The Nairobi Securities Exchange (NSE) delivered the second-highest dollarized returns in Africa in 2025, rewarding foreign investors with gains of more than 50 percent as blue-chip stocks extended a strong rally that began the previous year.
Data from the Morgan Stanley Capital International (MSCI) frontier and emerging markets indices show that Kenya’s equity market returned 52.2 percent in dollar terms, placing it behind only Egypt among the 10 African exchanges tracked.
The NSE closed the year at 1,391.28 points, supported by rising share prices among its largest listed companies and a stable exchange rate that preserved gains for offshore investors.
Egypt leads, Kenya follows closely
Egypt topped the rankings with a 99 percent return, helped by sharp price gains at heavyweight firms such as Commercial International Bank and TMG Holding. The Egyptian pound also strengthened by 6.2 percent against the dollar, amplifying returns for foreign investors.
Nigeria ranked third with 47.2 percent, followed by Zimbabwe (44.5 percent), Côte d’Ivoire (43.6 percent), Morocco (36.3 percent), and Tunisia (32.5 percent). South Africa posted a 30.1 percent gain, while Senegal returned 23.4 percent. Mauritius trailed with just 2.2 percent.
South Africa and Egypt are classified by MSCI as emerging markets, while Kenya and the rest fall under the frontier markets category.
Blue chips drive Kenya’s performance
Kenya’s MSCI representation includes 18 companies, spread across the frontier markets and small-cap indices. On the main frontier index, Safaricom, Equity Group, EABL, KCB Group, Co-operative Bank of Kenya, and Standard Chartered Bank Kenya remain the core drivers.
Safaricom emerged as the strongest performer among large-cap stocks, gaining 66.3 percent in 2025. KCB followed with a 58.1 percent rise, while EABL added 49.9 percent.
Safaricom’s influence on the index remains significant. The telco carries the highest weighting due to its market capitalization and liquidity, meaning its price movements have an outsized effect on overall returns.
Small caps outperform
Returns among small-cap stocks were even stronger. Kenya Power led the pack with a 182.7 percent gain, followed by KenGen at 152.2 percent, Kenya Re at 135.2 percent, and HF Group at 120.8 percent.
Other firms on the MSCI frontier small-cap index include DTB Group, Jubilee Holdings, CIC Insurance Group, Centum Investment Company, Williamson Tea Kenya, and Carbacid Investments.
Currency stability preserves dollar gains
Exchange-rate movements played a key role in shaping foreign investor returns. In 2024, Kenya topped Africa after the shilling strengthened by 21 percent against the dollar, significantly boosting dollarized returns.
In 2025, the shilling remained broadly stable, posting a marginal 0.1 percent gain. This meant that foreign investors’ dollar returns closely mirrored gains recorded in local currency terms, unlike in markets where currency weakness eroded equity performance.
For offshore investors, currency stability is critical. A stronger or steadier local currency increases the dollars received on exit, while depreciation can wipe out equity gains.
Sustained momentum into 2026
Kenya’s second-place ranking underscores the growing appeal of the NSE among global frontier-market investors. Strong corporate earnings, falling interest rates, improved liquidity, and stable currency conditions combined to sustain momentum after 2024’s record rally.
While Egypt took the top spot in 2025, Kenya’s back-to-back strong showing signals a market that has regained investor confidence and positioned itself as one of Africa’s most consistent equity performers.
