- NSE profit jumps 386% to Ksh 736.9 million in first half of 2026.
- Safaricom’s Ksh 204.3 billion block trade drives a major revenue boost.
- IPO activity returns as equity turnover and data revenue also surge.
The Nairobi Securities Exchange (NSE) recorded a sharp rise in profitability for the first half of 2026, with net profit climbing 386 percent to Ksh 736.9 million, up from Ksh 151.6 million in the same period last year.
The exceptional growth was driven largely by transaction levy income from several block trades, the return of initial public offerings (IPOs) to the bourse, and steady growth in data revenue.
Equity transaction levy income was the biggest contributor, surging 476 percent to Ksh 770.5 million. A major driver behind this was the Ksh 204.3 billion Safaricom block trade, in which the government sold part of its stake in the telecommunications firm to Vodacom.
However, underlying market activity remained strong even without factoring in the Safaricom deal, with equity turnover rising 111 percent when the transaction is excluded. Market watchers say this points to a broader recovery in trading activity rather than a one-off boost from a single large transaction.
Growth was also supported by other revenue streams. Bond levy income rose 22.4 percent, while data income grew 29.2 percent, reflecting expansion beyond equity trading alone.
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At the same time, the NSE maintained tight cost control, with total expenses remaining almost flat at Ksh 309.8 million. This allowed the surge in revenue to convert efficiently into profit, pushing the bourse’s annualised Return on Equity (ROE) to 51.5 percent, up from 14.8 percent in the first half of 2025.
Renewed listings activity
The strong half-year results coincided with notable developments in Kenya’s capital markets. The Kenya Pipeline Company (KPC) listing ended more than a decade without a new IPO on the NSE, while Family Bank joined the bourse through an introduction.
Analysts say these developments matter beyond trading commissions, as a deeper capital market opens opportunities across new listings, secondary-market trading, bonds, market data, investment products and other infrastructure services.
The resumption of IPO activity is seen as strategically important, with the potential to expand the listed universe, widen investor participation and deepen market liquidity over time.
Financial consultant and capital markets analyst Dedan Maina noted that although the Safaricom block trade significantly boosted the half-year numbers, the broader growth in equity turnover, bond activity, data revenue and new listings suggests the recovery extends well beyond a single transaction.
He described the results as early evidence of a capital-markets growth story, with the NSE positioned to benefit from deeper participation, liquidity and listings as Kenya’s capital markets mature.
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NSE Chief Executive Frank Mwiti described the half-year performance as an outstanding outcome that reflects the effectiveness of the bourse’s strategy, pointing to the surge in profit after tax as clear evidence that its strategic initiatives are translating into stronger market activity, higher investor participation, revenue growth and improved profitability.
He added that the results demonstrate the exchange is on the right path towards building a deeper, more vibrant and more accessible capital market, and that the performance highlights the strength and diversity of the NSE’s business model, with core trading delivering strong growth while other business lines also made meaningful contributions.
In terms of specific revenue lines, equity transaction levy income surged 476 percent to Ksh 770.5 million, fixed-income revenue grew 22 percent to Ksh 187.3 million, and data income rose 29 percent to Ksh 75.2 million, underscoring broad-based growth across the exchange’s business segments and reinforcing the strength of its diversified revenue strategy.
By Benedict Aoya
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