Banking stocks at the Nairobi Securities Exchange have reached an unprecedented milestone, commanding 42.5 percent of all investor wealth on the bourse — a record high driven by a year-long price rally and Family Bank’s fresh listing. The sector’s combined valuation now stands at 1.56 trillion shillings, having surged 70.4 percent from the 913.4 billion shillings recorded twelve months ago.
That growth has been dramatic enough to unseat Safaricom as the bourse’s single most valuable entity. A year ago, the telco — then worth 967.6 billion shillings — was valued higher than the entire banking sector combined. Today, Safaricom’s market capitalisation sits at 1.32 trillion shillings, up 36 percent, yet banks have outpaced it by growing at roughly twice that rate on the back of acquisition deals, stronger profits, and higher dividends. Together, the two sectors account for 78 percent of the NSE’s total market capitalisation of 3.679 trillion shillings.
The energy segment ranks third with a valuation of 283.6 billion shillings, making up 7.7 percent of the market, while manufacturing follows at 280.4 billion shillings or 7.6 percent. Analysts warn that the rising dominance of banks has deepened concentration risk at an exchange already reliant on a small group of blue-chip counters.
Family Bank’s listing by introduction added 37.2 billion shillings to the sector’s market cap. The tier two lender floated 1.66 billion shares at an entry price of 18 shillings, but the stock had already climbed to 22.40 shillings by the close of trading on Thursday, reflecting healthy demand from investors.
All other listed banks also posted double-digit share price gains over the period. Co-operative Bank of Kenya led the pack with a 104.7 percent rise to 34.80 shillings, doubling its market value from 99.7 billion to 204.2 billion shillings. Equity Group, the largest listed bank by market capitalisation, added 120.4 billion shillings to its valuation, reaching 298.12 billion shillings after a 67.7 percent jump in share price to 79 shillings. KCB Group gained 67.6 percent to 74.50 shillings, lifting its valuation by 96.6 billion shillings to 239.4 billion shillings, while Absa Group surged 73.2 percent to 32.30 shillings, adding 74.1 billion shillings to reach a market cap of 175.4 billion shillings.
Other lenders delivered equally impressive returns. DTB’s valuation rose 87.5 percent to 38.9 billion shillings, I&M Group climbed 79.7 percent to 105.3 billion shillings, NCBA Group advanced 58.2 percent to 151.16 billion shillings, and Stanbic Holdings gained 79.8 percent to 114.6 billion shillings. Standard Chartered Bank Kenya posted a more measured 14.3 percent gain to 126.5 billion shillings, BK Group rose 64.6 percent to 48.2 billion shillings, and HFCB Group added 35.4 percent to reach 17.86 billion shillings — rounding out a sector-wide rally that has reshaped the landscape of Kenyan equities.
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