[Graph in pdf]
Equities Market
NSE stocks prices were up 4.6% in the week ending 27th June 2025, strongly supported by end of quarter transactions, especially from institutional clients balancing their investment asset classes. NSE 20 stocks gained the most at 5.3% followed by NSE 10 and NSE 25 with 4.1% and 4.0% gains, respectively.
Major Price gains were on the energy and petroleum, investment services and the automobile sectors which recorded average gains of 18.0%, 6.2% and 5.6%, respectively. Eight out of thirteen sectors recorded notable gains signaling the positive outlook in the equities space as interest rates continue narrowing down.
Shares traded however, declined 16.3% w-w from 119.79Mn to 100.32Mn shares to pull down the value traded 32.6% from KES 2,465.89Mn to KES 1,661.97Mn.
The week’s average foreign participation remained low, declining to 31.9% with ma net foreign inflow of KES 121.94Mn, in relation to an average of 36.7% of KES 402.81Mn net foreign inflow traded the week before. Heavy foreign activity were mainly noted on the telecommunication sector, Safaricom.
Sector-wise, the banking sector emerged the emerged top mover with a total turnover of KES 681.80Mn from 19.84Mn shares. Increased attention was also spotted on the telecommunications (Safaricom) and the energy sectors which moved KES 530.68Mn and KES 311.07Mn from 21.73Mn and from 36.02Mn shares, respectively. On shares exchanged, the Energy, telecommunications and the banking moved the most shares in that order.
Safaricom retained the top mover position with KES 530.68Mn from 21.73Mn shares, rallied by foreigners at 66.9% of all its activities, majority of which entered the counter, resulting to a net foreign inflow of KES 190.63Mn. This pushed the counter’s price 4.2% up from KES 23.95 to KES 24.95 per share.
KCB Group took a second mover position after trading 7.39Mn shares valued at KES 336.86Mn. Increased focus on the counter saw its price jump 6.7% from KES 43.60 to KES 46.50 per share. This is partly influence by the Bank’s interest in the Ethiopia market even as it remains the largest bank in assets and regional presence.
Umeme, Kenya Power emerged as the day’s top gainer at 54.4% from KES 12.40 to KES 19.15 per share, immediately after announcing an interim dividend of UGX 222.00 or KES 7.96 per share interim dividend whose books close on 14th July for a payment on 31st July 2025.
Kenya Power was the second gainer at 31.6% gain, from KES 8.66 to 11.40 per share. This follows a positive outlook on its FY-2025 financials following the reforms started in 2022. This follows a turnaround a presidential task force’s review of power purchase agreements (PPAs) of 2022, which recommended a review, renegotiation, and standardization of PPAs, especially with independent power producers to reduce cost of operations. Refer to our snapshot on Kenya Power issued in April 2025.
[Graph in pdf]
Bonds Market
Secondary bonds trading activity were relatively high in the last week of June, trading a total of KES 66.38Bn, 6.9% lower compared to KES 71.33Bn traded the week before. The decline was occasioned by low transactions which dropped 8.6% from 1,022 to 934 deals.
Normal bonds still rallied the market at 78.8% after trading a total of KES 52.30Bn, 5.8% lower compared to KES 55.51Bn moved by same papers in the third week of June 2025. Infrastructure bond papers traded KES 14.08Bn to account for 21.2% of the week’s share.
The re-opened FXD1/2020/15, traded the most at KES 15.07Bn or 22.7%of the market value. This was as its yield to maturity (YTM) lost 17.8bps from an accepted YTM of 13.4866% to 13.3087%, to cash in for primary market investors of June 2025 who obtained the paper.
In the coming week, we expect reduced market activities in the sector following an upcoming July auction where we expect investors to take advantage of discounts anticipated for.
[Graph in pdf]
Yield Curve
The NSE yield curve was largely stable in the week with minimal movements on both the short-end and longend on specific papers.
Heavy demand for short-term papers saw the 2-year and 3-year shift upwards while reduced demand in the middle-curve paper witnessed mixed reactions/shifts.
The long-end experienced generally shifted down on continued demand from investors who missed the papers in June 2024 primary auction.
[Graph in pdf]
Interbank
Increased liquidity demand for the week, saw interbank rate edge up, albeit minimally, at 3.5bps from 9.69% to 9.72% to push the average interbank 2.2bps from 9.70% to 9.72%.
The market liquidity demand surged 68.6% week on week from KES 9.64Bn to KES 16.25Bn. This pushed hthe average market demand for cash by 424.4% from KES 4.47Bn to KES 23.43B. The uptick in liquidity demand was geared towards settling the KES 71.64Bn bond auction that happened on 23rd June among other settlements.
The above rise in liquidity demand Bank excess liquidity sink 96.2% from KES 12.9Bn to KES 0.49Bn, against a 3.25% cash reserve requirement according to the official CBK statistics.
[Graph in pdf]
Treasury Bills
T-bills auction was undersubscribed with a least amount in months, receiving KES 14.49Bn while accepting KES 14.44Bn, representing 60.2% of the government target of KES 24.00Bn per week.
Investors’ attention remained on the 364-day paper, which was oversubscribed at KES 11.84Bn or 118.4% on what remains to be its relatively good return compared to the other two papers.
Return on investments narrowed minimally at 3.0bps, 1.5bps and 1.7bps on the 364-, 182 and p91-day papers as they near accommodative government cost of borrowing of 1round 8%, 7.5% and 7.0%, respectively.
[Graph in pdf]
Currency
The Kenyan shilling remained strong in the week, trading at an average of KES 129.25 per US dollar compared to KES 129.27 per US dollar the previous week.
The shilling is largely cushioned by sufficient forex reserves, which stood at USD 10,887Mn, sufficient for 4.9 months of import cover. The reserves remain shielded by a rising foreign remittance, export receipts, and inflows from development partners.
Monthly forex remittances hit an all-time high of USD 440.08Mn in May 2025 as per the official statistics released on Friday, 20th June 2025. This represents a 4.1% month-on-month growth and an 8.8% year-on-year rise compared to USD 422.89Bn of April 2025 and USD 404.45Mn in May 2025, respectively.
