NSE (Nairobi Securities Exchange) is expected to benefit from a recent cut in the base rate by the US Federal Reserve as foreign investors swing back to the bourse with surplus funds in the hunt for returns in frontier markets, the Nairobi bourse included.
At its December 9-10th meeting, the Federal Reserve cut the base rate to the 3.50%-3.75% range from the first cut of 4-4.25% in September 2025 and 3.75% to 4.00% range at the October meeting.
“US Treasury Securities will continue to earn low yields, so surplus from their equity markets will most likely be channelled to frontier markets, “said Dedan Maina, a Certified Financial Analyst.
Safaricom is one such counter with huge foreign investor participation, who do not always base their decisions solely on fundamentals but also on ride on momentum created by speculative counters, such as what happened with Uchumi.
“Foreign investors can trade on any counter after reading the room first, “added Maina.
Uchumi shares price have begun to ease from a high of KSh 1.92 this Wednesday to KSh 1.59 when trading opened this morning.
Market insiders disclosed that discerning investors who rode the speculative sentiments and possible manipulative activities at the counter, made their money, and are now taking profits.
According to a research note by Standard Investment Bank(SIB), the NSE closed the month of November on a bearish note with the broad market return declining by 3.8%.
NSE Key Indices Drop in November
The key indices, N10, NSE 20, and NSE 25 eased by 3.2%, 2.1% and 3.6% respectively – likely on profit taking and portfolio rebalancing initiatives.
As expected, profit-taking activities by investors – to realize some of the gains booked in the prior four quarters – remained a key theme in November.
Foreign investors registered net outflows of US$ 23.4million in November.
Safaricom dominated trading activity at the NSE, accounting for 35.3% of the month’s turnover. The counter’s price, however, fell 5.0% to KSh 28.75.
The top traded banking stocks accounted for 35.2% of the month’s turnover, with KCB Group leading as its share price fell 4.5%.
Uchumi was the month’s top gainer with a 200.0% price appreciation to KSh 1.08.
Williamsons Tea led the losers with a 20.0% price decline to KSh 156.00.
During November, Sanlam Kenya Plc changed its name to Sanlam Allianz Holdings Kenya Plc following the shareholders’ approval at the Extra-Ordinary General Meeting held on 9 October 2025.
KCB Group Plc published a public announcement informing shareholders that it has agreed to acquire a minority stake in PesaPal Limited, a licensed payment service provider. The Group’s Board notes that the strategic investment aims to foster innovative payment solutions for Kenya’s small and micro enterprises, creating value for shareholders. The deal is contingent on standard conditions, including regulatory approval from the Central Bank of Kenya.
In November, Safaricom ignited the market with announcement of its first tranche of the KSh 40.0billionmedium-term note (MTN) programme, kicking off with a 5-year KSh 15.0billion fixed-rate green note.
The paper, which was oversubscribed and raised KSh 20 billion through a green shoe option of KSh 5.0billion, has its proceeds earmarked for financing and/or refinancing the portfolio of Eligible Green Projects as outlined in Safaricom’s Green Project Categories set out under its Sustainable Finance Framework.
The green notes are classified as a senior unsecured instrument that will provide a fixed interest rate of 10.40% per annum. Markedly, interest earned on these green bonds is tax-exempt under Kenyan law, a sweetener raised investor interest in the paper.
The green bond saw huge demand from investors and large institutions that are keen on increasing their exposure/asset allocation to ESG-related fixed income securities.
The offer closed on 5th December 2025, with the listing date slated at the NSE slotted for 16th December 2025.
On 26 November 2025, the NSE halted trading in the shares of East African Portland Cement PLC following the circulation of unverified market information regarding a potential share transfer between Kalahari Cement Limited and National Social Security Fund. Kalahari Cement Limited, later in the day, published a notice of intention.
Also in November, TPS Eastern Africa Plc issued a profit warning for the financial year ending 31st December 2025. The projected decline in Profit After Tax is primarily attributable to a significant unrealized foreign exchange gains recognized in 2024 on revaluation of foreign currency-denominated loans and lease liabilities, which is not expected to recur in the current year.
Also issuing a profit alert was Kenya Airways Plc for the financial year ending 31st December 2025 on the back of three Boeing 787-8 Dreamliners which have resulted to reduction in capacity and drop in passenger numbers.
ALSO READ: What Investors Expect at NSE in November
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