Foreign Selling Deepens: NSE Market Value Falls KSh 134.41B in Three WeeksForeign Selling Deepens: NSE Market Value Falls KSh 134.41B in Three Weeks
Key Highlights
- Foreign investors sold a net KSh 1.50B ($11.58M) of Kenyan shares in the week to 16 October, double the KSh 741.92M ($5.72M) recorded the week before.
- Market capitalisation dropped KSh 74.35B ($572.76M) in the latest week to KSh 4.04T ($31.09B), its third straight weekly decline, leaving a three-week loss of KSh 134.41B ($1.04B).
- Net foreign outflows have reached KSh 17.79B ($137.05M) so far in 2026, above the full-year totals of 2025 and 2024, while the NSE All Share Index fell 1.81% to 240.50.
Foreign investors pulled a net KSh 1.50B ($11.58M) out of Kenyan shares in the week to 16 October, pushing the market's three-week value loss to KSh 134.41B ($1.04B).
Weekly figures from the Nairobi Securities Exchange show market capitalisation fell KSh 74.35B ($572.76M) to KSh 4.04T ($31.09B), the third consecutive weekly decline. For Kenyan savers, the slide cuts the paper value of share portfolios, although the market remains KSh 1.09T ($8.40B) above its level at the start of the year.
Mwenendo earlier reported on how the All Share Index extended its slide in mid-October. By the close of the week the benchmark stood 1.81% lower at 240.50 points, the NSE 20 had fallen 1.54% and the NSE 25 had dropped 1.94%.
Foreign selling gathers pace
Foreign investors sold KSh 1.87B ($14.41M) of shares and bought KSh 366.99M ($2.83M), leaving net selling of KSh 1.50B ($11.58M). That compares with KSh 741.92M ($5.72M) the week before, so the two-week net outflow is KSh 2.25B ($17.30M).
Provisional exchange data puts net foreign outflows since January at KSh 17.79B ($137.05M). That is above the KSh 11.60B ($89.36M) recorded in 2025 and the KSh 16.52B ($127.26M) in 2024, though it remains below the heavy withdrawals of 2018 and 2020.
March was the heaviest month this year at KSh 4.28B ($32.97M), followed by September at KSh 3.61B ($27.81M). Foreign investors have been net sellers since July, withdrawing about KSh 7.81B ($60.17M) through 16 October.
Turnover rises as prices fall
Equity turnover rose 62.41% to KSh 3.18B ($24.47M) even as the number of shares traded fell 17.88% to 75.67 million. Banking stocks made up about 71% of the turnover, which suggests the selling was concentrated in lenders.
Equity Group led trading at KSh 773.97M ($5.96M) and fell 3.84% to KSh 100.00 ($0.77). I&M Holdings followed at KSh 627.32M ($4.83M) and slipped 2.86% to KSh 85.00 ($0.65), while Safaricom traded KSh 540.46M ($4.16M) and KCB Group KSh 474.14M ($3.65M).
Mwenendo earlier reported on how trading in NCBA shares is due to pause from 21 October as the Nedbank takeover completes, which will remove another large bank stock from daily trading for almost two weeks.
Government paper still draws demand
Data from the Central Bank of Kenya show bids of KSh 68.50B ($527.72M) against KSh 28B ($215.70M) offered at the 15 October Treasury bill auction. The 91-day bill yield eased to 8.75% and the 182-day yield to 8.86%.
Bond turnover fell 25.50% to KSh 40.57B ($312.54M) from KSh 54.46B ($419.54M). The shilling firmed slightly to KSh 129.81 per dollar from KSh 129.94, while foreign exchange reserves declined to KSh 1.91T ($14.69B).
The pattern is one of money moving between asset classes: demand for Treasury paper remains strong while foreign holders trim equities. Whether that continues will depend on the next weekly outflow figures and on how banks' share prices behave after the NCBA pause.
In Summary
- Who is selling Kenyan shares?
- Foreign investors, who have been net sellers on the Nairobi Securities Exchange since July.
- What happened in the week to 16 October?
- Foreign investors recorded net selling of KSh 1.50B ($11.58M), up from KSh 741.92M ($5.72M) the week before.
- When did the market lose value?
- Over the three weeks to 16 October, market capitalisation fell KSh 134.41B ($1.04B) to KSh 4.04T ($31.09B).
- Where was the selling concentrated?
- Banking stocks made up about 71% of equity turnover, led by Equity Group, I&M Holdings, Safaricom and KCB Group.
- Why does it matter?
- Year-to-date net foreign outflows of KSh 17.79B ($137.05M) already exceed the full-year totals for 2025 and 2024.
- How are other markets behaving?
- Treasury bill auction bids were more than twice the amount offered, and the shilling firmed to KSh 129.81 per dollar.