Shares on the Nairobi Securities Exchange fell for a second straight week, wiping Sh40.06 billion off market capitalisation in the five sessions to Friday, October 9. Total market value slipped to Sh4.11 trillion from Sh4.15 trillion, taking two-week losses to about Sh60 billion.
The NSE All Share Index (NASI) dropped 0.97 per cent to 244.93 points. The NSE 20 eased 0.19 per cent to 4,315.49, the NSE 25 shed 0.53 per cent over the week and the banking index lost 0.46 per cent, according to figures compiled by Kenyan Wallstreet.
Foreigners back on the sell side
Foreign investors were the main source of pressure. They sold a net Sh741.92 million during the week, reversing net inflows of Sh224.35 million in the previous two weeks. Every one of the five sessions closed with a net foreign outflow, and Monday, October 5, alone accounted for Sh358.09 million.
Local investors carried about 76 per cent of equity trading. Turnover fell 14.21 per cent to Sh1.96 billion, a two-week contraction of almost 58 per cent, even though the number of shares changing hands rose sharply. That combination usually points to heavier trading in lower-priced counters while the big-ticket stocks went quiet.
Safaricom, I&M Holdings, KCB Group and Equity Group still drew most of the money. Business.co.ke noted that Nation Media Group led Friday’s losers while BOC Kenya topped the gainers.
Friday itself was mixed. The NSE 25 rose 0.82 per cent on the day to 2,792.78, but losers outnumbered gainers 31 to 19, Afrivestia reported. The exchange also announced that more Kenyan-listed companies had been added to the MSCI Frontier Small Cap Index, which can bring passive fund buying over time.
Bonds keep breaking records
The fixed-income market told a different story. Weekly bond turnover fell 35.14 per cent to Sh54.46 billion, but cumulative turnover for 2026 has already passed Sh2.5 trillion, the second year in a row above that mark. Last year’s record was Sh2.71 trillion, which followed a 75.5 per cent jump from Sh1.54 trillion in 2024.
Demand for government paper stays strong. The latest Treasury bill auction drew Sh75.4 billion in bids against Sh28 billion on offer, a sign that banks and funds still see short-dated state debt as an attractive home for cash with the Central Bank Rate held at 8.75 per cent.
Why the selling matters
Foreign flows set the tone on the NSE because offshore funds hold large positions in the biggest counters. With Brent crude above $100 a barrel and the shilling around 129.6 to the dollar, some of those funds appear to be trimming frontier exposure.
The calendar ahead is busy. The Quickmart initial public offer runs to October 30, and the Dangote refinery depository receipt offer closes on Tuesday, October 13. Both could pull retail and institutional cash away from secondary trading in the short run.
Sources: Kenyan Wallstreet | Business.co.ke | Afrivestia
