NSE Market Sheds 2.8% as KSh42 Billion Kenya Pipeline Trade Dominates Turnover

Kenya’s equities market came under pressure in the week ended October 23, with major market indices declining as foreign investors withdrew funds, while a KSh42 billion block trade in Kenya Pipeline Company (KPC) accounted for the bulk of trading activity at the Nairobi Securities Exchange (NSE).

According to the latest Kenya Weekly Market Wrap by Standard Investment Bank (SIB), the Nairobi All Share Index (NASI) fell by 2.3 per cent week-on-week, while the NSE 25 declined by 2.8 per cent. The NSE 10 recorded the steepest drop among the major indices, shedding 3.5 per cent, while the NSE 20 eased by 1.7 per cent.

The declines came despite a significant increase in reported market turnover, which rose to USD348.3 million, representing a 1,324.7 per cent increase from the previous week. The surge was largely attributable to a KSh42 billion block trade in KPC, which accounted for 93.4 per cent of total turnover during the week.

KPC shares emerged as the market’s strongest performer among the leading movers, rising 17.2 per cent to close at KSh10.55. The counter was both the top mover by trading activity and the leading gainer for the week, with turnover of approximately USD327.9 million, according to SIB.

The transaction highlights how a single large trade can significantly influence headline market activity, even when the broader market is experiencing price declines. Excluding the exceptional activity surrounding KPC, the week’s performance was characterised by weakness in several major counters, particularly telecommunications and banking stocks.

Safaricom shares fell 4.6 per cent to KSh33.30, while KCB Group declined 4.7 per cent to KSh85.25. Equity Group lost 2.5 per cent to close at KSh97.50, while Diamond Trust Bank (DTB) edged down 0.3 per cent to KSh186.25.

Standard Group recorded the largest decline among the stocks highlighted by SIB, losing 8.2 per cent to close at KSh5.82. Other notable laggards included Express Kenya, which dropped 6.9 per cent to KSh7.02, Family Bank, which declined 6.7 per cent to KSh25.80, Home Afrika, which fell 6.5 per cent to KSh1.00, and Olympia Capital Holdings, which shed 6.4 per cent to KSh7.02.

The sell-off in banking stocks came despite their strong cumulative performance over the year. Equity Group remained up 46.1 per cent year-to-date, while KCB Group had gained 29.7 per cent and DTB was up 62.7 per cent. Safaricom retained a 17.5 per cent year-to-date gain, notwithstanding its weekly decline.

Foreign investors withdraw KSh1.2 billion equivalent

Foreign investors were net sellers during the week, recording net outflows of USD9.4 million, according to SIB. Their participation in the market increased, however, with foreign investor activity rising to 38.4 per cent from 30.2 per cent in the preceding week.

Safaricom attracted the largest foreign net outflows, at approximately USD5.0 million, followed by KCB Group at USD2.4 million and Equity Group at USD1.6 million. The Nairobi Securities Exchange also recorded foreign net outflows of approximately USD225,200, despite its share price gaining 5 per cent during the week.

On the buying side, Kenya Power led foreign net inflows, attracting approximately USD77,700. Carbacid Investments followed with USD32,100, while Standard Chartered Bank Kenya attracted USD25,500. East African Breweries Limited and Liberty Kenya Holdings recorded smaller inflows of USD3,700 and USD2,200, respectively.

The combination of rising foreign participation and net selling points to increased activity by overseas investors alongside a preference to reduce exposure to selected large-cap stocks. However, the weekly figures alone do not establish whether the withdrawals reflect a broader change in investment strategy or short-term portfolio adjustments.

Smaller counters buck the market trend

Although the major indices declined, several smaller counters posted gains during the week.

Uchumi Supermarket rose 8.5 per cent to KSh1.40, while the NSE’s own shares gained 5 per cent to KSh31.50. Longhorn Publishers advanced 3.1 per cent to KSh2.69, and Africa Mega Agricorp rose 2.6 per cent to KSh330.

The performance of Africa Mega Agricorp stands out against the broader market decline, with the counter recording a year-to-date gain of 368.1 per cent. Car & General remained the NSE’s strongest performer on a year-to-date basis among the stocks highlighted in SIB’s report, having gained 423 per cent despite a 3.4 per cent weekly decline to KSh266.75.

Britam also maintained strong year-to-date growth of 102.7 per cent, while I&M Holdings was up 91.4 per cent. These gains indicate that the market’s performance has remained uneven across counters, with substantial differences between individual stocks and the broader indices.

On the downside, Eveready East Africa was the weakest performer year-to-date among the listed counters highlighted by SIB, having declined 35.8 per cent to KSh0.88. WPP Scangroup was down 27.5 per cent, while Umeme and Home Afrika had lost 25.6 per cent and 25.4 per cent, respectively.

Economy expands 5.1% amid rising energy costs

Beyond the equities market, SIB’s report highlighted continued economic growth alongside mounting cost pressures for households and businesses.

Kenya’s economy expanded by 5.1 per cent in the second quarter of 2026, up from 4.9 per cent in the corr