Kenya’s deal-making activity rebounded sharply in 2025, with disclosed transactions rising to about Sh757 billion from roughly Sh40 billion a year earlier. The surge was driven by large share sales, corporate bonds, buyouts, and capital-raising transactions involving some of the country’s biggest companies.
Safaricom and East African Breweries Limited (EABL) dominated the year, accounting for the bulk of transaction value. Their activity revived segments that had been subdued in recent years, particularly the corporate bond market. The Nairobi Securities Exchange (NSE) also recorded new listings, rights issues, and bonus share issuances, signaling renewed confidence among issuers and investors.
As momentum carries into 2026, several pending and expected transactions could further reshape Kenya’s capital markets.
Renewed Appetite for Big Transactions
The rise in acquisitions and capital market activity points to a shift in corporate behaviour. After years of caution, firms are once again deploying capital to fund growth and restructure balance sheets.
Market participants attribute the renewed appetite to easing macroeconomic pressures, improved liquidity conditions, and the need to position businesses for long-term expansion. The trend is expected to continue in 2026, supported by regulatory changes and planned government divestments.
Anticipated IPOs and Listings in 2026
The NSE is preparing for its first initial public offer in nearly a decade. The government plans to sell a 65 percent stake in Kenya Pipeline Company (KPC) in a transaction valued at about Sh100 billion before the end of March 2026.
Family Bank is also expected to list by introduction in the first half of the year. The tier-two lender received shareholder approval in November and has already strengthened its balance sheet ahead of the listing.
These transactions could help revive primary market activity and broaden investment options at the bourse.
Banking Sector Braces for Capital Raising
Higher capital requirements set by the Central Bank of Kenya are likely to keep the banking sector active. Lenders were required to meet a minimum core capital of Sh3 billion by the end of 2025. This threshold will rise to Sh5 billion by the close of 2026 and eventually reach Sh10 billion by 2029.
To comply, banks are expected to pursue rights issues, mergers, acquisitions, and private placements. Capital raising in the sector is therefore set to remain a key feature of deal activity in the coming year.
Deals That Defined 2025
Diageo’s Exit From EABL and UDV Kenya
The largest transaction of the year came in December, when Diageo agreed to sell its entire 65 percent stake in EABL to Japan’s Asahi Holdings for $2.354 billion (Sh303.6 billion). The British multinational is also selling its 53.68 percent stake in UDV Kenya for $646 million (Sh83.3 billion). The transactions await regulatory approvals and are expected to close in 2026.
Treasury and Vodacom Reshape Safaricom Ownership
The government agreed to sell a 15 per cent stake in Safaricom to Vodacom Group for Sh204.3 billion. The deal reduces the State’s holding to 20 per cent. Vodacom also acquired rights to future government dividends and agreed to buy Vodafone’s remaining five per cent stake, lifting its total ownership to 55 per cent.
Safaricom’s Sh20 Billion Corporate Bond
Safaricom returned to the debt market with a Sh40 billion medium-term note program. Investor demand pushed the first tranche to Sh20 billion from an initial target of Sh15 billion. The five-year green bond pays a tax-free interest rate of 10.4 per cent.
Kalahari Takes Control of EAPC
Kalahari Cement acquireda controlling interest in East Africa Portland Cement after buying stakes from Holcim and the National Social Security Fund. The transactions transferred effective control of the cement producer to Tanzanian investor Edhah Abdallah Munif.
EABL’s Sh16.8 Billion Bond Issue
EABL issued Sh16.8 billion in corporate bonds under a Sh20 billion program. The notes refinanced an earlier bond at a lower interest cost, easing the brewer’s financing expenses.
Sh44.8 Billion Talanta Stadium Bond
Liaison Group raised Sh44.8 billion through an asset-backed bond to finance the construction of Talanta Stadium in Nairobi. The bond targets sophisticated investors and pays an annual return of 15.04 per cent.
Tullow Exits Turkana Oil Project
Tullow Oil completed the sale of its interest in the South Lokichar oil project to Gulf Energy for at least Sh15.5 billion, ending a 13-year presence in Kenya’s upstream oil sector.
New Listings and Market Entries
Packaging firm SKL Group was listed at the NSE through an introduction in July, becoming the first new entrant since 2020. Sanlam also dual-listed its Satrix MSCI World Feeder ETF, expanding investment options beyond domestic assets.
Capital Raises and Share Issuances
Family Bank raised Sh8 billion in a private placement ahead of its planned listing. Sanlam Kenya raised Sh2.5 billion through a rights issue to settle debt, increasing its parent’s ownership.
CIC Insurance, Williamson Tea, and Kapchorua Tea issued bonus shares to capitalize retained earnings, reflecting improved profitability and balance sheet strength.
Education and Manufacturing Deals
South Africa’s ADvTECH acquired Regis Runda Academy for Sh1.2 billion, expanding its footprint in Kenya’s private education sector. In manufacturing, a consortium of local millers acquired Savannah Cement for Sh3.8 billion, ending a prolonged receivership process.
Outlook for 2026
The breadth of transactions in 2025 suggests a market emerging from caution into recalibration. Government privatisations, bank capital requirements, and renewed investor interest are expected to keep deal flow active.
Rather than a one-off rebound, the record year appears to mark the start of a more sustained phase of capital market activity—one that could redefine ownership structures, funding models, and investment opportunities in 2026.
