The Nairobi Securities Exchange extended its positive start to 2026, with all major equity indices closing higher despite a sharp pullback in trading activity.
Data from the weekly bulletin by the Central Bank of Kenya, the week reflected consolidation after the strong opening week of the year, with gains driven by selective buying in banks, telecoms, and agriculture, while foreign investors turned aggressive sellers.
The Nairobi All Share Index (NASI), NSE 25 and NSE 20 share price indices increased by 0.93 per cent, 0.36 per cent and 1.06 per cent, respectively, during the week ending January 15. The NSE 10 increased 0.61 per cent to 2,034.91.
Market capitalisation and equity turnover increased by 0.93 per cent and 9.75 per cent, respectively, while total shares traded declined by 3.1 per cent.
The banking Index edged higher, supported by gains in KCB, Absa Coop Bank and Equity Bank, although performance across the sector was mixed. The sector contributed Sh1.33 billion, accounting for 52 per cent of total market turnover.
Safaricom remained the most actively traded counter, with Sh549.2 million in turnover, representing 21.4 per cent of the weekly value and closed 2.1 per cent higher at Sh29.70.
KCB Group followed with Sh277.5 million in turnover and a 0.75 per cent gain to Sh67.5, while Equity Group traded Sh244.2 million and closed 0.72 per cent lower at Sh69.
New Gold Issuer recorded Sh240.5 million, while Absa Bank rounded out the top five with Sh194.1 million.
Total foreign purchases stood at Sh228.6 million, while sales surged to Sh1.33 billion, resulting in a net outflow of Sh1.1 billion.
Foreign participation accounted for 31.5 per cent of total market turnover, down from the prior week, with selling pressure concentrated mid-week.
Activity in the fixed-income market accelerated significantly. Bond turnover jumped 79.19 per cent to Sh75.7 billion, from Sh42.2 billion the previous week, while the Bond Index rose 0.5 per cent to 1,163.47, pointing to firm prices amid heavier trading.
The derivatives market cooled, with 3,096 contracts traded worth Sh5.9 million, down sharply from the prior week.
In the money market, the Treasury bill auction of January 15 received bids totalling Sh30.8 billion against an advertised amount of Sh24 billion, representing a performance of 128.4 per cent.
Interest rates on the 182-day Treasury bill remained stable, while interest rates on the 91-day and 364-day Treasury bills declined.
During the week, CBK announced that remittance inflows to Kenya totalled $435.5 million (Sh55.7 billion)in December 2025 from $445.4 million (Sh57.01 billion) in December 2024, a decrease of 2.2 per cent.
Total remittances increased by 1.9 per cent in 2025 to $5.04 billion (Sh645.1 billion) compared to $4.94 billion (Sh632.3 billion) in 2024. Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments.
by VICTOR AMADALA
