Foreign investors pull KSh17.8bn from NSE in 2026, passing last year’s total

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Foreign investors have pulled a net KSh17.79 billion out of the Nairobi Securities Exchange (NSE) since January, already more than they withdrew in the whole of 2025, as a fresh wave of selling dragged the market lower for a third straight week.

Provisional market data for the week ended Friday, October 16, shows foreign investors sold a net KSh1.503 billion of shares, more than double the KSh741.92 million recorded the week before. Their sales came to KSh1.87 billion against purchases of just KSh366.99 million, taking net outflows over the last two weeks to KSh2.245 billion.

The year-to-date figure is above the KSh11.60 billion foreigners withdrew in 2025 and the KSh16.52 billion in 2024, placing 2026 among the five worst years for foreign exits since 2015. It is still below the KSh29.64 billion pulled out in 2018 and KSh28.63 billion in 2020.

KSh134bn wiped off in three weeks

The NSE’s market value fell by KSh74.35 billion during the week to KSh4.036 trillion, its third weekly decline in a row. Over the three weeks, investors have lost about KSh134.41 billion in value. The selling pressure first showed up earlier this month, when foreign investors turned net sellers and the bourse shed KSh40bn in a week.

The NSE All Share Index (NASI) dropped 1.8% to 240.50 points, while the NSE 20 and NSE 25 fell 1.54% and 1.94% respectively. Even so, the market remains well up for the year, with NASI still about 28.9% higher than in January and total market value roughly KSh1.09 trillion above its opening level.

March saw the biggest monthly outflow this year at KSh4.28 billion, followed by September at KSh3.61 billion. Foreign investors have been net sellers every month since July, taking out about KSh7.81 billion over that period.

Banks take the hit

Bank shares made up about 71% of the week’s equity turnover, which rose 62.41% to KSh3.176 billion even as the number of shares traded fell 17.88% to 75.67 million. Equity Group led trading at KSh773.97 million, followed by I&M Holdings at KSh627.32 million, Safaricom at KSh540.46 million and KCB Group at KSh474.14 million.

Equity Group was also the stock foreigners sold most, with a net outflow of about $4.7 million, ahead of KCB at about $2.6 million and Safaricom at about $1.2 million, according to Standard Investment Bank’s weekly market wrap. Equity shares slipped 3.8% to KSh100, I&M fell 2.9% to KSh85 after touching KSh92 earlier in the week, and Safaricom eased 2.4% to KSh34.90. Kenya Power attracted the most foreign buying. Foreign participation rose to 30.2% of activity from 23.7% the week before.

The drop comes after a strong run for lenders this year, with sector profits up 17.2% in the first half. Analysts had picked Equity, KCB and Co-op as the top bank stocks on the back of those earnings.

Bonds and bills stay busy

Demand for government debt held up. Bond turnover fell 25.5% to KSh40.57 billion for the week, but trading this year has reached about KSh2.544 trillion, roughly KSh142 billion short of the KSh2.686 trillion record set in 2025.

The October 15 Treasury bill auction drew KSh68.5 billion in bids against KSh28 billion on offer, with the 91-day rate easing to 8.750% and the 182-day to 8.860%. Investors looking to follow that route can see how to buy Treasury bills in Kenya.

The shilling firmed slightly to KSh129.81 against the dollar from KSh129.94, while foreign exchange reserves dipped to $14.689 billion. Trading will be thin this week, with markets closed on Tuesday for Mashujaa Day.