The Nairobi Securities Exchange (NSE) has reported a record 386 percent increase in net earnings to KES736.9 million for the six months ending June 30, marking the bourse's strongest profit jump since its listing in 2014.

In a performance update released on Friday, the NSE's activity was attributable to record-breaking block trade in Safaricom PLC shares which saw the government cede stake to the telco's parent firm Vodacom Group.

“The exceptional performance is a clear reflection of the strength and effectiveness of the NSE’s strategy, demonstrating that the strategic initiatives being implemented are translating into stronger market activity, increased investor participation, revenue growth and improved profitability,” NSE stated on X (formerly Twitter)

It added: “The results provide tangible evidence that the Exchange is on the right trajectory in delivering its strategic ambition of building a deeper, more vibrant and more accessible capital market.”

During the half, the NSE's equity market reported its most robust performance in years, with turnover soaring by 476 percent to KES322 billion. This growth was materially boosted by a single mega-deal: the transfer of a 15 percent government stake in Safaricom to South Africa's Vodacom Group for KES204.3 billion, executed on the exchange's block trade platform. 

Safaricom's transaction, which was the largest in the Nairobi bourse's history, significantly inflated trading volumes. However, even excluding this deal, equity market turnover rose by 111 percent year-on-year, indicating a broad-based recovery in investor participation in Kenya's financial markets.

Transaction levies

Revenue from equity transaction levies increased by 476 percent to KES770.5 million powering the total income for the Group to KES1.09 billion, up from KES511.6 million in H1 2025.

At the same time, the fixed income segment demonstrated robust health, with bond turnover increasing by 22 percent to KES1.703 trillion, while the nascent derivatives market experienced a 1,774 percent increase in turnover to KES637 million.

The Group's profitability was further enhanced by a significant increase in its share of gains from an associate, which jumped to KES136.6 million, alongside growth in data income and listing fees. 

NSE’s balance sheet strengthened considerably with total assets rising to KES3.62 billion from KES2.30 billion in June 2025. 

Total expenses remaining broadly flat, underscoring the operational leverage inherent in the exchange's business model. Annualised Return on Equity (ROE) surged to 51.5 percent, up from 14.8 percent in the previous year, highlighting the enhanced earnings capacity.

The period also marked a significant turning point for new listings, ending a decade-long drought in state-backed initial public offerings (IPOs) with the successful listing of the Kenya Pipeline Company (KPC). The IPO, which raised KES106 billion, was oversubscribed, signaling renewed confidence in Kenya's capital markets. 

President William Ruto, who rang the bell to mark the listing, stated that the proceeds would seed the newly established National Infrastructure Fund, aimed at financing priority projects. This was followed by the listing of Family Bank and the TRIFIC USD-Denominated REIT, diversifying the range of investment products available.

The sustained improvement in market sentiment was reflected across the NSE's benchmark indices. The NSE All Share Index (NASI) rose by 20.14 percent, while the NSE 20 Share Index gained 19.63 percent. This rally contributed to a KES817.2 billion increase in investor wealth during the first half of the year, pushing total market capitalisation to a record KES3.762 trillion.

Looking ahead, the NSE’s Board has stated its intention to focus on executing its strategic plan, with a key priority being the implementation of a new integrated market infrastructure system to improve technological capabilities and support the introduction of new products. The Board has resolved not to declare an interim dividend for the period.

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