Kenyan Market Snapshot: March 24, 2026 — EQTY leads gainers on regional growth optimism

Key Takeaways

• EQTY (+4.20%) — Regional subsidiary growth and forex trading revenue optimism drove the rally despite macro headwinds.
• SCOM (-1.80%) — Profit-taking after recent gains as investors reassessed telecom sector valuations.
• KCB (-0.90%) — Political risk premium weighed on banking counters despite stable liquidity metrics.
• **Market breadth turned negative with 12 decliners against 10 advancers in the NSE 20 universe.

Market Pulse

The NSE 20 Index declined 0.30% to 1,985.20, extending losses from the prior session as profit-taking in blue chips offset gains in mid-caps. Turnover moderated to KES 1.2 billion, down 12% from Monday’s session, with volume contracting to 14.8 million shares. The NASI slipped 0.15% to 165.45, reflecting broad-based caution as investors priced in elevated political risk and shilling volatility.

Sentiment remained fragile with the Sentiment Index holding at 48, signaling a cautious tilt. Regional banking counters outperformed domestically focused stocks, with Equity Group’s regional forex income narrative dominating flows. The shilling weakened 0.4% against the dollar to 134.20, adding pressure to import-heavy counters.

What Moved

Top Gainers

• EQTY (+4.20%) — Regional subsidiary growth and forex trading revenue optimism drove the rally despite macro headwinds.
• BAMB (+3.10%) — Short-covering after recent underperformance as investors rotated into undervalued counters.
• CIC (+2.80%) — Insurance sector rerating on expectations of improved underwriting margins.

Top Losers

• SCOM (-1.80%) — Profit-taking after recent gains as investors reassessed telecom sector valuations.
• KCB (-0.90%) — Political risk premium weighed on banking counters despite stable liquidity metrics.
• COOP (-0.70%) — Sector rotation out of small-cap financials into larger, more liquid names.

Market breadth turned negative with 12 decliners against 10 advancers in the NSE 20 universe, while dispersion widened as mid-caps outperformed large-caps.

Sector Trends

Financial Services underperformed as banking counters lagged due to political risk premiums and shilling depreciation. Regional banks with diversified income streams, particularly Equity Group, outperformed domestically focused peers. Insurance counters showed resilience, with CIC leading gains on margin recovery expectations.

Telecoms faced headwinds as SCOM retreated on valuation concerns, while Safaricom’s stable dividend yield limited downside. Consumer Staples remained range-bound as inflationary pressures constrained consumer discretionary spending. Manufacturing counters showed selective strength, with Bamburi Cement benefiting from construction sector optimism.

Risks

Liquidity Constraints — Thin participation in smaller counters, particularly in the manufacturing and services sectors, continues to amplify volatility and reduce price discovery efficiency.

Macro Overhang — Rising political risks and shilling depreciation remain primary headwinds, with the currency’s 0.4% decline against the dollar adding to import cost pressures and investor uncertainty.

Global Risk Appetite — Escalating geopolitical tensions in Eastern Europe and the Middle East are increasing global risk aversion, which typically flows into emerging markets like Kenya as caution.

What To Watch Next

Immediate Catalysts — Monitor Equity Group’s regional forex trading revenue trends and Safaricom’s M-Pesa growth metrics in the next 48 hours.

Technical Levels — NSE 20 support at 1,970; resistance at 2,010. EQTY faces resistance at 42.50 after today’s breakout.

Sector Rotation — Watch for leadership shifts from financials to consumer staples if inflationary pressures ease and shilling stabilizes.

Income Plays — EQTY’s 9.37% dividend yield remains attractive relative to regional peers, though political risk may delay payout timing.

Global Macro — Geopolitical developments in Eastern Europe and U.S. Fed signals on rate cuts will drive risk sentiment into the week’s close.

Local Policy — CBK’s upcoming T-bill auction results and inflation print will provide clarity on domestic liquidity conditions and policy direction.

Informational only, not investment advice.