NSE rallies as market jitters ease after Middle East ceasefire

INVESTORS at the Nairobi Securities Exchange gained a massive Sh100 billion in paper wealth on Friday, reflecting sustained interest in some stocks with strong upside potential.

Market analysts reported that market jitters continued to ease after a two-week ceasefire was reached between the US, Israel, and Iran.

Data from the Bbourse shows that total market capitalisation rose by 3.5 per cent to Sh3.41 trillion compared to Sh3.3 trillion the previous week, supported by gains in stocks such as Cooperative Bank, Equity Group, KCB Group, and Safaricom Plc.

These counters recorded positive price movements of 2.5, 2.4, 1.1, and 0.5 per cent, respectively, lifting the companies’ market value.

Co-operative Bank’s share price hit a record high of 30.90 during the week, and was among the top five biggest movers with a volume of 1.4 million shares.

The lender’s dividends declared since 2008 stand at Sh87.5 billion, over three times its valuation of Sh27.9 billion when listed at the Nairobi bourse.

The bank began the year with a share price of Sh23.95 and has since gained 29 per cent on that price valuation, ranking it 11th on the NSE in terms of year-to-date performance.

Kenya Airways, Equity Bank, Kenya Re and Kenya Pipeline were the other biggest movers for the week, with the national carrier’s share gaining three per cent, buoyed by speculation about the planned capital injection by a new investor.

Nevertheless, the market was weighed down by large-cap stocks such as Diamond Trust Bank, BK Group, British American Tobacco Kenya and ABSA Bank, which lost 0.8, 0.7, 0.5, and 0.3 per cent, respectively.

Foreign investors remained net sellers, recording net outflows of Sh534.73 million, compared with Sh361.68 million in the previous session.

Generally, the Nairobi bourse reported improved activities, with the NASI, NSE 25 and NSE 20 share price indices increased by 3.28, 3.45 and 2.89 per cent, respectively, during the week ending April 9, 2026.

Bond turnover in the domestic secondary market decreased by 45.15 per cent during the week, dropping further to Sh35 billion from Sh65 billion the previous week.

In the money market, the Treasury bill auction of April 9 received bids totalling Sh24.6 billion against an advertised amount of Sh24 billion, representing a performance of 102.3 per cent.

 Interest rate on the 182-day and 364-day Treasury bills declined marginally, while interest rate on the 91-day Treasury Bill remained unchanged.

This is a massive improvement compared to the previous three weeks, when the short-term state securities were grossly undersubscribed.

The improvement has been attributed to the softening monetary policy that saw the Central Bank retain the base lending rate for the first time in 10 years.  

The Monetary Policy Committee (MPC) decided to maintain the Central Bank Rate (CBR) at 8.75 per cent during its meeting held on April 8, 2026.

The MPC observed that the conflict in the Middle East has disrupted global supply chains, leading to significantly higher energy prices.

Despite expected upward pressure from higher energy prices, CBK expects Kenya’s overall inflation to remain below the midpoint of the target range in the near term.

Central banks in the major economies have kept their policy rates unchanged as they assess the impact of the conflict in the Middle East on their inflation and growth outlooks