Kenya’s equity market recorded increased activity in the week ending November 5, 2026, with market capitalisation rising by 1.68 per cent following Nedbank’s acquisition of NCBA shares valued at KSh107.3 billion.
According to the Central Bank of Kenya’s (CBK) Weekly Bulletin released on Friday, November 6, total shares traded at the Nairobi Securities Exchange (NSE) increased by 933.04 per cent, while equity turnover surged by 2,755.81 per cent during the week.
The significant increase in trading activity was attributed to Nedbank’s acquisition of NCBA shares, making the transaction a major contributor to activity at the local bourse.
NSE Indices Record Gains
The NSE also posted gains across its key market indicators, with the Nairobi All Share Index (NASI) increasing by 1.68 per cent.
The NSE 25 Index gained 3.14 per cent, while the NSE 20 Index rose by 1.37 per cent over the same period.
However, activity in the domestic secondary bond market weakened, with bond turnover declining by 10.35 per cent during the week.
Shilling Holds Steady Against Dollar
Meanwhile, the Kenyan shilling remained stable against major international and regional currencies, exchanging at KSh129.96 against the US dollar on November 5, unchanged from October 29.
The country’s foreign exchange reserves stood at USD14.699 billion, equivalent to 5.9 months of import cover.
The reserves remained above the CBK’s statutory minimum requirement of four months of import cover, providing a buffer against external economic shocks.
Treasury Securities Attract Strong Demand
In the government securities market, Treasury bills attracted bids worth KSh67.7 billion against an advertised amount of KSh28 billion at the November 5 auction, representing a performance rate of 241.8 per cent.
Interest rates on the 182-day and 364-day Treasury bills declined marginally, while the rate on the 91-day paper remained unchanged.
The November 4 Treasury bond auction also recorded strong investor demand, attracting bids worth KSh99.5 billion against an advertised KSh50 billion, translating to a performance rate of 198.9 per cent.
Money Market Remains Liquid
The CBK reported that the money market remained liquid, with commercial banks recording average excess reserves of KSh31.9 billion above the 3.25 per cent Cash Reserve Ratio requirement.
The Kenya Shilling Overnight Interbank Average (KESONIA) remained stable at 8.75 per cent.
However, average interbank transactions declined to 16 from 18 in the previous week, while the average value traded dropped to KSh9.2 billion from KSh12.2 billion.
Global Oil Prices Decline
In international markets, Kenya’s Eurobond yields declined by an average of 25.87 basis points during the week, reflecting improved conditions in the international bond market.
Global financial market conditions eased following the conclusion of the US mid-term elections, although inflation expectations in advanced economies remained elevated.
Murban crude oil prices dropped to USD94.04 per barrel on November 5 from USD110.46 on October 29, amid expectations of reduced risks of supply disruptions in the Middle East.
Conversely, spot gold prices increased to USD4,087.70 per ounce from USD4,020.40 over the same period.
The US Dollar Index weakened by 0.48 per cent against major international currencies, while the Bank of England raised its policy rate by 25 basis points to 4 per cent. Brazil’s central bank maintained its policy rate at 13.75 per cent despite rising inflationary pressures.