Kenya’s stock market is showing fresh signs of life after the Nairobi Securities Exchange(NSE) reported a sharp rise in earnings for the 2025 financial year, helped largely by a surge in trading activity.
Financial results released for the period ending December 31, 2025, show the exchange made a net profit of Ksh 272.2 million, more than doubling what it earned the previous year. The jump represents a 134 per cent increase, underlining a strong recovery driven by both local and institutional investors returning to the market.
At the heart of this growth was a noticeable increase in trading volumes. The equities market recorded a 37 per cent rise in turnover to Ksh 145.4 billion, pointing to renewed interest in listed shares. Meanwhile, the fixed-income segment posted even stronger numbers, with bond turnover climbing by 75.5 per cent to Ksh 2.71 trillion.
“The strong performance was supported by the increased frequency of government bond reopenings in the primary market, which boosted activity in the secondary market,” NSE said in a statement.
This heavy activity in bonds reflects how investors have been positioning themselves in a high-interest-rate environment, where government securities are seen as safer and more predictable compared to equities.
The derivatives market, which is still relatively new in Kenya, also stood out during the year. Trading volumes grew sharply, with the number of contracts rising nearly sevenfold from 6,683 in 2024 to 53,333 in 2025. This suggests that more traders are beginning to embrace derivatives either to hedge risk or to take advantage of short-term price movements.
Open interest — which shows the number of active contracts — also grew, reaching 7,620 contracts valued at Ksh 27.9 million. This was a big improvement from the 638 contracts recorded the previous year, even though the value in 2024 stood at Ksh 20.5 million.
NSE on new contracts
According to the exchange, the growth in derivatives trading was driven by the rollout of new contracts linked to key companies such as Kenya Power and Lighting Company, KenGen, Liberty Kenya Holdings, British American Tobacco Kenya and KCB’s real estate investment trust. The entry of a new market maker also helped deepen liquidity and make it easier for investors to trade.
With improved earnings, the NSE board has now recommended a dividend payout of Sh1.00 per share. This will be split into an ordinary dividend of Sh0.73 and a special dividend of Sh0.27. Shareholders on record by May 21, 2026, will receive the payment on July 31, 2026.
The performance comes against the backdrop of a gradually stabilising economy, where easing inflation and sustained government borrowing have helped revive activity in the capital markets.
Analysts say if this trend continues, the NSE could see even stronger participation, especially if more companies list and new financial products are introduced.
For now, the latest numbers paint a picture of a market that is regaining momentum, with bonds, equities and derivatives all contributing to the turnaround.
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