Kenya’s listed companies gained nearly Ksh 360 billion in combined market value between June and September 2026, pushing the Nairobi Securities Exchange (NSE) past the Ksh 4 trillion mark for the first time, even as investors traded far fewer shares during the quarter.

The Capital Markets Authority’s (CMA) quarterly statistical bulletin shows that the NSE’s market capitalisation climbed to Sh4.12 trillion in September, from Ksh 3.76 trillion in June, representing a 9.57 per cent increase in three months.

The milestone came as equity turnover dropped by 72.44 per cent to Ksh 72.72 billion from Ksh 263.87 billion in the second quarter. The number of shares traded also declined by 75.74 per cent to 1.87 billion, compared with 7.7 billion shares in the preceding quarter.

The figures reveal a market in which listed shares became more valuable despite a substantial reduction in trading activity. Market capitalisation measures the total market value of listed shares, while equity turnover captures the value of shares traded over a given period. The two indicators therefore measure different aspects of market performance.

CMA chief executive Wyckliffe Shamiah said the market’s valuation milestone demonstrated the confidence, resilience and competitiveness of Kenya’s capital markets.

The market’s performance was supported by gains in its benchmark indices, which rose during the three months to September.

The NSE 20-Share Index increased by 14.95 per cent to 4,316.96 points from 3,755.44 points in June. The Nairobi All Share Index (NASI) gained 9.57 per cent to close at 245.60 points, up from 224.15 points.

The gains were more pronounced over 12 months. The NSE 20-Share Index rose by 45.22 per cent from 2,972.64 points in September 2025, while NASI increased by 38.96 per cent from 176.74 points.

Market capitalisation was 48.02 per cent higher than the Ksh 2.78 trillion recorded in September last year, reflecting the substantial rise in the combined value of listed companies over the period.

However, the quarterly fall in turnover indicates that the increase in market value was not accompanied by a similar rise in share transactions.

Equity turnover nevertheless remained above its level a year earlier. The Ksh 72.72 billion recorded during the third quarter represented a 57.32 per cent increase from the Ksh 46.23 billion traded in the corresponding period of 2025.

The sharp quarterly decline was also measured against June’s unusually high activity, when shares worth Sh233.55 billion changed hands. Turnover fell to Sh16.15 billion in July before recovering to Sh27.66 billion in August and Sh28.91 billion in September.

Bond market records stronger activity

The bond market recorded an increase in turnover as equity trading slowed. Government securities turnover rose by 34.62 per cent to Ksh 837.13 billion in the third quarter, from Ksh 621.83 billion in the previous quarter.

The government raised Sh585.32 billion through Treasury bond issuances in the primary market during the period. The issuances included 12 bond reopenings and three switch bonds.

The difference between equity and bond market activity points to contrasting trends across Kenya’s capital markets. While share trading declined from the previous quarter, transactions in government securities increased.

Collective investment schemes also recorded growth. Their assets under management reached Sh948.7 billion in June 2026, up 11 per cent from Ksh 851.7 billion in March. The CMA attributed the increase to the expansion of existing funds, additional funds reporting under umbrella schemes and increased marketing by fund managers.

Despite the NSE’s record valuation, the CMA reported no initial public offerings, additional share offers, rights issues or listings by introduction during the third quarter.

These are among the channels through which companies can raise fresh equity capital from investors. Their absence means the quarter’s record market valuation did not coincide with fundraising through these routes.

The figures highlight the distinction between a rising stock market and the use of the exchange to finance business expansion. Although listed companies recorded substantial gains in market value, the third-quarter data showed lower share-trading activity and no new equity fundraising through the reported channels.