The Central Bank of Kenya’s weekly bulletin released on 18 September reported that the NSE All‑Share Index fell 4.96%, the NSE 25‑Share Index dropped 5.85% and the NSE 20‑Share Index slid 6.47%, leaving total market capitalisation at Ksh3.95 trillion – a 4.96% decline from the previous week.
Despite the price fall, trading activity accelerated. Shares exchanged rose to 178.71 million from 141.32 million a week earlier, and equity turnover climbed to Ksh9.27 billion from Ksh6.41 billion, even as the number of equity deals fell 14.3% to 77,103.
The sell‑off coincided with robust appetite for government debt. At the Treasury‑bill auction on 17 September, investors bid Ksh42.7 billion against a Ksh28 billion offer – a 152.6% performance – while bids for reopened 20‑year and 30‑year Treasury bonds reached Ksh81.4 billion, 135.7% of the Ksh60 billion on offer.
Kenya’s international debt market also felt pressure, with Eurobond yields rising an average of 9.52 basis points during the week, reflecting renewed global inflation concerns and a stronger US dollar after the Federal Reserve’s 25‑basis‑point rate hike on 16 September.
The Kenyan shilling stayed relatively steady, trading at Ksh129.62 per US dollar on 17 September, compared with Ksh129.45 a week earlier. Foreign‑exchange reserves held at USD15.088 billion – enough for 6.1 months of imports – remain above the statutory four‑month minimum.
Remittances continued to support foreign‑exchange earnings, with Kenyans abroad sending USD451.8 million in August 2026, a 6% year‑on‑year increase, although cumulative inflows over the past 12 months slipped 1.3% to USD5.013 billion.
Overall, Kenya’s financial system shows a mixed picture: equity markets are under pressure, but government‑bond demand is strong, the currency and reserves are stable, and the money market remains liquid with the overnight interbank rate (KESONIA) holding at 8.75%.