NSE market capitalisation falls to Ksh3.996T as Treasury Bill rates ease
Kenya’s equity market weakened in the week ending October 22, 2026, with market capitalisation declining to Ksh3.996 trillion even as investors submitted Ksh28.8 billion in bids for Treasury bills against a government target of Ksh28 billion. The Central Bank of Kenya’s Weekly Bulletin released on October 23, 2026, shows that the Nairobi Securities Exchange (NSE) […]
The Nairobi Securities Exchange (NSE) experienced a decline in market capitalisation to Ksh3.996 trillion during the week ending October 22, 2026, as investors submitted Ksh28.8 billion in bids for Treasury bills, surpassing the government's target of Ksh28 billion. The Central Bank of Kenya (CBK) reported that the NSE All Share Index (NASI) fell by 4.56 percent, the NSE 25 Share Index dropped by 0.51 percent, and the NSE 20 Share Index declined by 0.39 percent.
Market capitalisation decreased by 0.38 percent to the mentioned level from Ksh4.011 trillion a week earlier.
Despite the decline in share indices, trading activity on the NSE increased significantly, driven by a major transaction involving Kenya Power and Lighting Company (KPLC). The CBK noted that the total shares traded increased by 6,156.13 percent, while equity turnover rose by 1,420.48 percent. This surge was attributed to a block trade of KPLC shares worth 4.5 billion shares, totaling KSh 42.5 billion, accounting for a substantial portion of the reported activity.
The 91-day, 182-day, and 364-day Treasury bill rates all declined in the auction held on October 22. The average rate on the 91-day Treasury bill dropped to 8.748 percent from 8.750 percent in the previous auction, while the 182-day rate eased to 8.859 percent from 8.860 percent, and the 364-day rate declined to 9.027 percent from 9.038 percent.
Demand for the shorter-term instruments was stronger, with Ksh14.34 billion in bids for the 91-day paper, compared to the Ksh8 billion offered, and Ksh7.69 billion and Ksh6.80 billion for the 182-day and 364-day securities, respectively, against Ksh10 billion offered for each. Consequently, average borrowing rates edged lower across all three maturities.
As of October 16, Kenya's gross domestic debt stood at Ksh7.822 trillion, with government securities comprising Ksh7.716 trillion of the total, consisting of Ksh6.501 trillion in Treasury bonds and Ksh1.215 trillion in Treasury bills. The CBK bulletin highlighted contrasting signals for investors and policymakers, with equity indices declining, government securities attracting bids above the auction target, Treasury bill rates easing slightly, and international bond yields increasing.
These movements suggest that investment conditions differed across asset classes rather than indicating a uniform improvement or deterioration across all markets.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
