Nairobi Securities Exchange records strong growth despite global uncertainty
By Sharon Atieno, June 12, 2026The Nairobi Securities Exchange has recorded significant gains over the past year, reflecting improved investor activity and stronger market performance despite emerging global economic headwinds.
Speaking during the release of the 2026/27 budget on Thursday, June 12, 2026, Treasury Cabinet Secretary John Mbadi said the capital markets have shown notable resilience over the period under review.
“Activities in the Nairobi Securities Exchange have improved over the past year, with the NSE 20 Share Index rising by 59.9 per cent to 3,491 points in May 2026, up from 2,183 points in May 2025,” he said.
During the same period, market capitalization expanded by 61.6 per cent to Ksh 3,412 billion, from Ksh 2,111 billion, reflecting increased investor participation and improved market valuations.
Market dips amid global uncertainty
However, Mbadi noted that despite the strong annual performance, short-term pressures were evident in recent months.
“Activities in the Nairobi Securities Exchange have improved over the past one year,” Mbadi said.
Between February and May 2026, the NSE 20 Share Index declined by 5.5 per cent, as investors adopted a cautious stance amid rising global uncertainty.
He attributed the slowdown to heightened concerns linked to geopolitical tensions, particularly the conflict in the Middle East, which has continued to affect global financial markets and investor sentiment.
“Between February and May 2026, the NSE 20 Share Index declined by 5.5 per cent as investors became cautious due to rising global uncertainty associated with the conflict in the Middle East,” he added.
The Treasury said the performance highlights both the resilience of Kenya’s capital markets and their sensitivity to external shocks, especially in an increasingly interconnected global economy.
“Market performance remains sensitive to global developments, particularly geopolitical tensions that influence investor confidence,” he said.
Global tensions weigh on investor sentiment
The global uncertainty referenced in the market performance comes amid escalating geopolitical tensions in the Gulf region, where renewed hostilities between the United States and Iran have further unsettled international markets.
According to international reports, the fragile ceasefire between the two countries has been repeatedly tested following exchanges of strikes involving drones, missiles and radar sites in the Gulf.
Global markets on edge amid US–Iran escalation
The United States military said it intercepted Iranian drones near the Strait of Hormuz and carried out targeted strikes on surveillance radar sites, while Iran reportedly responded with missile attacks on US-linked facilities in the region.
The escalation has raised fears of broader instability in global energy routes, particularly through the Strait of Hormuz, a critical passage for global oil and gas shipments.
Analysts say the developments have contributed to heightened volatility in global financial markets, influencing investor behaviour in emerging economies such as Kenya.