The Nairobi Securities Exchange extended its recovery for a second consecutive week, adding KSh 128.42Billion in market capitalization and posting its strongest weekly gain since the record-setting Week 7 in February.
- •The rally clawed back more than half of the KSh 231.17Bn lost during the Week 13 rout.
- •Market capitalization rose 3.89% to KSh 3,432.92Bn from KSh 3,304.50Bn, lifting the market back above the pre-KPC listing level of KSh 3,289Bn for the first time since the selloff began.
- •The All Share Index gained 3.89% to 207.01, the NSE 10 led at 4.76%, the Banking Index added 4.49% to 238.86, while the NSE 25 rose 3.98% and the NSE 20 advanced 3.18%.
The Central Bank of Kenya held the benchmark rate unchanged at 8.75% on April 8, acknowledging that the Middle East conflict has driven energy prices significantly higher but concluding that inflation remains below the midpoint of the target range. The decision removes the immediate risk of a rate hike that markets had feared during the selloff, though it also means the record rate-cutting cycle is on pause. Average lending rates continue to decline and private sector credit growth is improving, both supportive for equities.
The shilling held steady at KSh 129.53 per dollar, but the stability is being underwritten by a sustained drawdown in foreign exchange reserves. CBK reserves fell for a fifth consecutive week to USD 13,316M (5.7 months of import cover) as of April 9, down USD 340M week-on-week. The run is the longest since September-October 2023 and has stripped USD 1.28Bn from reserves since March 5, when they stood at USD 14,597M (6.2 months). Reserves remain well above the CBK's statutory minimum of 4 months.
Top Gainers and Losers
Kenya Airways led for the second straight week, surging 25.91% to KSh 6.90. TPS Serena gained 8.52%, Shri Krishana Overseas rose 7.99%, TotalEnergies added 7.88%, and Sasini advanced 7.72%. Among large caps, Equity rose 7.22% to KSh 74.25, Co-operative Bank gained 7.67% to KSh 30.90, Safaricom added 4.39% to KSh 29.75, and KCB advanced 4.03% to KSh 71.00.
East African Portland Cement led losers, falling 7.93%. Standard Group dropped 3.50%, Kakuzi lost 3.00%, WPP Scangroup declined 2.54%, and Home Afrika shed 2.04%.
Turnovers and Flows
- •Equity turnover was flat at KSh 2.77Billion, with volume easing 4.81% to 89.6Million shares. Banking dominated at 66.29% of weekly turnover (KSh 1.8Billion), led by Equity (KSh 879M) and KCB (KSh 638M). Safaricom's share of turnover fell to 16.47% (KSh 456M) from 39.51% the previous week.
- •Foreign investors remained net sellers for the sixth consecutive week, recording outflows of KSh 940.08Million, the heaviest since Week 11's KSh 2.60Billion. Wednesday and Thursday saw combined net selling of KSh 896Million. Foreign turnover accounted for 35.05% of market activity. The persistent selling into a rising market is the most significant cautionary signal: prices are recovering but offshore capital continues to exit.
- •Bond turnover fell 9.71% to KSh 53.20Billion with the Bond Index staying flat at 1,170.17. Kenya's Eurobond yields declined across the curve, with the 2028 tenor falling to 7.53% and the 2032 dropping to 8.30%, reflecting improved sentiment on Kenya's sovereign credit.
- •Derivatives recorded 7,943 contracts worth KSh 43.6Million, up 18.87% in volume and 152.09% in turnover value.
Drivers
The rally was supported by two developments. The MPC hold at 8.75% reassured markets that the CBK is not moving to tighten despite the oil shock, removing a key overhang.
Globally, risk sentiment improved: the S&P 500 is now down just 0.24% YTD after recovering from -6.08%, the FTSE 100 is up 6.91% YTD, and India's Nifty 50 rebounded from -13.08% to -7.96%. Brent crude eased to around $90 per barrel (Murban at $90.33 on April 9), well below the $106+ levels seen during the Week 13 selloff, though the Strait of Hormuz disruption persists.
The April 15 EPRA fuel price review remains the next domestic catalyst. With Murban crude averaging above $90 for March-priced cargoes, a fuel price increase is still expected, though the pullback from $106 reduces the severity.
Corporate Actions
- •Jubilee Holdings released audited financial statements.
- •Kenya Pipeline Company announced the resignation of Managing Director Joe K. Sang, effective April 3. Sang had overseen the company's record profitability, Company of the Year award in 2025, and successful NSE listing.
Key Rates Snapshot: Week Ended April 10, 2026
| Indicator | Rate | Previous | Change |
|---|---|---|---|
| GDP Growth (Q3 2025) | 4.9% | 5.0% (Q2) | -0.1pp |
| Inflation (Mar 2026) | 4.40% | 4.30% (Feb) | +0.1pp |
| CBR (Policy Rate) | 8.75% | 8.75% | Unchanged |
| KESONIA (Interbank) | 8.75% | 8.75% | Unchanged |
| 91-Day T-Bill | 7.40% | 7.40% | Unchanged |
| 182-Day T-Bill | 7.83% | 7.83% | -0.1bps |
| 364-Day T-Bill | 8.27% | 8.28% | -0.8bps |
| USD/KSh | 129.53 | 129.99 | -0.35% |
| 10Y Eurobond (2028) | 7.53% | 7.82% | -29bps |
| 13Y Eurobond (2034) | 8.65% | 9.38% | -73bps |
| 30Y Eurobond (2048) | 9.15% | 9.61% | -46bps |
