[Graph in pdf]
Equities Market
Stock prices edged higher in the week ending 26th September 2025, attracting 2.5% on average, supported by improved market activity from local investors. NSE 10 stocks gained the most at 3.7% followed by NSE 25 and NSE 20 which saw 3.0% and 2.6% upticks, respectively.
Major gains were noted on the Construction, the investment and the Insurance sectors which recorded 3.9%, 3.6% and 3.2% upticks, respectively. The agriculture, the banking and telecommunication sectors recorded gains of 2.9%, 2.7% and 2.5% gains, respectively.
Foreign activity sunk to a low of 9.9% on average with a 98.6% drop in net foreign outflows to KES 41.90Mn compared to an average of 40.6% of heavy net foreign outflows of KES 2.96Bn recorded in the third week of September 2025.
Shares traded improved 11.5% from 153.70Mn to 171.40Mn shares to push the week’s value 6.1% up from KES 5.33Bn to KES 5.66Bn. Heavy activities were noted on the banking sector which changed hands KES 4.32Bn from 72.46Mn shares to account for 76.4% and 42.3% of the market turnover and volumes traded. As such, banks occupied four out of five positions in the top five movers’ list.
Market attention also remained in the telecommunication and the energy sectors which moved KES 644.45Mn and KES 228.80Mn turnovers or 11.4% and 4.0% of the market turnovers, respectively.
KCB Group emerged the week’s top mover with KES 2.985.59Mn after trading 52.51Mn shares to represent 52.8% and 30.6% of the market value and shares traded. Local interest on the counter saw its price jump 6.1% from KES 53.75 to KES 57.00 per share. Its foreign participation sunk from 28.4% to 3.9%.
Standard Chartered Bank Kenya took third mover position, trading KES 605.18Mn from 2.12MN shares whose price rose marginally from KES 284.00 to KES 285.00 per shares, on improved foreign activity.
Equity Group and Diamond Trust Bank took fourth and fifth top mover positions after exchanging KES 255.56Mn and KES 138.65Mn turnovers, respectively.
Safaricom took top second mover position with KES 644.45Mn value after changing hands 22.02Mn shares. The counter’s price attracted 2.4% from KES 28.70 to KES 29.40 per share despite a decline in foreign activity from 86.1% to 34.7% week on week.
Crown Paints emerged the week’s top gainer at 15.4% from KES 49.40 to KES 57.00 per share after trading 9,811 shares only. CIC Group came second with 13.7% gain from KES 4.32 to KES 4.91 per share on better prospects of better H2-2025 performance.
[Graph in pdf]
Bonds Market
Secondary bonds value traded improved 3.4% from KES 55.40Bn to KES 57.26Bn despite a marginal drop in the number of deals declining from 1,069 to 974 deals.
The on the run paper FXD1/2022/25 re-opened in September 2025 emerged the week’s top mover with KES 11.83Bn, after its yield to maturity (YTM) dropped by 48.0bps from 13.8472% to 13.3670% and 77.5bps down from the 14.1423% accepted in the primary.
IFB1/2022/19 paper, re-opened in August 2025, retained the second mover position for the second week consecutive after trading KES 7.50Bn while it’s YTM improved up 10.4bps from 13.0765% to 13.1804%.
In the coming week, we expect the market activity to improve further supported by the on the run papers, re-opened in September.
[Graph in pdf]
During the week, the Central Bank of Kenya, acting as the government’s fiscal agent, re-opened two papers, FXD1/2018/015 (7.7 years to maturity) and FXD1/2021/020 (15.9-years to maturity) for October’s auction, seeking KES 50 billion from the market. The paper’s auction date is scheduled for 15th October 2025.
[Graph in pdf]
Yield Curve
The yield curve experienced mixed movements during the week, with the short-end and the middle curve remaining quite stable.
The long-end however shifted up right from the 14-year paper to the 22-year papers, with the curve widening the faster progressively. The papers above 20-years to 22-years recorded higher upward shifts of 130.7bps, 143.8bps and 144.4bps foe the 20-year, 21-year and 22-year papers respectively.
In the coming first week of October, we anticipate the yields to relatively remain stable on the short-end to the middle curve while yields on the long-end are projected to narrow down.
[Graph in pdf]
Interbank
Interbank rate remained relatively stable in the week going up marginally from 9.43% to 9.48% to push the average interbank 0.3bps higher to 9.48%.
Average liquidity demand almost tripled from KES 5.52BN to KES 14.80Bn as investors sought for liquidity to settle the September’s primary bond value payment. Week on week however, liquidity demand dropped 10.8% from KES 12.22Bn to KES 10.90Bn.
\Bank excess reserves further contracted in the week from KES 11.10Bn to KES 2.40Bn impacted the primary auction value payment of KES 61.44Bn which happened on Monday, 22nd September 2025, for September’s second primary auction.
[Graph in pdf]
Treasury Bills
Weekly treasury bill auction was undersubscribed with a total of KES 15.09Bn while the government accepting 14.98Bn to represent a 62.4% performance rate against a KES 24.00Bn weekly target.
The undersubscription followed low maturities of KES 9.98Bn due on 29th September 2025, of which KES 9.84Bn will be re-invested back.
Returns on investment across the three papers dropped minimally at 3.2bps, 2.5bps and 0.4bps to 7.9143%, 7.9851% and to 9.5330% on the 91-, 182-, and 364-day papers, respectively.
We anticipate further rate declines across the three papers though at below around 10.0bps. In the coming week, we expect yet another week undersubscriptions, on low maturities of KES 18.55Bn maturing on 6th October most of which will be re-invested back.
[Graph in pdf]
Currency
The shilling was relatively stable in the week trading at an average of KES 124.25 per US dollar compared to KES 129.24 recorded the week before. Against the British pound, the euro and the Japanese yen, the shilling gained 1.4%, 0.8% 0.9% to KES 172.88, to KES 151.04 and to KES 86.49 per pound, euro and yen, respectively.
Forex reserves slowed down 1.2% to USD 10,735Mn enough for 4.7-months of import cover compared to KES USD 10,861Mn of 4.8-months of import cover recorded the week before.
August 2025 forex reserves rose 4.2% to USD 427.20Mn in compared to USD 410.09Mn receipted in July 2025. Cumulative forex remittances inflows for the 12-months ending August 2025 were up 9.4% to USD 5.08Bn from that of USD 4.64Bn.
