NSE (Nairobi Securities Exchange) concluded both June and the second quarter of 2026 with impressive gains, reinforcing the strength of the ongoing market rally. While performance has become increasingly selective across individual counters, the broader market continues to benefit from sustained investor confidence, particularly in banking and quality industrial stocks.
Among individual counters at the NSE, Car & General emerged as the month’s best performer, advancing 48.26%, followed by I&M Holdings (36.95%) and Family Bank (34.44%). The strong showing by banking stocks continues to demonstrate sustained institutional interest in the sector.
On the downside, Sasini share prices fell 13.49%, followed by Liberty Kenya by 9.70%, and the Absa NewGold ETF which fell 9.23%, the largest recorded decline during the month.
The benchmark indices also closed higher thus NASI 8.97%, NSE 20 up 6.90%, NSE 10 up 11.83% and NSE 25 index which closed June by rising 9.72%. The Banking Sector Index was up 9.26%
According to Dedan Maina, an investment analyst at Ketu Capital, the bourse gains highlight broad market strength despite increased profit-taking in selected counters.
“The second quarter was particularly remarkable, with the bourse adding approximately KSh 531.01 billion in shareholder wealth over the three-month period. This substantial increase reflects improving investor sentiment, stronger corporate earnings expectations, and sustained capital inflows into quality businesses,” said Maina.
The quarter’s standout performers were Car & General, which appreciated 82.88%, Kapchorua Tea 44.72%, and I&M Holdings 43.00%.
Conversely, Flame Tree Group was down 26.36%, SanlamAllianz declined by 17.36%, and Uchumi Supermarket declined by 17.16%), all ranked among the weakest performers at the NSE.
The strong performance of the NSE 10 and Banking Index further illustrates that investor capital has largely concentrated in fundamentally strong, liquid counters.
NSE Market Outlook
“The first half of 2026 has demonstrated that the Kenyan equity market remains firmly in a bullish phase. However, the character of the rally is evolving. Broad-based gains are gradually giving way to more selective stock picking, with investors rewarding companies that continue to deliver strong fundamentals and earnings prospects,” said Maina.
While the long-term outlook remains constructive, elevated prices across several counters call for greater investment discipline. Rather than chasing momentum, long-term investors should focus on preserving liquidity, maintaining quality positions, and patiently waiting for periods of consolidation or market weakness before deploying additional capital.
Maina warns that as the election cycle approaches, market volatility is likely to increase, creating tactical opportunities for disciplined investors. Patience and selective accumulation will remain key drivers of long-term portfolio performance.
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