NSE Launches Performance Tracker for Bank Stocks

The Nairobi Securities Exchange Plc (NSE) has launched the Banking Sector Index, a market capitalization-weighted and float-adjusted benchmark designed to provide investors with a transparent and reliable measure of the performance of the banking sector.

The new Banking Sector Index takes effect from 1st October, 2025.  The new index will track the performance of freely tradable shares of all listed banking institutions and will comprise the following counters: Absa Bank Kenya Plc BK Group Plc Diamond Trust Bank Kenya, Equity Group Holdings Plc, HF Group Plc, I&M Group Plc, KCB Group Plc, NCBA Group Plc Stanbic Holdings Plc, Standard Chartered Bank Kenya and Co-operative Bank of Kenya Ltd.

The Banking Sector Index is expected to deliver wide-ranging benefits to the market by serving as a transparent benchmark to guide portfolio allocation and investment decision-making, enhancing visibility for listed banks while supporting sector-based research and analysis.

It will equally provide a foundation for product innovation such as Exchange Traded Funds (ETFs) and other index-linked products, thereby deepening market activity and broadening investor participation.  “This milestone underscores NSE’s commitment to innovation and the continuous development of products that meet evolving investor needs while strengthening Kenya’s capital markets,” said NSE Chief Executive, Mr. Frank Mwiti.

> International Investors Troop to Malindi For Billion-Shilling Travel Deals

He added that the launch of the Banking Sector Index is fully aligned with NSE’s new strategy of driving product diversification and deepening market activity. Beyond providing investors with a reliable performance tracker, the Index will highlight the banking sector as a key driver of economic growth and create a strong foundation for future product innovation.

Between January and September 2025, the Banking Sector has demonstrated strong performance driven by strong earnings, balance sheet expansion and ongoing innovations in financial services. This robust performance highlights the sector’s critical role in fuelling activity within the capital markets and the wider economy.

The ground rules for the Banking Sector Index can be accessed through the following link: https://www.nse.co.ke/rules