Kenya’s equities market recorded losses across its major indices in the week ended October 16, 2026, as foreign investors offloaded shares worth approximately USD 9.5 million (about KSh1.2 billion), with Equity Group, KCB Group and Safaricom among the stocks attracting significant selling pressure.
According to the latest Kenya Weekly Market Wrap by Standard Investment Bank (SIB), the Nairobi All Share Index (NASI) declined by 1.8 per cent week-on-week to 240.50 points, reflecting a broad retreat in share prices at the Nairobi Securities Exchange (NSE).
The NSE 10 index posted the steepest decline among the four major indices tracked in the report, falling 2.1 per cent to 2,678.19 points. The NSE 25 dropped 1.9 per cent to 6,828.77 points, while the NSE 20 declined by 1.5 per cent to 4,249.24 points.
Despite the weekly losses, the market remained significantly higher than it was at the beginning of the year. NASI had gained 28.9 per cent year-to-date, while the NSE 10 was up 36.3 per cent. The NSE 20 and NSE 25 had risen by 35.4 per cent and 34 per cent, respectively.
Trading activity strengthened during the week, with equity turnover increasing by 63 per cent to USD 24.6 million, indicating higher participation even as share prices weakened.
Equity Group emerged as the most actively traded counter, accounting for 24.4 per cent of total market turnover. However, its share price fell 3.8 per cent to KSh100, while foreign investors recorded net outflows of approximately USD 4.73 million from the banking group.
KCB Group was another major source of foreign investor outflows, recording approximately USD 2.61 million in net outflows. Its share price declined marginally by 0.3 per cent to KSh89.50.
Safaricom recorded a 2.4 per cent weekly decline to KSh34.90, accompanied by foreign net outflows of approximately USD 1.25 million. Diamond Trust Bank and Standard Chartered Bank Kenya also recorded net foreign outflows of USD473,800 and USD271,900, respectively.
SIB reported that foreign investor activity increased to 30.2 per cent of market activity, compared with 23.7 per cent in the preceding week. The increased participation came alongside net selling, suggesting that foreign investors were more active in the market while reducing their exposure to selected counters.
Kenya Power, meanwhile, led foreign investor buying, attracting net inflows of approximately USD84,200. Other stocks recording foreign net inflows included Car & General, Williamson Tea Kenya, Unga Group and Home Afrika.
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Express Kenya leads weekly gainers
Express Kenya was the best-performing stock during the week, gaining 5.6 per cent to close at KSh7.54. The counter was followed by Nairobi Business Ventures, which rose 3.9 per cent to KSh1.32, and Kenya Airways, which advanced 3.1 per cent to KSh5.94.
Olympia Capital Holdings gained 2.2 per cent to KSh7.50, while Sasini rose 1.3 per cent to KSh23.95.
On the losing side, Uchumi Supermarket registered the largest decline, shedding 7.9 per cent to close at KSh1.29. Longhorn Kenya fell 6.5 per cent to KSh2.61, while Sanlam Kenya declined 6.1 per cent to KSh10. Kenya Re-Insurance Corporation dropped 5.7 per cent to KSh4.14.
The declines came despite strong year-to-date performances by several counters. I&M Holdings, for instance, remained among the strongest performers in the banking sector, with its share price up 100.2 per cent since the beginning of 2026, even after a 2.9 per cent weekly decline to KSh85.
Car & General maintained its position as the NSE’s leading year-to-date gainer among the stocks highlighted by SIB, with an increase of 441.2 per cent, despite a 1.5 per cent drop during the week to KSh276.
Other notable year-to-date performers included Africa Mega Agricorp, up 356.4 per cent, Britam Holdings, up 101.6 per cent, and Shri Krishana Overseas, up 99.8 per cent.
The contrasting weekly and year-to-date figures underline the extent of gains recorded across selected counters earlier in the year, even as investors reassessed positions during the latest trading period.
Fuel prices rise as global oil costs increase
Away from the equities market, the report highlighted an increase in domestic fuel prices following the latest review by the Energy and Petroleum Regulatory Authority (EPRA).
For the October/November 2026 pricing cycle, the maximum retail price of Super Petrol increased by KSh12.93 per litre, diesel by KSh9.90 and kerosene by KSh28.49.
In Nairobi, Super Petrol was set to retail at KSh226.96 per litre, diesel at KSh227.76 and kerosene at KSh219.87.
