NSE Roars Back: Investor Wealth Rebounds by KSh1 Trillion in H1 2025

By Kibaki Muthamia on July 2, 2025

After months of investor jitters and sluggish trading volumes, the Nairobi Securities Exchange (NSE) has staged a dramatic comeback – adding a staggering KSh1 Trillion to investor wealth in just the first six months of 2025.

This turnaround, anchored by a KSh477 B gain in market capitalization during the first half of the year, signals renewed confidence in Kenya’s capital markets and reflects a broader recalibration of investor sentiment, both local and foreign.

What’s Driving the Resurgence?

A few factors explain this bullish swing:

1. Strong Blue-Chip Performance

Major counters such as Safaricom, Equity Group, and KCB have led the charge. Renewed demand – especially by institutional investors – has boosted share prices and improved liquidity.

Safaricom’s diversification into regional markets and fintech, for example, appears to be paying off, helping offset pressure from domestic competition and regulation.

2. Foreign Investor Interest Returns

With global inflation stabilizing and interest rates plateauing, frontier markets like Kenya are once again attracting risk-tolerant capital.

The relative undervaluation of NSE stocks coming into 2025 made the bourse an attractive entry point for bargain hunters and long-term funds.

3. Policy Reforms and Confidence in Macroeconomic Direction

The government’s fiscal consolidation measures, progress on the Eurobond refinancing strategy, and strengthened Kenya Revenue Authority (KRA) collection targets are painting a more credible macro backdrop.

Investors, long wary of fiscal slippage, are slowly returning with cautious optimism.

The Nairobi Stock Exchange logo (Image: Files)

The Numbers: Behind the KSh1 Trillion Surge

Let’s break it down:

  • Market capitalization surged by KSh 477 billion in H1 2025.
  • Cumulative investor wealth now stands KSh 1 trillion higher compared to the same period in 2024.
  • Daily trading volumes have improved, with some blue chips consistently clocking double-digit growth in share price year-to-date.

This points to not just a temporary rally – but a potential long-term upward trend, pending policy consistency and external economic stability.

Sector Highlights

Banking: Driven by solid Q1 earnings and enhanced digital lending products.

Telecommunications: Safaricom’s expansion into Ethiopia and increased mobile money usage remain key catalysts.

Energy & Utilities: Infrastructure spending and power connectivity growth continue to support counters like KenGen and Kenya Power.

Investor Implications: Is This the Start of a Sustained Bull Run?

While the numbers paint a positive picture, investors must remain measured.

Here are a few forward-looking insights:

  • Short-term traders should monitor volatility, especially around interest rate news, forex movements, and fiscal announcements.
  • Long-term investors may find this an opportune time to re-enter the market or rebalance portfolios—especially toward undervalued but fundamentally sound counters.
  • Retail investors, empowered by platforms like AIB-AXYS and Faida, continue to grow their presence—an encouraging sign for market democratization.

Things to Note

The NSE’s rebound doesn’t eliminate underlying vulnerabilities:

  • Exchange rate fluctuations remain a concern, especially for foreign repatriation.
  • Upcoming 2025/26 budget execution and public debt trajectory will be closely watched.
  • Global shocks – geopolitical or financial – could still affect sentiment.

In a Nutshell…

The NSE’s KSh 1 trillion wealth rebound is not just a statistical blip – it’s a reflection of Kenya’s economic resilience and a market that is finally regaining investor trust.

While cautious optimism remains the order of the day, the numbers from H1 2025 are a loud and clear signal.