In our Cytonn Report this week, we analysed the performance of Kenya’s Equities, Fixed Income and the
Real Estate markets for the week ended, with a special focus on Nairobi Metropolitan Area Residential
Report 2025. Below are the highlights;
a) Fixed Income
During the week, T-bills were oversubscribed for the second consecutive week, with the overall
subscription rate coming in at 179.7%, albeit lower than the subscription rate of 219.5% recorded the
previous week. Investors’ preference for the shorter 91-day paper persisted, with the paper receiving
bids worth Kshs 8.1 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 202.2%, lower
than the oversubscription rate of 258.4%, recorded the previous week. The subscription rates for the
182-day decreased to 53.6% from the 208.3% recorded the previous week while the 364-day papers
increased to 296.8% from the 215.0% respectively recorded the previous week. The government
accepted a total of Kshs 37.4bn worth of bids out of Kshs 43.1 bn bids received, translating to an
acceptance rate of 86.8%. The yields on the government papers were on a downward trajectory with the
yields on the 182-day paper decreasing the most by 1.8 bps to 8.58% from the 8.60% recorded the
previous week while the yields on the 91-day and 364-day papers decreased by 1.2 bps and 0.8 bps
respectively to 8.37% and 10.00% from the 8.38% and 10.01% respectively recorded the previous week;
During the week, The Energy and Petroleum Regulatory Authority (EPRA) released their monthly
statement on the maximum retail fuel prices in Kenya, effective from 15th May 2025 to 14th June 2025.
Notably, the maximum allowed price for Super Petrol, Diesel and Kerosene remained unchanged at Kshs
174.6, Kshs 164.9 and Kshs 150.0 per litre respectively;
b) Equities
During the week, the equities market was on an upward trajectory, with NSE 10 gaining the most by 6.6%
while NASI, NSE 25 and NSE 20 gained by 5.8%, 5.6% and 4.1% respectively, taking the YTD performance
to gains of 7.1%, 6.7%, 3.7% and 3.2% for NASI, NSE 20, NSE 25 and NSE 10. The equities market
performance was driven by gains recorded by large-cap stocks such as KCB Bank, EABL and Co-operative
Bank which increased by 11.3%, 10.2%, and 8.8%, respectively. The performance was however weighed
down by losses recorded by large cap stock such as Bamburi of 4.4%;
Additionally, in the regional equities market, the East African Exchanges 20 (EAE 20) share index gained
by 0.1% to 100.1 from 100.0 recorded the previous week, attributable to gains recorded by large cap
stocks such KCB Group, Safaricom and Cooperative Bank of 10.6%, 7.6% and 5.9% respectively, the
performance was however weighed down by losses recorded by large cap stocks such as CRDB Bank,
Stanbic Uganda Holdings and I&M Rwanda of 0.8%, 0.8% and 0.2% respectively;
During the week Cooperative Bank released their Q1’2025 financial results, highlighting that their profit
after tax (PAT) increased by 5.3% to Kshs 6.9 bn, from Kshs 6.6 bn in Q1’2024. The performance was
mainly driven by a 12.8% increase in Total Operating Income to Kshs 21.2 bn, from Kshs 18.8 bn in
Q1’2024, which was however weighed down by the 19.1% increase in Total Operating expense to Kshs
11.7 bn in Q1’2025, from Kshs 9.9 bn in Q1’2024. The increase in Operating expenses was largely driven
by the 32.6% increase in loan loss provisions expense to Kshs 2.1 bn from Kshs 1.6 bn in Q1’2024;
c) Real Estate
During the week, the Central Bank of Kenya (CBK) released the Quarterly Economic Review Q4 2024,
which highlighted the status and performance of Kenya’s economy of the period under review;
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During the week, the Kenya National Bureau of Statistics (KNBS) released the Leading Economic
Indicators (LEI) March 2025 Reports, which highlighted the performance of major economic indicators;
During the week, Superior Homes Kenya (SHK), a real estate developer, and KCB Bank Kenya, formalized
a strategic partnership through a Memorandum of Understanding (MOU), that aims to bridge the gap
between property development and financing, addressing long-standing challenges in Kenya’s Real Estate
sector;
During the week, Africa Travel Investments, a tourism investment firm trading as Africa Travel and
backed by a wealthy figure such as Aliko Dangote, has made a 100% acquisition worth Kshs 4.0 bn of
Pollman’s Tours and Safaris Limited (Pollman’s) following an unconditional approval from the
Competition Authority of Kenya (CAK);
On the Unquoted Securities Platform, Acorn D-REIT and I-REIT traded at Kshs 25.4 and Kshs 22.2 per unit,
respectively, as per the last updated data on 2 nd May 2025. The performance represented a 27.0% and
11.0% gain for the D-REIT and I-REIT, respectively, from the Kshs 20.0 inception price. Additionally, ILAM
Fahari I-REIT traded at Kshs 11.0 per share as of 2 nd May 2025, representing a 45.0% loss from the Kshs
20.0 inception price. The volume traded to date came in at Kshs 1.2 mn shares for the I-REIT since
inception in November 2015;
d) Focus of the Week
This week, we update our previous research with the Nairobi Metropolitan Area (NMA) Residential
Report 2025 titled ‘Navigating Opportunities in a Resilient Market’ by analyzing the residential sector's
performance in the region in terms of price appreciation, rental yields, and market uptake, based on the
coverage of 35 regions within the Nairobi Metropolis;
Click the link below to read the Cytonn Weekly report: https://cytonnreport.com/research/nairobi-metropolitan-area-11