The price increases followed higher international petroleum product prices amid continuing tensions in the Middle East. SIB noted that between August and September 2026, international benchmark prices rose across all three major petroleum products.
Super Petrol benchmark prices increased by 16.6 per cent to USD1,300.65 per metric tonne. Diesel rose by 10.1 per cent to USD1,215.83 per metric tonne, while kerosene increased by 10.8 per cent to USD1,253.50 per metric tonne.
The higher international prices translated into increased landed costs for imported fuel. The weighted average landed cost of Super Petrol rose by 11.8 per cent to USD977.55 per cubic metre, while diesel costs increased by 11.3 per cent to USD1,065.38. Kerosene costs climbed by 9.4 per cent to USD1,098.31 per cubic metre.
The Government maintained Value Added Tax (VAT) on fuel at 8 per cent during the pricing cycle. However, the report noted that fuel price stabilisation measures were not extended for October and November.
The higher pump prices could increase operating expenses for transport companies, manufacturers and other businesses that depend heavily on petroleum products. They may also add pressure to household budgets and raise distribution costs across supply chains.
QuickMart IPO targets KSh15 billion
In corporate developments, QuickMart PLC’s initial public offering (IPO) continued to attract attention as the supermarket chain prepared to raise KSh15 billion through the sale of two billion ordinary shares at KSh7.50 each.
The offer, which opened on October 5, is scheduled to close on October 30, 2026. It is being undertaken by Sokoni Retail Kenya Limited, the selling shareholder, and will represent approximately 50 per cent of QuickMart’s post-offer shareholding.
SIB noted that the transaction is structured entirely as a secondary offer for sale. This means QuickMart itself will not receive proceeds from the IPO, with the funds going to the selling shareholder.
The company’s store expansion and digital investment plans will therefore continue to depend on internally generated operating cash flows and existing credit facilities.
QuickMart operates 73 leased outlets across 16 counties and is Kenya’s second-largest supermarket chain by store count and revenue, according to the report.
Its merchandise mix is heavily weighted towards food and fresh produce, which together account for approximately 65 per cent of total sales. Food contributes about 52 per cent, while fresh produce accounts for between 12 and 13 per cent.
The retailer operates an asset-light model by leasing all its stores. SIB’s analysis indicates that new outlets can achieve earnings before interest, taxes, depreciation and amortisation (EBITDA) break-even in their first month, mature within 12 months and achieve full capital payback within two to three years.
QuickMart’s medium-term strategy is to expand its domestic footprint to 125 locations by 2030 and grow its QSOKO digital and e-commerce channel to contribute more than 10 per cent of total revenue.
SIB’s blended valuation, based on discounted cash flow, dividend discount and comparable-company valuation methodologies, estimated QuickMart’s fair value at KSh7.32 per share.
At the offer price of KSh7.50, the IPO is priced at a premium of approximately 2.3 per cent to the bank’s estimated fair value. SIB’s assessment suggests that the company’s anticipated operational growth and market position are already substantially reflected in the offer price.
Sanlam proposes insurance business restructuring
Sanlam Allianz Holdings (Kenya) PLC also announced plans to reorganise its corporate structure by transferring its long-term life insurance business from its wholly owned subsidiary, Sanlam Allianz Life Insurance (Kenya) Limited, to the parent company.
The proposed transaction would involve the transfer of the subsidiary’s entire long-term life insurance business, including its assets and liabilities, subject to the necessary regulatory approvals.
Following completion, the listed parent company would operate the life insurance business directly and change its name to Sanlam Allianz Life Insurance (Kenya) PLC. The subsidiary would surrender its licence and eventually be dissolved.
The company said the proposed restructuring would simplify the group’s corporate structure and improve operational efficiency. Existing insurance policies, shareholdings and company control are expected to remain unaffected.
The announcement comes as Sanlam Kenya’s share price registered a 6.1 per cent weekly decline to KSh10, according to SIB’s market performance tables.
As investors navigate mixed signals from the equities market, higher fuel prices and ongoing corporate developments, the coming weeks will provide further insight into trading sentiment, the reception of the QuickMart IPO and the broader effects of rising energy costs on businesses.
SIB’s weekly report indicates that, although the NSE’s major indices retreated during the latest trading week, their year-to-date gains remained substantial. The combination of increased turnover, higher foreign investor participation and net foreign selling points to an active market in which investors continued to reposition their portfolios.
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Source: Standard Investment Bank, Kenya Weekly Market Wrap, October 19, 2026.