The Nairobi Securities Exchange (NSE) surprised many on Tuesday, June 25, 2025, as it recorded strong gains despite nationwide protests and rising political tension. The market defied expectations by climbing to levels last seen three years ago, driven mainly by investor optimism and resilience among large-cap stocks.
The NSE All-Share Index (NASI) closed the day at 148.50 points, marking a 0.68% increase, which pushed its year-to-date growth above 20%. This impressive rally came even as thousands of Kenyans took to the streets to mark the anniversary of last year’s anti-tax demonstrations, which had rocked the country’s economy.
Market capitalization also expanded by KSh 16.3 billion to settle at KSh 2.34 trillion, translating to a 0.7% daily gain. On a year-to-date basis, this represents a strong 20.26% growth, making the NSE one of the best-performing markets in Africa so far in 2025.
The benchmark indices for blue-chip stocks—NSE 10 and NSE 25—each touched 52-week highs, underlining the strong performance of large-cap companies. The NSE 10 rose to 1,469.98 points (+0.55%) while the NSE 25 hit 3,818.82 points (+0.63%). The NSE 20 also posted a solid gain of 1.05%, closing at 2,318.17 points.
Despite the index gains, trading activity slowed. Turnover dropped 26.1% to KSh 232.7 million, suggesting that many investors took a cautious approach, possibly due to ongoing street protests and uncertainty around fiscal reforms. However, market breadth remained positive, with 28 stocks gaining against only 9 decliners, signaling sustained momentum.
Foreign investor sentiment, however, turned negative. After showing signs of interest the previous day, overseas investors pulled back, recording net outflows of KSh 35.53 million. Foreign buys dropped by 58% to KSh 50.55 million, while sales rose 33.1% to KSh 86.08 million, reflecting a growing “risk-off” attitude due to Kenya’s political climate and currency volatility.
Among the top-performing stocks was KenGen Plc ($KEGN), which touched an intraday high of KSh 6.00, a level last reached in August 2020. Kenya Power and Lighting Company ($KPLC) climbed 3.31% to KSh 9.36, marking its highest price since December 2017. Meanwhile, NCBA Group Plc ($NCBA) hit a 10-year high of KSh 58.50, demonstrating strong investor confidence in the banking sector.
In terms of corporate actions, BAT Kenya ($BAT) paid out a final dividend of KSh 45.00 per share for FY2024, bringing its total payout for the year to KSh 50.00, pending annual general meeting (AGM) approval. BK Group ($BKG) also issued a dividend of Frw 18.92 per share, completing its FY2024 payout at Frw 29.34.
Investors are also watching out for the financial results from Williamson Tea Kenya Plc ($WTK) and Kapchorua Tea Kenya Plc ($KAPC). Both tea producers had issued profit warnings in May 2025, blaming falling global tea prices and the strengthening of the Kenyan shilling, which affects export earnings.
Market watchers say the strong performance of the NSE signals underlying confidence in Kenya’s economic reforms, particularly around debt management and improved revenue collection. However, analysts caution that foreign outflows and political unrest could weigh on short-term sentiment, especially if demonstrations persist or escalate.
Attention is now shifting to upcoming fiscal policy announcements and the scheduled July bond auction, which could influence both equity and fixed-income market flows. With inflation appearing stable and corporate earnings mostly positive, local investors are seen as taking a long-term view, betting on economic stability and structural reforms to support growth.
