NSE(Nairobi Securities Exchange) Half-Year Net profits surged 386% to KSh 736.9 million as levy transaction income from several block trades, impact of two IPOs and data income lifted the bourse’s earnings profile during this period.
The major contributor to the strong earnings at the NSE was equity transaction levy income, which jumped 476% to KSh770.5 million. The KSh 204.3 billion Safaricom block trade was a significant driver to this exceptional performance at the NSE.
Underlying market activity was considerably stronger than the headline numbers with Equity turnover up 111% even after excluding the Safaricom transaction.
According to market watchers, the NSE H1 results was not simply a one-off benefit from a large block transaction, but also reflected a broader recovery in market activity.
The improvement was further supported by bond levy income, which grew 22.4% and data income which upped 29.2%, demonstrating growth at the NSE beyond Equity trading.
At the same time, NSE maintained remarkable cost discipline. Total expenses were virtually flat at KSh 309.8 million, allowing the surge in revenue to translate into exceptional operating leverage. Annualised Return on Equity(ROE) consequently rose to 51.5%, from 14.8% in H1 2025.
NSE Experiences a Broader Capital-Market Recovery
This strongH1 performance also coincided with important developments in Kenya’s capital markets. For instance, Kenya Pipeline Company (KPC) listing ended more than a decade of an IPO drought on the Nairobi bourse, while Family Bank became another significant new listing through introduction.
These developments matter to bourse because its long-term earnings opportunity is not merely trading commissions.
A deeper capital market creates opportunities across new listings, secondary-market trading, bonds, market data, investment products and other market infrastructure services.
The return of IPO activity is therefore strategically important. More companies accessing the public market can expand the listed universe, improve investor participation and ultimately deepen liquidity.
While the Safaricom block trade, which saw the Government sell part of its stake in the telcos to Vodacom, makes the exchange’sH1 2026 financial performance exceptionally strong, the 111% growth in underlying equity turnover, alongside stronger bond activity, data revenue and new listings, provides evidence that the recovery is broader than one transaction.
Revenues more than doubled while expenses remained essentially unchanged. If higher market participation and trading activity become more structural, incremental revenue can translate disproportionately into earnings.
“Our thesis on the bourse is therefore increasingly a capital-markets growth thesis. As Kenya’s capital markets deepen, NSE sits at the infrastructure layer that monetises increased participation, liquidity, listings and market activity. The NSE H1 2026 provides an early demonstration of that operating leverage,” said CFA Dedan Maina, a Financial Consultant & Capital Markets analyst.
Will the NSE sustain this mid-year half momentum?
The key question going forward is not whether the Safaricom transaction repeats, it probably will not, but whether the broader increase in market activity, new listings and capital-market participation can sustain the bourse on a structurally higher earnings base. For long-term investors, that is the more important story.
“We have delivered an outstanding financial performance for the six months ended 30 June 2026, with Group Profit After Tax surging 386% to KSh 736.9 million, compared with KSh 151.6 million recorded in the first half of 2025,” said Frank Mwiti, the NSE Chief Executive Officer.
He said the exceptional performance at the bourse is a clear reflection of the strength and effectiveness of its strategy, demonstrating that the initiatives being implemented are translating into stronger market activity, increased investor participation, revenue growth and improved profitability.
“The results provide tangible evidence that the Exchange is on the right trajectory in delivering its strategic ambition of building a deeper, more vibrant and more accessible capital market,” said Frank Mwiti, NSE Chief Executive.
He added that performance at the bourse underscores the strength, diversity and resilience of its business model, with the core trading business delivering exceptional growth while other business lines continued to make meaningful contributions.
Equity transaction levy income surged 476% to KSh 770.5m, complemented by 22% growth in fixed-income revenue to KSh 187.3 million and 29% growth in data income to KSh 75.2 million.
The broad-based growth across all NSE businesses demonstrates the value of its diversified strategy and provides a stronger platform for sustainable and resilient growth.
Financial Highlights
During the first six months of the year, Equity turnover rose by 476% to KSh 322 billion, compared to KSh 56 billion in the corresponding period in 2025.
Trading activity was supported by increased participation from both institutional and retail investors, alongside a significant block trade involving 6.01 billion Safaricom Plc shares valued at KSh 204.3 billion, which materially boosted market liquidity and turnover.
Excluding the Safaricom block trade, equity market turnover still increased by 111% year-on-year, underscoring the broader improvement in trading activity and investor participation.
The fixed income market also maintained strong momentum, with bond market turnover increasing by 22% to KSh 1.703 trillion from KSh 1.391 trillion over the same period last year. This growth was driven by higher activity in the secondary bond market and increased government bond reopenings, which enhanced market depth and trading opportunities for investors.
The derivatives market recorded its highest performance on record, with turnover increasing by 1,774% to KSh 637 million from KSh 34 million reported in 2025. The significant growth was driven by increased retail investor participation, stronger market-making activity, and the reduction in contract sizes for single-stock futures which improved accessibility and trading volumes on the derivatives platform.
The sustained improvement in market sentiment was reflected in the performance of the exchange’s benchmark indices, all of which recorded double-digit gains during the period. The All Share Index (NASI) rose by 20.14% to 224.15, while the 20 Share Index gained 19.63% to 3,755.44. The 10 Share Index and 25 Share Index advanced by 22.61% and 21.82%, respectively, closing at 2,409.62 and 6,208.91 points
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