Today’s market analysis on behalf of Daniel Wesonga, Senior Sales Manager at Pepperstone
24th January 2025
Kenyan equities are expected to maintain their positive momentum following Thursday’s performance, where the NSE 20-Share Index rose nearly one percent. The growth across all major indices was led by strong foreign investor participation, with the banking sector leading the way. KCB Group reached its highest level since March 2022, supported by strong market sentiment, while EA Cables and small caps also saw notable gains. Safaricom remained the most traded stock, highlighting its dominant market position. However, declines in Kenya Airways and a few other stocks exhibit a mixed but optimistic outlook, particularly in the utility sector, which is expected to sustain growth and attract more foreign capital, further contributing to investor confidence.
In the meantime, the Kenya Investment Authority and the Kenya Private Sector Alliance have teamed up to advance the country’s business environment by streamlining investment processes and promoting pro-business policies. This collaboration aims to support economic growth by developing private-sector activity and encouraging public-private partnerships. With improved business conditions, Kenya is likely to see an increase in both domestic and foreign investment, providing stability and liquidity to the financial markets.
During their Western Kenya tour, President William Ruto and Deputy President Kithure Kindiki emphasized the government’s commitment to equitable development. They launched key projects, such as the River Nzoia flood control dyke, the KES 366 million Luanda Modern Market, and new educational and healthcare facilities, all aimed at strengthening infrastructure and improving agricultural productivity. These initiatives are expected to benefit sectors such as construction and utilities while reinforcing positive investor sentiment, as the government focuses on inclusive economic growth and sustainable development.