth phase, with investor wealth (market capitalization) surging by over KSh 1 trillion.
By the end of December 2025, the market reached multi-year and, in some cases, record highs, driven by aggressive interest rate cuts by the Central Bank of Kenya (CBK) and stellar corporate earnings.
Key Market Indicators
The 2025 performance was characterized by double-digit gains across all benchmark indices, making it one of the best-performing years in 20 years.
The table below shows the performance of the indexes.
| Index | Closing Points (Dec 2025) | Annual Gain (%) | Highlights | ||
| NASI (All Share) | 186.58 | +51.1% | Strongest performance since its 2008 launch. | ||
| NSE 20 | 3,139.19 | +56.1% | Highest annual gain since 2003. | ||
| NSE 25 | 5,096.68 | +49.8% | Driven largely by blue-chip and banking stocks. | ||
| NSE 10 | 1,965.20 | +50.9% | Tracks the 10 most liquid blue-chip companies. | ||
Top Performance Drivers
Several key macroeconomic and market developments powered this impressive rally:
- Monetary Policy Easing: The Central Bank of Kenya (CBK) reduced the Central Bank Rate (CBR) from 11.25% in January to 9.00% by December. As a result, Treasury Bill yields declined, encouraging investors to move funds from fixed income into the stock market, where there was greater opportunity for growth.
- Robust Corporate Earnings: The banking sector stood out, with Equity Group and I&M Group posting strong net earnings growth of 32% and 28%, respectively, in the first nine months. This kind of performance signaled solid fundamentals for investors.
- Market Reforms: The Nairobi Securities Exchange (NSE) introduced single-share trading, eliminating the minimum 100-share lot rule. This move made it much easier for retail investors like you to participate and increased overall market liquidity.
- Stable Currency: The Kenya Shilling stayed steady, averaging around 129 to the U.S. dollar throughout the year. This stability helped restore foreign investor confidence and contributed to a favorable investing environment.
Together, these factors created a supportive backdrop for the market’s strong performance, making it an exciting time for both new and experienced retail investors.
Top Gainers vs. Losers
The year was “broad-based,” meaning 54 out of 60 active counters recorded gains.
Top Gainers
- Uchumi Supermarket (+505%): Led the market in percentage gains from a low base.
- Sameer Africa (+486%): Benefited from a strategic shift toward property and logistics.
- Kenya Power (+184%): Reflected a major operational turnaround and improved earnings.
- NSE PLC (+237%): The exchange’s own share price soared due to increased trading volumes.
Top Losers
- Umeme Limited (-53%): Hit by uncertainty regarding the expiry of its concession in Uganda.
- Williamson Tea (-34%): Though this was partially a technical adjustment due to a 1:1 bonus share issue.
- Nation Media Group (-19%): Continued to face headwinds in the traditional media sector.
Sector Summary
Financials
Banks and insurance firms were the primary drivers of market gains in 2025. This performance was underpinned by a recovery in earnings, a rise in interest income, and ongoing regional expansion efforts. These factors contributed to improved profitability and investor confidence across the sector.
Telecommunications
Safaricom played a pivotal role in anchoring the market, benefiting from consistent cash flows. The growth of M-Pesa and increased data revenues further strengthened the company’s position, making telecommunications one of the standout sectors for the year.
Utilities & Energy
Kenya Power and KenGen experienced strong rebounds in 2025, fueled by tariff adjustments and optimism surrounding restructuring efforts. These changes led to improved financial performance and renewed attention from market participants.
Industrials & Manufacturing
Cement, automotive, and consumer manufacturing stocks saw notable gains during 2025. The sector benefited from increased infrastructure spending and a recovery in demand, which supported growth and enhanced market returns for these companies.
Turnaround & Small Caps
Several previously distressed counters delivered outsized gains, driven by restructuring expectations and speculative activity. This trend highlighted the potential for turnaround stories within the small-cap segment, attracting interest from investors seeking high growth opportunities.
Top NSE Stocks
| Rank | Company | 2025 Performance | Key Growth Drivers |
| 1 | Sameer Africa | 400%+ | Speculative turnaround, low base effect |
| 2 | Uchumi Supermarkets | 300%+ | Restructuring optimism |
| 3 | Home Afrika | 200%+ | Real estate recovery |
| 4 | NSE PLC | 230%+ | Higher market activity |
| 5 | Kenya Power | 150%+ | Tariff reforms, restructuring |
| 6 | Olympia Capital | 150%+ | Industrial recovery |
| 7 | East African Portland Cement | 200%+ | Infrastructure demand |
| 8 | Car & General | 140%+ | Diversified industrial demand |
| 9 | KenGen | 130%+ | Energy demand, pricing |
| 10 | Kenya Re | 100%+ | Insurance sector rebound |
2026 Forecast
Kenya begins 2026 with modest, stable economic growth, recovering investor confidence after earlier debt concerns. Growth is supported by infrastructure, tourism, ICT, and financial services, with GDP projected at 5.5%. Inflation remains steady between 4%–5%, and the central bank has reduced the policy rate to 9% to support lending.
Public debt stays elevated at 65.7% of GDP but is seen as sustainable; budget deficits are targeted at 4.3%–4.8%, relying on tax reforms and digital revenue collection rather than new hikes. Recent Eurobond issuances have eased near-term default risks through refinancing.
The banking sector is resilient but faces high non-performing loans, especially in trade, manufacturing, and real estate. The Nairobi Securities Exchange is led by banks, telecoms, and energy stocks, with SOE reforms viewed as key for market development.
Agriculture, buoyed by good weather, grows 6% year-on-year; renewable energy makes up nearly 90% of electricity generation, mainly geothermal and hydro. Tourism nears pre-pandemic levels, and ICT benefits from widespread mobile payments.
Key risks include political uncertainty before the 2027 election, possible climate shocks, challenges in fiscal consolidation, and high debt service limiting development spending.
The NSE delivered exceptional returns in 2025 — but not every investor benefited equally. We provide personalized, independent and unbiased investment guidance to help you position correctly for market cycles, not headlines.
