NSE Maintains Bullish Mood At first Week of 2026

NSE (Nairobi Securities Exchange) has maintained its growth momentum as trading entered its first trading week of 2026. This is even as investors take positions and re-evaluate their portfolios ahead of the inevitable market correction phase, expected to kick in as Kenya prepares for 2027 polls.

The NSE closed last week on a bullish note with the NASI and N10, gaining 2.4% each. Likewise, the NSE 20 and NSE 25 advanced by 3.0% and 2.5%, respectively.

Last year closed on a high note as NSE investors reaped from mostly inactive counters even as speculators also had a field day on counters such as Uchumi, NCBA and KenGen

Safaricom dominated the NSE market activity, accounting for 40.6% of the week’s turnover. The counter’s price function advanced by 2.1% to KSh 29.10.

Of the top traded banking stocks, Equity Group, KCB Group, and I&M Group inched upwards by 3.7%, 1.9%, and 4.9% to KSh 69.50, KSh 67.00, and KSh 44.90, respectively. KenGen rose by 7.0% to KSh 9.82.

Car& General was the week’s top price gainer

Car & General was the week’s top gainer, rallying by 12.3% to KSh 57.25. Conversely, Standard Group was the week’s worst performer, down 10.9% to KSh 5.86.

Foreign investors are back at the NSE after the Federal Reserve Rate Cut in the US in December. They are now taking profit, with net outflows of US$ 104,000 recorded at the end of last week. Equity Group led the buying charge, while Safaricom led the selling charge.

Foreign investor activity rose to 43.3% from 2.3% in the prior week.

As the week rolls on, all eyes will be on the Energy and Petroleum Regulatory Authority(EPRA) as it releases the January-February 2026 pump prices this Wednesday, 14th Jan 2026. The regulator has maintained stable fuel prices in two consecutive price cycles with expectations that there could be slight adjustments this Wednesday.

NSE PRICE GAINERS

When trading ended at the NSE last week, the top gainers were led by Car&General, Kenya Power, Coop Bank, Jubilee Holdings and KenGen.

As 2025 came to a close, indicators show that Kenya’s economic conditions continue to improve. According to the PMI survey conducted by Stanbic Bank Kenya, the index was at 53.7 – a slight dip from 55.0 recorded in November 2025.

These last two monthly PMI numbers are the highest recorded in four years.

A solid growth in purchasing activity, new orders, and business outputs, coupled with growth in the non-oil sector, largely drove the upturn in December 2025. In particular, business output grew sharply, though less than November’s five-year high, due to robust new sales volumes linked to better demand and competitive pricing from subdued costs.

The Kenya National Bureau of Statistics (KNBS) released the third-quarter GDP report, highlighting that the Kenyan economy expanded by 4.9% in 3Q25 (slightly slower than the 5.0% recorded in 2Q25) compared to 4.2% in 3Q24.

The performance was primarily supported by growth in various sectors, i.e., the Agriculture, Forestry, and Fishing sector (albeit slower at 3.2% vs 4.0% in 3Q24, squeezed by a decline in the exports of coffee, vegetables, and fruits despite an increase in milk production and the export of cut flowers), the Transportation and Storage sector (5.2% vs 4.6% in 3Q24), and the Financial and Insurance sector (5.4% vs 7.3% in 3Q24).

Additionally, the Mining and Quarrying activities and Construction sectors rebounded in the period, growing by 16.6% and 6.7%, respectively (from -12.2% and -2.6%, respectively, in 3Q24), with real estate up by 5.7% vs 4.8% in 3Q24 on increased activity.

Though resilient, the Accommodation and Food Services sector experienced a slightly slower growth (expanding by 17.7%, partly supported by increased visitor arrivals as Kenya co-hosted the African Nations Championship (CHAN) in 3Q25) compared to 3Q24 (22.9%). The December festivities also boosted hotel bookings especially within the parks and at the coastal towns.

The Manufacturing sector expanded by 2.5% vs 2.3% in 3Q24, with growth primarily driven by the non-food sub-sector, while the food sub-sector recorded a decline due to low levels of activity in the manufacture of food products (specifically sugar and soft drinks).

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