The Nairobi Securities Exchange (NSE) ended the week lower, with trading volumes falling sharply as investors waited on a key monetary policy decision.
Benchmarks retreat after a strong run
The NSE All Share Index (NASI) fell 0.5% w/w to 247.32 points, and the NSE 10 (N10) dropped 0.7% to 2,750.05. The NSE 20 and NSE 25 each declined 0.9%, to 4,323.60 and 7,001.48 points respectively.
The pullback follows a robust prior week, when the indices gained between 4.1% and 5.6%. Year-to-date returns remain strong: NASI is up 32.6%, the N10 up 39.9%, the NSE 20 up 37.7% and the NSE 25 up 37.4%.
Activity tapers
Weekly turnover fell 51.0% w/w to USD 17.5 million. Safaricom accounted for 23.4% of the total, and its share price edged up 0.3% to KES 36.55. EABL also advanced, gaining 0.8% to KES 287.25.
Banking heavyweights were softer. Equity Group fell 1.4% to KES 105.50, KCB Group slipped 1.1% to KES 92.50, and DTB eased 0.1% to KES 189.00.
Small caps lead both ways
Nairobi Business Ventures was the top gainer, rising 6.2% to KES 1.37. Nation Media Group (+5.6%), Crown Paints Kenya (+5.2%), Limuru Tea (+4.3%) and BK Group (+3.9%) also featured among the best performers.
Uchumi Supermarket was the week’s biggest laggard, sliding 12.9% to KES 1.42. WPP Scangroup (-5.4%), Sameer Africa (-5.3%), Standard Group (-5.2%) and Olympia Capital Holdings (-4.7%) followed.
Foreign investors stay net buyers
Foreign investors were net buyers, with net inflows of USD 1.2 million. Foreign participation rose to 40.1% of activity, from 30.1% the previous week. Safaricom attracted the most foreign buying, at USD 1.36 million, followed by Equity Group at USD 725,300.
The NSE itself saw the heaviest foreign selling, at USD 471,100 in net outflows, despite its share price rising 1.5% on the week. KCB Group, Kenya Power and Stanbic also recorded net outflows.
Inflation edges up, but stays in target range
September inflation accelerated to 6.8% y/y from 6.6% in August, within the Central Bank of Kenya’s 2.5% to 7.5% target band. Core inflation rose to 4.0% from 3.4%, and food inflation climbed to 9.5% from 9.0%. Non-core inflation eased to 14.0% from 14.7%.
Month on month, prices rose 0.4%, with food and non-alcoholic beverages up 0.9%. Food carries a 32.9% weight in the CPI basket, so it remains the main driver of the inflation outlook.
What to watch this week
Two events stand out. The Stanbic Kenya Purchasing Managers’ Index for September is due today. On Wednesday, 7 October, the CBK’s Monetary Policy Committee announces its interest rate decision. With inflation edging up toward the upper half of the target range, the decision could set the tone for market sentiment.
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Source: NSE, Standard Investment Bank Kenya Weekly Market Wrap, 5 October 2026.