The Nairobi Securities Exchange (NSE) has introduced a Banking Sector Index, effective October 1, 2025.
- •The market-cap-weighted, float-adjusted index covers the free float of all listed banks.
- •It is designed to provide a clear benchmark for investors and support new products such as exchange-traded funds.
- •The launch follows strong banking sector performance in 2025, driven by higher earnings, stronger balance sheets, and financial innovation.
“The index underscores NSE’s commitment to innovation and the continuous development of products that meet evolving investor needs while strengthening Kenya’s capital markets.”
He added that it lays a foundation for sector-focused indices and broader product diversification.
NSE Chief Executive Frank Mwiti
Constituents of the Banking Sector Index and their market caps as of September 30, 2025:
| Company | Market Cap (as of Sept 30 2025) |
|---|---|
| Equity Group Holdings | KSh 218.9 Bn |
| KCB Group | KSh 182.4 Bn |
| Co-operative Bank of Kenya | KSh 125.6 Bn |
| Absa Bank Kenya | KSh 116.8 Bn |
| NCBA Group | KSh 113.7 Bn |
| Standard Chartered Bank Kenya | KSh 107.3 Bn |
| Stanbic Holdings | KSh 72.8 Bn |
| I&M Group | KSh 71.1 Bn |
| BK Group | KSh 35.7 Bn |
| Diamond Trust Bank Kenya | KSh 29.2 Bn |
| HF Group | KSh 20.1 Bn |
Other NSE Indices
- •The NSE 20 Share Index, launched in 1964, is the oldest and tracks 20 blue-chip firms using a composite of market capitalization, trading volume, number of deals, and turnover.
- •The NSE All Share Index (NASI), introduced in 2008 with a base of 100, represents the entire market on a free float-adjusted, market-cap basis.
- •In 2011, the NSE partnered with FTSE to introduce the FTSE NSE Kenya 15 and FTSE NSE Kenya 25.
- •The NSE 25 Share Index was later added to capture mid-cap and large-cap firms.
- •On September 4, 2023, the NSE launched the NSE 10 Share Index and the NSE Bond Index, covering leading equities and fixed-income securities.
Year-to-date gains as of September 30, 2025:
| Index | YTD Gain (%) |
| NASI | 43.13% |
| NSE 20 | 47.84% |
| NSE 10 | 36.93% |
| NSE 25 | 35.91% |
Large caps, especially Safaricom and banks, have driven much of this rally. Concentration risk and thin trading in some counters remain concerns.
The NSE reviews its indices periodically. In May 2025, it rebalanced the NSE 10, 20, and 25 to reflect liquidity, capitalization, and trading activity. HF Group and Diamond Trust Bank were included in the NSE 20. The review process is described as data-driven and aligned with international standards.
