Nairobi Securities Exchange Nears Historic KSh 3 Trillion Valuation as 2026 Trading Picks Up

By Benadeta Mwaura - Reporter

Kenya, 7 January 2026 - The Nairobi Securities Exchange (NSE) is riding a powerful rally as the year begins, with key market indicators showing broad gains and renewed investor interest after a strong performance in 2025.

At a recent session, total market capitalisation climbed to about KSh 3 trillion, a milestone level for the bourse, reflecting increased activity and confidence among domestic traders.

Trading volumes jumped sharply, with over 28 million shares exchanged and turnover rising by more than 250% compared with previous sessions, driven largely by blue-chip stocks and banking and telecom counters.

The NSE’s main indices also extended their upward trend.

The NSE All-Share Index (NASI) rose nearly 1% while the NSE 10 and NSE 25 benchmarks recorded gains, indicating broad participation across economic sectors.

Major movers included Safaricom, KCB Group, NCBA and Co-operative Bank, which dominated liquidity and contributed to the bourse’s overall momentum.

Last year’s strong performance set the stage for the current rally.

In 2025 the NSE ended on a bullish note, with the NSE 20 Share Index surging more than 50 per cent and the NASI gaining over 50 per cent as well, driven by heightened investor participation in both equities and fixed-income markets.

Part of the market’s resurgence is attributed to investors seeking higher returns from equities amid lower yields in fixed income, particularly Treasury bills and bonds, prompting a shift into stocks that offer growth potential and dividends.

Blue-chip counters such as Safaricom, Equity Group, KCB, EABL and NCBA accounted for a significant share of investor wealth gains, reinforcing their appeal as core portfolio holdings.

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Structural developments are adding fresh impetus to Kenya’s capital markets. The long-anticipated Kenya Pipeline Company (KPC) is slated to list on the NSE by March 2026, offering a new investment avenue and deepening market breadth for local and retail investors. President William Ruto has encouraged ordinary Kenyans to participate, noting that even small investors will be able to buy shares and benefit from the company’s future growth.

Meanwhile, innovative trading channels are being introduced to widen access.

From January 2026, investors will be able to buy and sell NSE shares directly via M-Pesa through the new Ziidi Trader mobile platform, a collaboration between Safaricom and the NSE designed to democratise stock market participation.

Despite strong local activity, foreign investor participation has been mixed.

While U.S. investors modestly increased their holdings of Kenyan equities and debt securities, some foreign funds have favoured developed markets with higher returns, leading to occasional net outflows. Still, trends point to growing domestic engagement in equities as confidence in the bourse rises.

Analysts point to a combination of factors lifting the NSE, robust blue-chip performance, Safaricom and major banks remain top drivers, lower returns on fixed-income assets prompting portfolio shifts to equities, and, New listings and innovative trading access expanding investor base.

While domestic liquidity and market momentum remain strong, risks such as interest rate changes, currency volatility and foreign capital movements will continue to influence trading sentiment. Nonetheless, the NSE’s strong start to 2026 and near-historic valuation mark suggest that Kenyan equities remain an attractive destination for investors seeking growth and exposure to Africa’s largest economy.