The Nairobi Securities Exchange continued its bullish momentum in February 2025, with
market capitalization rising by 4.7% from the previous month and an impressive 43.7%
compared to last year, reaching KES 2.08 trillion. This strong performance reflects improved
investor confidence and a more stable economic outlook.

Equity turnover stood at KES 8.5 billion—slightly lower than in January but a remarkable 85%
increase from last year—highlighting increased market activity. However, foreign investor
participation declined to 37.6%, with net foreign outflows widening to KES 1.28 billion,
signaling cautious sentiment among external investors. Despite reduced foreign investor
activity, the rising trade volumes and strong local participation indicate continued
confidence in Kenya’s equity market

Looking at the top gainers, the market was largely driven by speculation, with penny stocks
leading the charge. TransCentury Plc surged by 232.5%, Uchumi by 131.3%, and Home Afrika
by 129.7%—clear indications of heightened retail investor activity.

On the other hand, the biggest losers were mainly in the tea and agribusiness sectors. Poor
weather conditions during the dry season led to reduced yields, lower quality and a stronger
shilling dampened their export earnings, impacting major tea manufacturers.

In terms of market movers, banking and telecommunications stocks dominated turnover.
Foreign investors showed strong interest in Safaricom, with 70.1% participation, followed by
EABL at 68.4%, Jubilee Holdings at 64.1%, and Stanbic Holdings at 60.2%. HF Group emerged
as the biggest gainer, rising by 74.8%, while Co-op Bank and I&M Holdings saw slight declines
of 3.4% and 0.1%, respectively.

Looking ahead, we expect sustained bullish trends and earnings results from the banking
sector this month.