Bank stocks in command, Africa Mega steals show

Banks are expected to continue commanding activities at the Nairobi Securities Exchange this week as they release financial results for the first quarter of the year.

Last week, the third biggest bank in the country in terms of asset value, Co-operative Bank Group, saw its share price rise by Sh1.25, with investors’ wealth rising by close to Sh9 billion to hit a market cap of Sh91.45 billion.

The lender recorded a 5.3 per cent jump in net earnings for the first three months of the year to Sh6.9 billion, attributed to the group’s strategic focus on sustainable growth, resilience and agility.

On Friday, other banking heavyweights like KCB and Equity Holdings recorded increased activities as investors look forward to impressive profits this week.

There was, however, a surprise in the top gainers’ list at NSE on Friday. Kenya Orchards, which rebranded to Africa Mega Agricorp early this year following the sale of an 84 per cent stake, gained by 9.8 per cent to Sh56 as the new holders' strategies to go back to profitability.

The transaction involved the sale of 10.86 million shares previously held by Westpac Holdings (34.3 per cent), directors Thakarshi Keshav Patel (33.6 per cent) and Vipul Thakarshi Patel (14.9 per cent), as well as Hansa Dinesh Chandra Shah (1.7 per cent).  

Others in the top gainers list included Sanlam, which rose by 9.7 per cent to Sh7.46, and Longhorn, which saw its share price close the week at Sh2.86, an impressive nine per cent growth compared to the previous day’s trading.

BOC Kenya and Uchumi Supermarkets, which have been gaining in the last two months, dropped by an average of nine per cent.

Generally, the Nairobi bourse recorded improved activities during the week, with all indices blinking green. According to the weekly bulletin by the Central Bank of Kenya, the NASI, NSE 25 and NSE 20 share price indices increased by 5.7 per cent, 5.3 per cent, and 4.3 per cent, respectively.

Similarly, market capitalisation, total shares traded, and equity turnover increased by 5.7 per cent, 99.7 and 56.9 per cent respectively.

The Treasury bill auction of May 15 received bids totaling Sh43.1 billion against an advertised amount of Sh24 billion, representing a performance of 179.7 per cent.

Interest rates on the 91-day, 182-day and 364-day Treasury bills remained stable.

The government reported remittance inflows for April 2025 of Sh54.7 billion, reflecting a 6.4 per cent year-on-year increase from Sh51.3 billion in April 2024.

The cumulative inflows for the 12 months to April 2025 increased by 12.1 per cent to Sh645.2 billion compared to Sh582 billion in a similar period in 2024.

These sustained inflows continue to underpin Kenya’s current account stability and to bolster foreign exchange market resilience.

The United States accounted for 56 per cent of total remittances in April 2025, reinforcing its position as the dominant source of remittances.

Inflation concerns eased during the week, with the US inflation for April dropping to 2.3 per cent from 2.4 per cent in March, indicating easing pressures.