In the week to October 23, the Nairobi Securities Exchange saw its main indices slip, with the Nairobi All Share Index down 2.3 per cent and the NSE 25 falling 2.8 per cent, while a KSh42 billion block trade in Kenya Pipeline Company dominated market turnover.

Standard Investment Bank reported that total turnover rose to USD348.3 million, a 1,324.7 per cent jump from the previous week, and that the KPC transaction represented 93.4 per cent of that activity, generating roughly USD327.9 million.

KPC shares emerged as the top performer, climbing 17.2 per cent to close at KSh10.55 and registering the highest trading volume for the period.

Excluding the KPC deal, the market showed weakness, especially among telecom and banking stocks; Safaricom slipped 4.6 per cent to KSh33.30, KCB Group fell 4.7 per cent to KSh85.25, Equity Group dropped 2.5 per cent to KSh97.50 and DTB eased 0.3 per cent to KSh186.25.

Standard Group recorded the steepest loss among the highlighted equities, losing 8.2 per cent to KSh5.82, while Express Kenya fell 6.9 per cent to KSh7.02, Family Bank declined 6.7 per cent to KSh25.80, Home Afrika slipped 6.5 per cent to KSh1.00 and Olympia Capital Holdings dropped 6.4 per cent to KSh7.02.

Some smaller counters bucked the trend, with Uchumi Supermarket rising 8.5 per cent to KSh1.40, the NSE’s own shares gaining 5 per cent to KSh31.50, Longhorn Publishers up 3.1 per cent to KSh2.69 and Africa Mega Agricorp advancing 2.6 per cent to KSh330, the latter up 368.1 per cent year-to-date.

Car & General remained the best year-to-date performer, up 423 per cent despite a 3.4 per cent weekly decline to KSh266.75, while Britam and I&M Holdings posted year-to-date gains of 102.7 per cent and 91.4 per cent respectively.

The weakest year-to-date mover was Eveready East Africa, down 35.8 per cent to KSh0.88, followed by WPP Scangroup (-27.5 per cent), Umeme (-25.6 per cent) and Home Afrika (-25.4 per cent).

Foreign investors were net sellers, pulling out USD9.4 million, yet their share of market activity rose to 38.4 per cent from 30.2 per cent the week before; Safaricom recorded the largest foreign outflow at about USD5.0 million, KCB Group USD2.4 million and Equity Group USD1.6 million.

The NSE itself logged foreign net outflows of roughly USD225,200. Kenya Power attracted the biggest foreign inflow at USD77,700, followed by Carbacid Investments (USD32,100) and Standard Chartered Bank Kenya (USD25,500); East African Breweries Limited and Liberty Kenya Holdings saw smaller inflows of USD3,700 and USD2,200 respectively.

SIB also noted that Kenya’s economy expanded by 5.1 per cent in the second quarter of 2026, up from 4.9 per cent a year earlier, driven by electricity and water (7.7 per cent), information and communication (7.2 per cent), transport and storage (4.4 per cent) and manufacturing (2.2 per cent); agriculture grew 3.5 per cent while milk deliveries fell 3.1 per cent.

Energy costs surged, with crude oil prices rising 54.9 per cent to USD104.45 per barrel and diesel climbing 32 per cent to KSh217.80 per litre, contributing to a rise in quarterly inflation to 6.23 per cent from 3.89 per cent.

The Stanbic Bank Purchasing Managers’ Index fell to 46.6 in May before reaching 50.0 in June, the level that separates contraction from expansion, and the Central Bank of Kenya projected overall 2026 growth of 5 per cent.

Standard Investment Bank upgraded its recommendation on Dangote Petroleum Refinery and Petrochemicals to Buy, raising the fair-value estimate to USD0.63 from USD0.45 and citing stronger earnings, improved efficiency and higher volumetric yields.

Kakuzi Plc issued an updated profit warning, stating that 2026 net earnings would be markedly lower than the prior year because of a downturn in the global macadamia market and reduced yields; its shares closed the week at KSh435.30, down 0.4 per cent on the month but up 8.3 per cent year-to-date.

Investors will watch the Dangote IPO scheduled for October 27 and Kenya’s October inflation release on October 30 for further market signals.