Safaricom’s dividend announcement has delivered one of the strongest weeks ever at the Nairobi Securities Exchange (NSE), sending share prices higher and pushing the value of the market to a historic peak.
The telco declared an interim dividend of Ksh 0.85 per share, its highest for the period, sparking a rally that added Sh63 billion to investor wealth in a single trading session. The payout is 54.5 per cent higher than what shareholders received during the same period last year and signalled renewed confidence in blue-chip stocks.
The surge lifted total market capitalisation to Ks h3.2 trillion, the highest level since the NSE was established. Investors piled into Safaricom shares, which rose 4.41 per cent to close at Ksh 31.95 after touching an intraday high of Sh32.50, a price last seen in August 2022.
Safaricom dominated trading activity, with 19.2 million shares changing hands valued at Ksh 614.1 million. The counter accounted for nearly half of all equity turnover at the exchange, underlining its influence on overall market performance.
At the close of trading, Safaricom’s market value stood at Ksh 1.279 trillion. In a statement to investors, the company said the dividend reflected its focus on balancing shareholder returns with long-term growth.
The dividend will be paid to shareholders on the company’s register as at February 25, 2026, with payments expected on or around March 31, 2026.
The rally came on the back of strong half-year results by Safaricom, which reported an 11.1 per cent increase in service revenue to Sh200 billion in the six months to September 2025. Growth was driven mainly by mobile money and data services. Net profit rose 52.1 per cent, helped by higher usage and tighter control of operating costs.
Market indicators also posted fresh milestones. The NSE All Share Index closed at 202.31 points, crossing the 200 mark for the first time since its launch in 2008. The NSE 25 and NSE 20 indices also ended the week higher.
By the end of the week, overall market capitalisation had risen by 3.73 per cent. However, equity turnover and total volumes traded declined as some investors held on to shares ahead of dividend payments.
Other stocks that recorded notable gains during the week included Standard Media Limited, Carbacid, Nairobi Business Ventures, Home Afrika and Total.
Away from equities, the money market remained active. The Treasury Bill auction held on February 5 attracted bids worth Ksh 64.3 billion against an advertised Ksh 24 billion, translating to a subscription rate of 267.9 per cent. This came even as yields on short-term Treasury Bills declined.
In the bond market, turnover in the secondary market fell to Ksh 64.1 billion from Ksh 67.6 billion the previous week. Kenya’s Eurobonds also strengthened, with yields falling slightly, supported by stable credit ratings from Moody’s, S&P and Fitch.
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