The Nairobi Securities Exchange (NSE) closed February 2026 sharply higher, adding KSh 326.99 Bn in market capitalisation to close at KSh 3.41 Trillion, more than double the KSh 138.56 Bn added in January.
- •The gains were capped by a five-day all-gainer week that fully reversed the prior week’s sell-off and confirmed a decisive recovery in market sentiment.
- •By month end, all major indices had posted double-digit gains, market breadth improved sharply, and banking stocks again led the advance.
- •The rally unfolded despite sustained foreign selling, underscoring strong domestic absorption and renewed risk appetite, with the final trading week providing the momentum that sealed February as one of the strongest monthly performances in recent years.
February 2026 Market Performance
February delivered a broad-based rally across the bourse, lifting both indices and individual counters.
The NSE All Share Index closed the month at 216.08, up 10.61%. The NSE 20 Index rose 13.67% to 3,750.45, while the NSE 25 advanced 11.77% to 5,948.29. The NSE 10 gained 10.83% to 2,268.39. The Banking Index led for a second consecutive month, climbing 14.36% to 245.90.
Liquidity improved sharply with Equity turnover jumping 75.0% month on month to KSh 23.6 Bn, from KSh 13.5 Bn in January. Foreign investors remained net sellers, posting outflows of USD 29.4 Mn, or KSh 3.79 Bn, wider than January’s USD 8.4 Mn. Selling stayed concentrated in large-cap banking and telecom stocks, with domestic demand absorbing supply.
The February rally extended well beyond indices. Only seven stocks closed the month in negative territory, underscoring the strength of market breadth.
- •Uchumi Supermarkets led monthly gainers, surging 130.71% to KSh 2.93 and restoring its market capitalization to about KSh 1.0 Bn. Flame Tree Group followed with a 58.99% gain to KSh 2.83. Sasini Tea and Coffee rose 42.89% to KSh 28.15, while Eaagads advanced 36.82% to KSh 30.10.
- •On the downside, Eveready East Africa led decliners with an 18.71% drop to KSh 1.13. BOC Kenya fell 3.64%, BK Group declined 1.96%, and EA Portland Cement eased 1.79%. Losses in Satrix MSCI ETF, Carbacid Investments, and Absa NewGold ETF were marginal, each below 1.1%, highlighting how limited selling pressure was during the month.
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Week 9: Clean Five-Day Rally Confirms Momentum
The final trading week of February, Week 9, closed with gains in all five sessions, marking a clear reversal from the prior all-red week.
- •The NSE 20 Index rose 127.88 points, or 3.53%, during the week. NASI gained 2.95%. The NSE 25 advanced 4.32%, while the NSE 10 climbed 4.39%. The Banking Index outperformed again, rising 5.75% week-on-week.
- •Weekly equity turnover rose to KSh 7.0 Bn on a volume of 287 M shares, up from KSh 5.8 Bn on 181.6 M shares the previous week. Banking stocks accounted for KSh 3.6 Bn, or 52.04% of total weekly value.
- •Equity Group led trading with KSh 1.5 Bn exchanged, followed by KCB Group at KSh 856.3 M and Co-operative Bank at KSh 345 M. Safaricom closed the week at KSh 32.00 on a volume of 45.9 M shares, contributing KSh 1.5 Bn, or 21.29%, of weekly turnover.
- •Uchumi again topped weekly gainers, surging 59.24% to KSh 2.93. Flame Tree gained 40.10%, Unga Group rose 15.70%, and Absa Bank advanced 13.18% to KSh 32.20.
- •On the downside, Eveready East Africa fell 16.30%. CIC Insurance declined 13.55% following a profit warning. Crown Paints, Shri Krishana, and Eaagads eased on profit-taking.
- •In fixed income, secondary bond turnover rose to KSh 136 Bn from KSh 113.4 Bn the prior week. Derivatives trading slowed, with 6,994 contracts worth KSh 32.4 M exchanged.
Corporate Actions and Market Developments
February featured a heavy flow of earnings releases, profit warnings, and a major index inclusion.
- •Kenya Power reported a 4.3% rise in HY2026 profit to KSh 10.4 Bn on higher gross profit and a 25.0% drop in finance costs. KenGen posted a 20.2% decline in H1 profit to KSh 4.2 Bn as operating expenses increased on higher depreciation and plant costs.
- •Unga Group delivered a strong turnaround, with half-year profit surging 537% to KSh 523.2 Mn as revenue rose 12% to KSh 14.48 Bn and finance costs fell 53%. BAT Kenya reported a 17% rise in FY2025 profit to KSh 5.25 Bn despite a 10% drop in revenue, and proposed a total dividend of KSh 70.00 per share. Carbacid grew half-year profit 6.9% to KSh 465.0 Mn, supported by revaluation gains, while Longhorn Publishers narrowed interim losses sharply after revenue jumped 88%.
- •Profit warnings persisted. Limuru Tea and CIC Insurance both projected at least a 25.0% decline in FY2025 earnings due to higher costs and weaker operating conditions.
- •On the capital markets front, the Treasury reached its KSh 106.3 Bn target in the Kenya Pipeline Company IPO, valuing the company at KSh 163.6 Bn, with trading set to begin on March 9.
- •Absa Bank Kenya will join the MSCI Frontier Markets Index at the close of trading on February 27, lifting Kenya’s representation to seven stocks and positioning the counter for potential passive inflows.
