Feature: NSE Investors See KSh 477 Billion Boost in Half-Year Gains

The Nairobi Securities Exchange (NSE) has delivered impressive gains that beat out returns from bonds, fixed deposits, and even property. The total value of investments on the Nairobi stock market jumped by a huge 25 percent, adding KSh 477.3 billion. By the end of June, the market was worth KSh 2.417 trillion, its highest point since mid-2022.

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This strong performance continues a powerful upward trend that started in November 2023. The market’s total value had hit a low of KSh 1.35 trillion. But in just 18 months since then, the NSE has added an astonishing KSh 1.067 trillion in investor wealth, marking one of its biggest growth spurts in over a decade.

All the main market trackers have seen significant rises. The NSE All Share Index (NASI), which shows how the entire market is doing, climbed by 24.25%. The NSE 20 Share Index, which tracks the top 20 companies, also saw a solid 21.37% increase. This is the second year in a row that the NSE 20 has gained more than 20%, a consistent performance last seen between 2005 and 2006. The NASI’s current momentum also builds on its strong 34.06 percent gain from 2024, similar to the active market periods in 2012-2013.

Big Winners:

– Energy companies – Kenya Power (KPLC) led the charge with an incredible 139.09% gain, with KenGen close behind, rising by 104.95%. These energy companies did so well because of better profits, helpful government policy changes, and renewed interest from investors who see potential in companies linked to major projects.

– Banks (+38%) – Lower interest rates helped improve profits 

– Insurance firms (+43%) – More customers and better investments pushed prices up 

Struggling Sectors: 

– Agriculture (-3.6%) – Drought and unstable global prices hurt performance

– Car dealers (-7.7%) – Expensive imports and slow sales weighed on the industry 

The Big Companies Back on Top

As of June 2025, the top 10 companies on the NSE collectively are worth over KSh 2 trillion. This is a level not seen since September 2022. A major moment was when Safaricom regained its KSh 1 trillion market value. This signals that large institutional investors are showing renewed interest in the mobile giant, despite the challenges from currency exchange rates due to its expansion into Ethiopia.

As the NSE moves into the second half of 2025, it does so with strong positive momentum. This is fueled by continued profit growth, a more stable economy, and solid local demand. However, the stock market does have its risks. Changes in global money policies and unpredictable company profits could still affect how the market performs.

Even so, the first half of 2025 has clearly confirmed one thing: Kenya’s stock market is definitely on the rise, and investor confidence is visibly growing.

What Does This Mean For You:

1. If you currently hold stocks listed on the NSE, especially those in the energy, investment, or insurance sectors, you’ve likely seen the value of your portfolio increase significantly.

2. With the NSE performing strongly, it presents a good opportunity to diversify your investment portfolio if it’s heavily weighted towards other asset classes like fixed deposits or property.

3. While the market is performing well, it’s crucial to remember that all investments carry risk.

4. While some investors might engage in short-term trading to capitalize on momentum, a “buy and hold” strategy often proves more effective for long-term wealth creation, even in a bull market.

5. Consult a qualified wealth manager today to align your investment strategy with your financial goals and optimize your portfolio for long-term success. Consider writing to wealthmanager@justivyafrica.com.

Source: The Kenyan Wall Street, Business Daily. 

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