As we bring the curtain down on 2025, we do so with a deep sense of pride and renewed confidence in the direction of our nation’s capital markets. This has been a year that reaffirmed Kenya’s positive trajectory, one defined by resilience, sound stewardship, and a growing belief in the promise of our economy.
Anchored by strong macro-economic fundamentals, both at home and across the global economy, 2025 marked another chapter of sustained progress.
Declining interest rates, a stable currency, improving GDP growth, and enhanced fiscal and monetary coordination created an environment in which confidence could flourish. These conditions, coupled with deliberate policy actions and strengthened market oversight, translated into robust performance across our capital markets.
Growth in market capitalisation, rising by over 47.97 percent from Sh1.968 trillion to Sh2.912 trillion year-to-date stands as a powerful indicator of this progress. This expansion reflects more than rising numbers; it signals a renewed confidence in the valuation and long-term prospects of Kenya’s leading enterprises.
Improved corporate governance, stronger balance sheets, better earnings performance, and enhanced management practices across listed companies have played a central role in this recovery.
Equally important has been the growing participation of both local and international investors, encouraged by greater transparency, improved regulation, and a clear commitment to market integrity.
This positive momentum was also mirrored in the performance of our indices. The NSE 20 Share Index, which tracks our most established blue-chip companies, rose by an impressive 50.73 percent – climbing from 2058.67 points to 3103.09 points year-to-date.
This strength was broad-based, with all major indices recording double-digit growth, underscoring the depth and resilience of the market. The year also stood out as one of renewed activity and innovation.
Listings and new issuances took centre stage, with over five new offerings coming to market. Notably, the successful issuance and listing of two major corporate bonds, the Safaricom Bond and the East African Breweries Bond, I extend my sincere appreciation to the government, regulators, issuers, intermediaries, and all market participants whose collective efforts sustained and strengthened the market throughout the year. Your commitment has laid a strong foundation for the future.
Looking ahead to 2026, our optimism is firmly grounded in expectation and preparation. Continued macro-economic improvements, supported by the government’s strategic interventions, are set to further strengthen the economy.
Of particular significance is the proposed privatisation of the Kenya Pipeline Company, an initiative that has the potential to transform our capital markets by broadening investor participation and introducing one of the most consequential IPOs in our history.
We anticipate increased activity across the board, more initial public offerings, listings by introduction, and deeper engagement in the corporate bond market. Together, these developments will expand choice, enhance liquidity, and reinforce the role of the capital markets as a cornerstone of national development.
Central to these market developments is a bold and forward-looking strategy anchored on three defining pillars: revitalising our markets, harnessing the power of technology, and strengthening organisational effectiveness.
Together, these pillars form the basis upon which we are rebuilding a deeper, more resilient, and more inclusive capital market. Through targeted reforms, digital innovation, and sharper execution, this strategy is designed to unlock new listings, expand market depth, and significantly elevate investor participation.
At the heart of this vision is our renewed and ambitious commitment to onboard nine million active retail investors. We firmly believe that retail investors are the lifeblood of any vibrant and sustainable financial market.
To this end, we are forging strong partnerships, embracing innovation, and reimagining access to investing, ensuring that every Kenyan, regardless of background or geography, can confidently participate in wealth creation through our capital markets.
I call upon all Kenyans to take part in this journey. Open an investment account, participate in our capital markets, and invest in the companies listed on the NSE.
Over the past two years, the NSE has outperformed many major asset classes, proving that disciplined investing can build wealth and secure financial futures. Let us, together, harness the power of our capital markets to drive prosperity for ourselves and for generations to come.
Finally, I extend my sincere appreciation to the government, regulators, issuers, intermediaries, and all market participants whose collective efforts sustained and strengthened the market throughout the year. Your commitment has laid a strong foundation for the future.