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.
However, the improvement in demand did not translate into higher overall output. Business output contracted for the seventh consecutive month, although the rate of contraction was the slowest recorded during that period.
Companies continued to face higher fuel, transport and agricultural costs, alongside supply shortages that limited their ability to convert new orders and sales into production.
The survey also indicated that output price inflation accelerated to its second-fastest pace since November 2023 as businesses passed elevated input costs on to consumers.
The figures point to a mixed operating environment for Kenyan businesses: demand and order books are improving, but supply-side constraints and higher costs remain significant obstacles to a broader recovery in production.
CBK retains benchmark rate at 8.75 per cent
The Central Bank of Kenya maintained its benchmark interest rate at 8.75 per cent at its latest Monetary Policy Committee meeting, according to the report.
The decision came as annual inflation rose to 6.8 per cent in September, driven by higher fuel and processed food prices. Inflation nevertheless remained within the Central Bank’s target band.
The CBK also raised its forecast for Kenya’s economic growth in 2026 to 5.0 per cent, citing strong performance in the industrial and services sectors, continued growth in private-sector credit and improvements in commercial banks’ asset quality.
Private-sector credit growth increased to 10.6 per cent in September from 10.3 per cent in August, suggesting a modest acceleration in lending to businesses and households.
Meanwhile, the ratio of non-performing loans to gross loans declined to 13.9 per cent in September from 14.8 per cent in June. The reduction points to an improvement in reported asset quality, although the level of non-performing loans remains an important indicator for the banking sector.
The MPC said it would continue monitoring developments in global oil prices and the potential secondary effects on inflation, alongside changes in the domestic and international economic environment.
The committee is scheduled to meet again in December 2026.
Quickmart IPO targets KSh15 billion
The capital markets remained active despite the weekly decline in share prices, with Quick Mart PLC’s initial public offering (IPO) emerging as a major corporate development.
The retailer announced an offer for sale of two billion existing ordinary shares at KSh7.50 each, representing 50 per cent of its issued share capital. The transaction is expected to raise KSh15 billion for Sokoni Retail Kenya Limited, the selling shareholder.
The offer opened on October 5 and is scheduled to close on October 30, 2026. It requires a minimum subscription rate of 75 per cent to proceed.
The International Finance Corporation has made a conditional commitment to purchase shares worth up to $15 million, equivalent to approximately KSh1.94 billion, representing about 13 per cent of the offer.
The minimum application is 500 shares, translating to an investment of KSh3,750 before any applicable charges. Successful applicants are scheduled to receive their share allocations in their Central Depository System accounts on November 11, with trading expected to begin on the Nairobi Securities Exchange on November 12.
The proposed listing provides investors with an opportunity to acquire shares in the retail business through the NSE. For the market, the transaction is also a significant test of investor appetite for a large share offering amid the recent slowdown in equity turnover.
The IPO’s progress will depend partly on whether the offer meets the required subscription threshold before the October 30 deadline.
Dangote refinery GDR offer targets KSh39 billion
The Nairobi Securities Exchange also announced an initial public offering by Dangote Petroleum Refinery through the subscription of Kenya Global Depository Receipts (GDRs).
The offer comprises 728,971,962 GDRs at a subscription price of KSh53.50 each, targeting approximately KSh39 billion. The offer has a minimum success threshold of KSh50 million.
Investors are required to subscribe for at least 2,000 GDRs, equivalent to KSh107,000 at the stated price, with subsequent applications made in multiples of 100 GDRs.
The application period is scheduled to close on October 13, 2026.
The proposed transaction adds to the range of investment opportunities available through the Kenyan capital market, allowing eligible investors to participate in the refinery’s offering through the GDR structure.
The offer also places attention on the NSE’s ability to facilitate access to securities linked to major regional and international businesses, alongside domestic share offerings such as Quickmart’s IPO.
EPRA fuel price review in focus
Investors and businesses were also preparing for the Energy and Petroleum Regulatory Authority’s October/November 2026 fuel price review, scheduled for October 14.
The review will be closely watched because fuel prices have implications for transport, distribution, manufacturing and household expenditure. It will also be relevant to businesses already reporting higher fuel and logistics costs in the latest private-sector PMI survey.
Any changes in pump prices could affect operating expenses across several sectors, although the market report did not provide a forecast for the direction or size of the adjustment.
Overall, the week ending around October 9 presented a mixed picture for Kenya’s economy and capital markets. Equity indices retreated and foreign investors recorded net outflows, but most major indices retained substantial gains for the year. At the same time, private-sector demand showed signs of improvement, the CBK maintained its benchmark rate while raising its growth forecast, and two major share offerings kept activity in the capital markets in focus.
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Source: Standard Investment Bank, Kenya Weekly Market Wrap, October 12, 2026.