Nairobi Market Weekly Review - Equities React to Big Headlines (Week Ending 24 January 2026) | Dawan Africa

By Benadeta Mwaura - Reporter

Kenya, 24 January 2026 - The Nairobi Securities Exchange (NSE) continued to show resilience this week, with key indices advancing slightly despite a backdrop of significant corporate and policy developments that have kept investors on alert.

According to the latest market snapshot, the NSE All Share Index edged higher, reflecting modest gains in market valuation and sustained interest in blue-chip stocks.

This positive performance came even as the market digested major news, most notably the launch of the Kenya Pipeline Company (KPC) Initial Public Offering (IPO), ongoing discussions around the partial sale of government shares in Safaricom, and broader capital market activity that underlines growing investor appetite for equities over fixed income instruments.

KPC IPO Stirs Investment Sentiment

Perhaps the most market-moving story this week was the launch of the KPC IPO, which marks one of the largest share sales in Kenyan capital markets.

The government formally opened the offer for the 65 % stake in the Kenya Pipeline Company, a strategic energy infrastructure firm, offering everyday investors a rare chance to buy into an essential utility as well as a potential growth stock.

The IPO, priced at KSh 9 per share and expected to close by 19 February 2026 with a listing set for early March, has been widely discussed among market participants as a catalyst for widening the investor base and injecting fresh liquidity into the NSE.

In addition to its size, the KPC listing is expected to end a long IPO drought on the bourse and reduce reliance on a narrow group of large counters, a dynamic that can help balance sector representation and offer alternative assets for portfolio diversification.

Analysts have also noted that the government’s broader privatisation agenda gives retail investors a window into institutional-grade infrastructure investments long confined to state coffers.

Safaricom Developments Influence Market Tone

Meanwhile, Safaricom Plc, by far the largest stock by market capitalisation and a bellwether for the Kenyan market, continued to be a central focus for investors.

Safaricom’s share performance, trading activity and news flow this week helped shape overall sentiment.

A combination of ongoing government plans to divest part of its stake to strategic partners and company reassurances that governance and local operational control will remain unchanged contributed to investor confidence.

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Safaricom’s stature on the NSE is enormous; even incremental moves in its share price tend to have outsized effects on indices and broader equity sentiment.

Recent data from prior months show strong appetite for Safaricom-linked securities, with the company’s bond programme also attracting high demand and supporting diversified investor engagement.

Market Structure and Shifts

This week’s trading underscored existing market dynamics where equities continue to outperform bonds as institutional and retail investors rotate into higher-growth assets amid relative easing in interest rates.

With Treasury bill yields falling and fixed-income returns softening, many portfolio managers and pension funds are increasingly weighting equities, contributing to liquidity and cap-weighted gains.

The latest activity data also suggests that domestic participation remains robust, often compensating for modest net foreign flows, especially in large banks and telecoms stocks that anchor most trading volumes.

Safaricom frequently leads weekly turnover, while banking stocks including NCBA, KCB, Equity and Coop Bank continue to drive sector momentum thanks to broad investor interest and solid growth narratives.

Looking beyond the week, the NSE has logged significant gains over the past year, with market capitalisation crossing key thresholds and total shareholder wealth expanding markedly.

This longer-term strength reflects the market’s ability to absorb structural changes, such as the introduction of electronic trading mechanisms and broader market access initiatives like M-Pesa-enabled share trading, that are lowering barriers and democratizing participation.

Despite strong fundamentals, some investors remain attentive to geopolitical, macroeconomic and regulatory risks that could temper exuberance.

These include court challenges to privatisation proceedings, global economic headwinds and domestic policy shifts that can influence cost of capital and market valuations over time.