IMH surges 5.34% as NSE20 nears 3,901; KCB, SCOM lead gains

Market Pulse: NSE20 at 3,901.24, turnover KES 725.66M

The Nairobi Securities Exchange (NSE) closed the July 14, 2026 session with mixed but generally positive momentum. The NSE All Share Index (NASI) settled at 232.523, reflecting a 0.42% increase from the previous trading day. The benchmark NSE20 index, which tracks the performance of 20 blue-chip stocks, ended at 3,901.2358, marking a modest 0.28% gain. Trading activity saw 25.24 million shares exchange hands, generating an equity turnover of KES 725.66 million. Foreign investor participation remained steady at 29.7% of total market activity for the week ending July 13, 2026, with net foreign buying recorded at approximately USD 0.60 million.

Top Movers: IMH leads gains, KAPC drops 3.76%

The session’s top performers were led by Investment & Mortgages Holdings (IMH), which surged 5.34% to close at KES 69.00. The stock’s upward movement was driven by high-volume buying, making it the strongest gainer of the day. Housing Finance Company of Kenya (HFCK) followed with a 3.30% increase, closing at KES 10.95, supported by broader tailwinds in the banking sector. Safaricom (SCOM) rose 2.57% to KES 35.95, reflecting resilience in the telecom sector amid stable subscriber growth and service demand. Kenya Commercial Bank (KCB) advanced 1.88% to KES 81.50, highlighted in broker research as a liquid mover with strong fundamentals.

On the downside, Kapchorua Tea (KAPC) fell 3.76% to KES 320.25, emerging as the worst performer of the session amid weak sentiment in the agricultural sector. Uchumi Supermarkets (UCHM) declined 2.30% to KES 1.70, extending losses in the small-cap space due to ongoing liquidity challenges. Eveready East Africa (EVRD) dropped 1.89% to KES 1.04, while Kenya Airways (KQ) retreated 1.39% to KES 5.68, remaining under pressure from sector-specific headwinds.

Sector Trends: Banking index up 14.4% YTD

The banking sector continued to outperform, with the NSE Banking Index rising 14.4% year-to-date as of February 2026. Key contributors to this growth included ABSA Bank Kenya, Standard Chartered Bank Kenya (SCB-K), and KCB, which benefited from improved asset quality, loan growth, and stable interest margins. The telecom sector also showed strength, with Safaricom’s 2.57% gain reinforcing its position as a market leader. However, small-cap stocks underperformed, with EVRD (-1.89%) and UCHM (-2.30%) facing sustained selling pressure amid concerns over liquidity and earnings visibility.

Dividend Watch: JUB, BOC payouts in focus

Investor attention remains on upcoming dividend payouts, with Jubilee Holdings (JUB) set to distribute a final dividend of KES 13.00 per share on July 24, 2026. BOC Kenya will follow with a final dividend of KES 10.35 per share on July 21, 2026. Equity Group (EQTY) recently paid a KES 5.75 dividend on June 30, 2026, and market participants are monitoring the stock for a potential post-payout rebound. Other notable dividends include Co-operative Bank of Kenya (CGEN) at KES 3.12 (paid June 30) and TPSE at KES 0.35 (paid June 26).

Risks: KAPC, EVRD signal caution

The session’s declines in KAPC (-3.76%) and EVRD (-1.89%) underscore ongoing risks in the small-cap segment. Kenya Airways (KQ) also remains under pressure, trading at KES 5.68 after a 1.39% drop, reflecting persistent challenges in the aviation sector. Broker research advises caution on weaker names until signs of stabilization emerge, particularly in stocks with high volatility or liquidity constraints.

Fixed Income: CBR holds at 8.75%, TB yields rise

The Central Bank of Kenya (CBK) maintained the Central Bank Rate (CBR) at 8.75% during its most recent Monetary Policy Committee (MPC) meeting, signaling a stable but cautious monetary stance. In the Treasury bill market, the 91-day yield rose to 7.6% from 7.4% the previous week, while the 364-day yield held at 9.1%. The 182-day Treasury bill yield was recorded at 7.8%. In the bond market, the FXD3/2019/015 bond traded at a weighted yield of 12.2%, while the FXD1/2018/025 bond yielded 13.4%, reflecting investor demand for longer-dated securities.

What to Watch Tomorrow

Market participants should monitor key technical levels on the NSE20 index, with resistance expected between 3,950 and 3,980. Support levels are identified at 3,820 to 3,850, which could provide a floor in the event of profit-taking. Upcoming dividend payouts for BOC (July 21) and JUB (July 24) may influence trading activity, particularly in stocks with high dividend yields. Additionally, the market will watch for signals from NSE-linked debt desks regarding the AIB bond issuance, which was flagged for activity between July 9 and 12, 2026.

Informational only, not investment advice.