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The Nairobi Securities Exchange (NSE) ended 2024 on a high note, with key indices showing strong upward momentum heading into 2025 after a year of mixed performance.

Data from the NSE revealed that the benchmark NSE 20 Share Index closed at 2,010.65, gaining 16.91 points and surpassing the 2,000 mark for the first time in several years. Market capitalisation, a key measure of investor wealth, rose by 35 per cent to Sh1.939 trillion ($14.98 billion), representing a $3.83 billion increase in investor wealth for the year.

Investors a were Sh419.5 billion richer in the 10 months to October 2024 amid renewed market confidence, especially from domestic investors, as the market rally continued.

The recovery was driven by gains in blue-chip stocks, including major banks and telecommunications firms. The banking sector was a standout performer, with significant gains from Co-op Bank, Equity Bank, I&M Bank, KCB Group, Standard Chartered Bank, and Absa.

Their growth was attributed to higher interest margins, increased SME loan uptake, and strategic investments in digital banking. Favorable regulatory changes, including adjustments to risk-weighted capital requirements, further supported lending activity and sector performance.

Energy stocks also contributed to the rally, with KenGen benefiting from investments in renewable energy projects.

Kenya Power saw its share price soar by 182.4 per cent, leveraging its role in distributing renewable energy.

East African Portland Cement recorded a 283 per cent surge, driven by rising demand for construction materials linked to the government’s affordable housing agenda and infrastructure projects under President William Ruto’s administration.

Top ten gainers

Other notable gainers included Kenya Orchards, which saw a 259 per cent increase in share price, Liberty Kenya, and EABL, reflecting a diverse range of market trends.

Kenya Orchards capitalized on rising demand for local agricultural products amid government food security initiatives, Liberty Kenya benefited from increased life insurance uptake, and EABL enjoyed robust consumer spending on premium beverages.

The NSE also implemented significant changes in 2024, including the introduction of an upgraded trading system that improved transaction efficiency and market transparency. This, along with increased foreign investor participation and the lifting of capital gains tax for certain asset classes, boosted market liquidity.

These factors contributed to the NSE All Share Index posting a 34.06 per cent gain—the best annual return since 2013—compared to a modest six per cent rise in 2023, signaling renewed investor confidence in Kenya’s economic outlook.

Unlike 2023, when agricultural stocks led due to favourable weather conditions, 2024 marked a shift toward infrastructure and financial services, aligning with the country’s Vision 2030 development goals.

Despite a listing dry spell at the bourse, the NSE’s strong performance has positioned it as a critical player in mobilizing capital for Kenya’s development initiatives, with investors and policymakers optimistic about the country’s economic trajectory as 2025 begins.