Equities Market
Equity prices posted a 3.6% decline in the last week of November, as investors continue cashing in on capital gains, especially in the banking sector. NSE 10 recorded the biggest decline at 4.2%, followed by NSE 20 and NSE 25, which fell by 3.3% and 3.9% respectively. Banking sector prices contracted by 4.1%, week on week.
Weekly volume traded shrunk by 2.6% from 115.62Mn to 112.58Mn which constituted to a decline in market turnover by 17.2% to KES 3.17Bn. The telecommunication and banking sector saw a decline in volumes traded week on week.
Foreign investor participation spiked to 38.3%, up from 22.2% the prior week. Net foreign outflows contracted from KES 834.15Mn to KES 619.89Mn. Significant foreign entries were recorded on Cooperative Bank while Safaricom, Absa Bank, EABL and KCB Group experienced notable outflows.
Trading activity remained concentrated in the banking, telecommunications, and manufacturing sectors, which collectively accounted for 90.9% of total weekly turnover and 63.5% of shares traded.
Safaricom maintained its position as the week’s top mover, posting KES 1,131.28Mn in turnover from 38.95Mn shares. The telco giant has had a decrease in its foreign outflows from KES 892.42Mn last week to KES 633.05Mn.
The company issued a green bond seeking to raise KES 15 billion on its first tranche of a KES 40Bn Medium Term Note programme. The green bond is set to offer a 10.4% coupon payment on 11th June and 11th December till maturity.
KCB Group followed with turnover of KES 506.43Mn from 8.52Mn shares. The stock was sustained by the release of its Q3-2025 results, which showed a PBT of KES 62.08Bn, an 8.1% increase from KES 57.43Bn reported in 2024. The growth was primarily driven by reduced funding costs on interest-earning assets and modest improvements in total interest income.
EABL ranked third with turnover of KES 294.18Mn, trading 1.30Mn shares during the week.
Uchumi was the week’s top gainer for the third consecutive week, surging 45.9% from KES 0.74 to KES 1.08. The rally was driven by its return to profitability, posting KES 8.80Mn in earnings for the year ended June 2025 after years of losses. The performance was primarily supported by rental income. Portland cement and Umeme Ltd followed with gains of 19.8% and 10.9% respectively.
[Graph in PDF]
Bonds Market
The secondary bonds market recorded a significant improvement, with the value traded jumping by 76.3% from KES 34.94Bn to KES 61.61Bn. This surge was accompanied by a 9.68% growth in the number of transactions from 837 deals to 918. The rise in activity was largely attributed by the entry of the two November papers, FXD3/2019/015 (8.7-year, 12.340% coupon) and FXD1/2022/025 (21.9-year, 14.188% coupon), into the secondary market.
The most traded bond during the week was the FXD1/2022/25-year bond, which posted KES 12.44Bn in turnover as investors sold the paper to investor who missed it in the primary market. The second most traded paper was the IFB1/2018/15-year, which recorded a turnover of KES 8.81Bn.
The Central Bank of Kenya re-opened two papers, SDB1/2011/030 (15.2-years, 12.000% coupon) and FXD1/2021/025 (20.4-years, 13.9240% coupon) for December’s primary auction targeting KES 40Bn. The auction date and value payment dates are set for 3rd and 8th December 2025, respectively.
[Graph in PDF]
Yield Curve
The yield curve recorded mixed movements during the week, largely influenced by the entry of the two November as well as the primary auction set for the 3rd November 2025.
The short-end curve of 8-years and below shifted upwards with yield ranges of between 6.3bps to 61.20bps due on effect from the November primary auction. This impact is expected to change to a downward shift after next week’s auction.
Mixed downward and upward shift went all the way from 9yr to 21yr paper as shown in the graph below.
In the coming week, yields around 15yrs and 20yrs are expected to spike as investors push for better discounts in the upcoming last auction of the year.
[Graph in PDF]
Interbank
The interbank rate was stable closing the week at 9.25% similar to the previous week, to stabilize the average interbank at 9.25%.
Closing interbank demand fell by 38.3%, despite the average weekly demand jumping by 120.1%, from KES 7.87Bn to KES 17.32Bn. Upticks in average liquidity demand was informed by the primary bond settlement that happened on Monday 24th November and the ripple effect of tax payments that happened the 20th of November 2025.
Bank excess reserves dwindled by 55.8%, falling from KES 17.2Bn to KES 7.6Bn, due to the above settlements.
[Graph in PDF]
Treasury Bills
The weekly T-bills auction remained firmly oversubscribed at 186.72%, attracting KES 44.81Bn in bids against the KES 24.0Bn offered, with KES 44.80Bn accepted.
Investor appetite continued to favor the 364-day paper, which achieved a strong 263.54% oversubscription, receiving KES 26.35Bn in bids of which KES 26.35Bn was taken up. The 91-day paper also posted exceptional demand, recording 448.6% oversubscription with KES 17.94Bn received and KES 17.94Bn accepted.
Conversely, the 182-day paper was undersubscribed, signaling a shift in investor preference away from the medium-term tenor in favor of shorter and longer maturities.
The rates were relatively flat indicating that returns have hit their lows and the rates are set to remain stable unless a new interest rate cut is issued in the upcoming monetary policy review due on 9th December 2025.
[Graph in PDF]
Currency
The Kenyan shilling remained broadly stable during the week, averaging KES 129.82 per USD. While the shilling showed little movement against the US dollar, it weakened by 0.4% against the euro, 1.1% against the Pound and 0.6% against the Japanese yen.
Year-to-date, the shilling has weakened slightly by 0.4% against the US dollar. Although rising foreign exchange reserves have provided support, this benefit has been partially offset by elevated external debt service obligations.
Forex reserves edged down marginally to USD 11.95Bn, equivalent to 5.2 months of import cover, well above the Central Bank of Kenya’s minimum requirement of 4.0 months. The reserves continue to be sustained by Eurobond proceeds, resilient diaspora remittances, and strong agricultural export performance.
Diaspora remittances reached USD 438.8Mn in October 2025, a slight increase from September’s level. On a year-on-year basis, remittances rose by 0.4%, up from USD 437.2Mn recorded in October 2024.
