NSE Stocks Fall as Foreign Investors Pull KSh737 Million from Market

Kenya’s equities market closed the week on a bearish note as key stock indices declined, trading activity slowed and foreign investors recorded net outflows of approximately KSh737 million, according to the latest Kenya Weekly Market Wrap by Standard Investment Bank (SIB) dated October 12, 2026.

The Nairobi All Share Index (NASI) fell by 1.0 per cent week-on-week to 244.93 points, while the NSE 10 Share Index declined by 0.6 per cent to 2,734.60 points. The NSE 20 Share Index shed 0.2 per cent to 4,315.49 points, while the NSE 25 Share Index dropped by 0.5 per cent to 6,964.04 points.

The declines came despite strong year-to-date gains across the indices, reflecting a market that has experienced substantial appreciation in 2026 but faced renewed selling pressure during the week under review.

The NASI remained up 31.3 per cent since the beginning of the year, while the NSE 10 had gained 39.2 per cent. The NSE 20 was up 37.5 per cent, and the NSE 25 had advanced by 36.6 per cent.

Market turnover declined by 14.4 per cent week-on-week to approximately $14.4 million, indicating reduced trading activity. Nation Media Group accounted for 18.1 per cent of total turnover, making it the most actively traded stock during the period.

The media company’s shares rose by 2.3 per cent to close at KSh15.40, extending its year-to-date gain to 33.3 per cent. The stock’s performance contrasted with the broader market decline, highlighting differences in investor demand across listed companies.

I&M Holdings emerged as the week’s strongest performer among the listed stocks tracked in the report, gaining 6.1 per cent to close at KSh87.50. The banking group’s shares have now more than doubled in value since the beginning of the year, recording a year-to-date gain of 106.1 per cent.

Other gainers included Standard Group, whose share price rose by 3.2 per cent to KSh6.40, and Sanlam Kenya, which advanced by 2.4 per cent to KSh10.65. Nation Media Group gained 2.3 per cent, while Flame Tree Group rose by 1.9 per cent to KSh2.11.

On the losing side, Nairobi Business Ventures recorded the steepest weekly decline, shedding 7.3 per cent to close at KSh1.27. The company’s share price was down 13.6 per cent since the start of the year.

Africa Mega Agricorp fell by 5.9 per cent to KSh329, while Olympia Capital Holdings declined by 4.7 per cent to KSh7.34. Eveready East Africa lost 4.0 per cent to close at KSh0.96, and Car & General dropped by 3.3 per cent to KSh280.25.

Despite the weekly declines, several counters continued to post substantial year-to-date gains. Car & General remained the market’s strongest performer on this measure, with its share price up 449.5 per cent. Africa Mega Agricorp followed with a 366.7 per cent gain, while I&M Holdings was up 106.1 per cent. Shri Krishana Overseas had gained 104.7 per cent, and Britam was up 100 per cent.

Eveready East Africa was the weakest performer year-to-date, with its share price down 29.9 per cent. WPP Scangroup had declined by 24.7 per cent, Umeme by 22.3 per cent, Home Afrika by 17.9 per cent and Nairobi Business Ventures by 13.6 per cent.

Foreign investors turn net sellers

Foreign investors were net sellers during the week, recording net outflows of $5.7 million, equivalent to approximately KSh737 million at an indicative exchange rate of KSh129.2 to the dollar.

The outflows marked a shift in investor positioning, with foreign investor participation in total market activity falling to 23.7 per cent from 40.1 per cent in the preceding week.

Safaricom attracted the largest foreign net inflows, receiving approximately $1.36 million. Equity Group followed with $724,000, while East African Breweries received $32,800. Car & General and Eaagads also recorded smaller net inflows of $7,700 and $1,100, respectively.

However, foreign buying did not prevent declines in some of the market’s most actively traded stocks. Safaricom shares fell by 2.2 per cent to KSh35.75, despite attracting the largest net foreign inflows. The telecommunications company retained its position as the market’s largest listed company by market capitalisation, at approximately $11.03 billion.

Equity Group shares declined by 1.4 per cent to KSh104, even as the counter attracted $724,000 in net foreign inflows.

The Nairobi Securities Exchange itself recorded the largest foreign net outflows, at approximately $470,300. KCB Group followed with outflows of $201,500, while Kenya Power recorded $88,800 in net outflows. Stanbic Holdings and BK Group recorded outflows of $37,700 and $32,800, respectively.

KCB Group shares fell by 3.0 per cent to KSh89.75, while Kenya Power declined by 2.2 per cent to KSh22.35. Stanbic Holdings lost 1.8 per cent to close at KSh275.50.

Business conditions improve despite persistent cost pressures

Outside the equities market, Kenya’s private sector recorded a modest improvement in business conditions in September, although rising operating costs continued to constrain production.

The Stanbic Purchasing Managers’ Index (PMI) rose to 51.3 in September from 49.7 in August, moving above the 50-point threshold that separates expansion from contraction.

According to the survey cited in the SIB report, the improvement was driven by stronger customer demand, increased sales and a fourth consecutive monthly rise in new orders.

Businesses responded to the increased workload and expectations of future demand by expanding employment, increasing purchasing activity and rebuilding inventories of inputs.