The Nairobi Securities Exchange (NSE) last week continued its steady advance of 2026, defying a cautious global backdrop marked by geopolitical tensions, volatile energy markets, and mixed signals from major economies, as Market Capitalisation closed at the strongest level in the bourse history, underpinned by gains in large-cap stocks, improving valuations, and renewed confidence among domestic investors.
Trading activity remained heavily concentrated in Safaricom PLC, with the telco once again emerging as the market’s liquidity anchor.
The Nairobi Securities Exchange (NSE) market capitalisation soared to Ksh 3.2 trillion, buoyed by Safaricom PLC dividend announcement, which sent share prices higher and pushed the value of the market to a historic peak, amid renewed investor confidence in blue-chip stocks.
The telco declared an interim dividend of Ksh 0.85 per share, its highest for the period, sparking a rally that added Sh63 billion to investor wealth in a single trading session. The payout is 54.5 per cent higher than what shareholders received during the same period last year and signalled renewed confidence in blue-chip stocks.
The surge lifted total market capitalisation to Ksh3.2 trillion, the highest level since the NSE was established. Investors piled into Safaricom shares, which rose 4.41 per cent to close at Ksh 31.95 after touching an intraday high of Sh32.50, a price last seen in August 2022.
Safaricom dominated trading activity, with 19.2 million shares changing hands valued at Ksh 614.1 million. The counter accounted for nearly half of all equity turnover at the exchange, underlining its influence on overall market performance.
At the close of trading, Safaricom’s market value stood at Ksh 1.279 trillion. In a statement to investors, the company said the dividend reflected its focus on balancing shareholder returns with long-term growth.
The dividend will be paid to shareholders on the company’s register as at February 25, 2026, with payments expected on or around March 31, 2026.
The rally came on the back of strong half-year results by Safaricom, which reported an 11.1 per cent increase in service revenue to Sh200 billion in the six months to September 2025. Growth was driven mainly by mobile money and data services. Net profit rose 52.1 per cent, helped by higher usage and tighter control of operating costs.
Market indicators also posted fresh milestones. The NSE All Share Index closed at 202.31 points, crossing the 200 mark for the first time since its launch in 2008. The NSE 25 and NSE 20 indices also ended the week higher.
By the end of the week, overall market capitalisation had risen by 3.73 per cent. However, equity turnover and total volumes traded declined as some investors held on to shares ahead of dividend payments.
Other stocks that recorded notable gains during the week included Standard Media Limited, Carbacid, Nairobi Business Ventures, Home Afrika and Total.
Away from equities, the money market remained active. The Treasury Bill auction held on February 5 attracted bids worth Ksh 64.3 billion against an advertised Ksh 24 billion, translating to a subscription rate of 267.9 per cent. This came even as yields on short-term Treasury Bills declined.
In the bond market, turnover in the secondary market fell to Ksh 64.1 billion from Ksh 67.6 billion the previous week. Kenya’s Eurobonds also strengthened, with yields falling slightly, supported by stable credit ratings from Moody’s, S&P and Fitch.
Alongside Safaricom, several other large cap stocks at the NSE have paid interim dividends in recent periods. Co-operative Bank paid its first ever interim dividend of KES 1.00 per share, while I&M Group paid a KES 1.50 per share. Alcohol manufacturer East African Breweries PLC declared the highest dividend at KES 4.00 per share, following strong H1 25/26 results, in which the firm posted a 38% growth in net income to KES 11.2 billion.
Strong Demand for 91-Day and 364-Day Papers
The Central Bank of Kenya’s (CBK) treasury bills recorded mixed performance with the 91-day and 364 -day papers attracting strong demand, while the 182-day paper recorded weak uptake.
The 91-day paper received bids worth KES 12.96 billion against an offer of KES 4 billion, translating to a performance rate of 323.9%, highlighting strong investor demand for short term instruments. The weighted average interest rate on accepted bids settled at 7.6%, largely unchanged from the previous auction.
Conversely, the 182-day paper saw lower demand, attracting bids worth KES 497 million against a target amount of KES 10 billion, translating to a subscription rate of 4.97%. The weighted average interest rate stood at 7.79%.
The 364-day treasury bill received KES 50.83 billion in bids against a targeted amount of KES 10 billion, reflecting a performance rate of 508.3% and an oversubscription of 408.3%. The CBK accepted KES 36.58 billion, with the weighted average yield standing at 9.20%.
Overall, the CBK accepted a total of KES 50.04 billion in the week’s auction.
