Global Markets
Global markets reversed sharply after nearing record highs, following President Trump’s announcement of a 100% tariff on Chinese goods in response to new Chinese export controls on rare earth metals. The resulting sell-off wiped out nearly $2 trillion in market value, as investors feared a renewed U.S.–China trade war.
U.S. and European indices closed lower, with the Dow Jones down 2.7% and the S&P 500 down 2.4%, while Japan’s Nikkei 225 surged 5.1% after a pro-growth policy victory. Bond yields fell across major economies as investors sought safe-haven assets.
Kenya Equity Markets
The Nairobi All Share Index (NASI) fell 3.3% to 172.58 points as bearish sentiment dominated the week. Trading activity declined by 17.1% to KES 1.74 billion, with domestic investors accounting for 63.8% of turnover.
Car & General led the week’s gainers with a 13.7% rise, while Kenya Power & Lighting Company (KPLC) fell 13.5% after reporting an 18.7% decline in earnings to KES 24.47 billion. Despite a higher dividend payout, weak financials weighed on investor sentiment.
Sector-wise, automobiles and accessories outperformed, while energy and petroleum lagged due to weakness in KPLC and Umeme. Analysts expect short-term bearish momentum to persist, pending upcoming banking sector and Safaricom results in November, which could reignite bullish sentiment.
Fixed Income Market
Treasury bill performance improved to 106.85%, with strong demand for longer-tenor securities. Yields eased across all maturities following the CBK’s 25 bps rate cut to 9.25%, part of its ongoing easing cycle.
Declining spot rates—especially the 364-day paper down to 9.39%—were supported by improved external financing, including a new $1.5 billion Eurobond that has already refinanced $628 million of Kenya’s 2028 issue. This move is expected to strengthen the country’s credit outlook and reduce domestic borrowing pressures.
Macroeconomic Update
Kenya’s economy remains resilient. GDP growth reached 5% in Q2 2025, while the PMI rose to 51.9, reflecting expansion across key sectors. Inflation edged up to 4.6%, still within the CBK’s target range, and reserves stood at USD 10.76 billion (4.7 months of import cover).
The CBK is likely to maintain its accommodative stance to support growth, though lower nominal rates could temper foreign investor appetite.
Corporate Actions
| Company | Dividend Type | Amount (KES) | Book Closure | Payment Date |
|---|---|---|---|---|
| EABL Plc | Final | 5.50 | 16-Sep-25 | 28-Oct-25 |
| KPLC | Final | 0.80 | 2-Dec-25 | 30-Jan-26 |
| KCB Group | Final | 4.00 | 3-Sep-25 | 11-Nov-25 |
| ABSA Bank Kenya | Interim | 0.20 | 19-Sep-25 | 15-Oct-25 |
| B.O.C Kenya | Final | 2.50 | 20-Sep-25 | 14-Oct-25 |
| Standard Chartered Bank | Final | 8.00 | 11-Sep-25 | 7-Oct-25 |
| Centum Investment | Final | 0.32 | 9-Oct-25 | 19-Dec-25 |
Looking Ahead
Markets will be closely watching U.S. corporate earnings from banking and semiconductor sectors next week. Positive surprises could help stabilize global sentiment after the tariff-driven pullback.
