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. Below are the highlights;
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Fixed Income:
This week, T-bills were oversubscribed for the second consecutive week, with the overall subscription rate coming in at 166.7%, higher than the subscription rate of 115.9% recorded the previous week. Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 16.2 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 405.8%, significantly higher than the subscription rate of 49.1%, recorded the previous week. The subscription rate for the 182-day paper decreased to 32.0% from the 76.2% recorded the previous week, while that of the 364-day paper increased to 205.9%, from the 182.3% recorded the previous week. The government accepted a total of Kshs 25.5 bn worth of bids out of Kshs 40.0 bn bids received, translating to an acceptance rate of 63.8%. The yields on the government papers were on a downward trajectory with the yields on the 91-day, 182-day and 364-day papers decreasing by 1.2 bps, 1.2 bps and 0.8 bps respectively to 8.11%, 8.41% and 9.72% respectively, from the 8.13%, 8.43% and 9.73% respectively recorded the previous week;
In the primary bond market, the government is looking to raise Kshs 90.0 bn for funding infrastructure projects through the reopened bonds; IFB1/2018/015 and IFB1/2022/019 with fixed coupon rates of 12.5% and 13.0% respectively and tenors to maturity of 7.5 years and 15.6 years respectively. The period of sale for the two bonds opened on Tuesday, 21st July 2025 and will close on 13th August 2025. Our bidding range for IFB1/2018/015 and IFB1/2022/019 is 13.00%-13.50% and 13.75%-14.50% respectively;
During the week, the National Treasury gazetted the revenue and net expenditures for the year FY’2024/2025, ending 30th June 2025, highlighting that the total revenue collected as at the end of June 2025 amounted to Kshs 2,430.1 bn, equivalent to 97.4% of the revised estimates III of Kshs 2,496.2 bn for FY’2024/2025.
We are projecting the y/y inflation rate for July 2025 to increase to within the range of 3.9% - 4.4% mainly on the back of increased fuel prices in June.
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Equities:
During the week, the equities market was on an upward trajectory, with NASI, NSE 25, NSE 10 and NSE 20 gaining by 1.6%, 1.6%, 1.5% and 1.4% respectively, taking the YTD performance to gains of 28.1%, 23.2%, 18.7% and 18.2% for NASI, NSE 20, NSE 25 and NSE 10 respectively. The equities market performance was driven by gains recorded by large-cap stocks such as BAT, KCB and NCBA of 4.6%, 2.8% and 2.8% respectively. The performance was however weighed down by losses recorded by large cap stocks such as DTB-K, Co-operative Bank of Kenya and ABSA Bank Kenya of 1.6%, 0.6% and 0.3% respectively;
Additionally, in the regional equities market, the East African Exchanges 20 (EAE 20) share index lost by 0.1%, attributable to losses recorded by large cap stocks such as Tanzania Cigarette, Tanzania Breweries Limited and Co-operative Bank of Kenya of 2.0%, 2.0% and 1.5% respectively. The performance was however supported by gains recorded by large cap stocks such as Bank of Baroda Uganda, Safaricom and KCB Group of 13.3%, 3.1% and 3.0% respectively;
During the week, British American Tobacco Kenya Plc released their H1’2025 financial results, recording a 39.7% increase in Profits after Tax (PAT) to Kshs 3.0 bn, from Kshs 2.1 bn recorded in H1’2024. The increase in PAT was mainly attributed to the 5.5% decrease in the cost of sales to Kshs 7.5 bn in H1’2025, from Kshs 7.9 bn recorded in H1’2024, as well as the 113.5% decrease in the finance cost to a finance income of Kshs 0.1 bn, from a finance cost of Kshs 0.7 bn in H1’2024, which outweighed the 5.9% decrease in the gross sales to Kshs 18.5 bn from Kshs 19.6 bn;
During the week, Shri Krishana Overseas Limited (SKL), a packaging solutions provider, was officially listed on the Nairobi Securities Exchange (NSE) on 24th July 2025. This marked the first listing on the NSE in five years, with the last listing being Homeboyz Entertainment Plc in 2020. Earlier, on 16th July 2025, the Satrix MSCI World Feeder ETF was also listed on the NSE, bringing the total number of Exchange Traded Funds (ETFs) on the exchange to two. The Satrix ETF joins the previously listed Absa New Gold ETF, expanding the range of ETF investment options available to local investors. Also, during the week Linzi Finco LLP, a subsidiary of Liaison Group listed the Linzi 003 Infrastructure Asset-Backed Security (IABS) on the NSE, valued at Kshs. 44.9 bn;
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Real Estate:
During the week, Hass Consult, a Kenyan consulting and Real Estate development firm, released its Property Index Q2’2025 Report , focusing on the residential Real Estate sector's performance in the Nairobi Metropolitan Area (NMA).
During the week, Hass Consult also released Land Price Index Q2’2025 Report which highlighted the performance of the Real Estate land sector in the Nairobi Metropolitan Area (NMA).
During the week, the Kenya Airports Authority (KAA) unveiled a detailed plan to revamp Wilson Airport’s infrastructure, with a strong focus on runway rehabilitation and public safety. This announcement comes as the authority raises concern over illegal developments near the airport's flight paths, which pose significant safety risks. KAA has initiated a Strategic Environmental and Social Assessment (SESA) and scheduled public forums to collect stakeholder views, underscoring its commitment to sustainable, inclusive airport modernization.
During the week, Linzi Finco LLP, a subsidiary of Liaison Group, successfully listed the Linzi 003 Infrastructure Asset-Backed Security on the Nairobi Securities Exchange (NSE), raising Kshs 44.9 bn. This landmark transaction, lauded by President William Ruto, marks one of the largest securitization deals in East Africa and a bold stride toward leveraging capital markets for infrastructure funding. Positioned as a market-first solution, the listing showcases the growing appetite for asset-backed securities and is expected to catalyze future structured finance innovations in Kenya’s capital markets.
On the Unquoted Securities Platform, Acorn D-REIT and I-REIT traded at Kshs 26.7 and Kshs 22.9 per unit, respectively, as per the last updated data on 25th July 2025. The performance represented a 33.4% and 14.5% 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 25th July 2025, representing a 45.0% loss from the Kshs 20.0 inception price. The volume traded to date came in at 1.2 mn shares for the I-REIT, with a turnover of Kshs 1.5 mn since inception in November 2015;
Click the link below to read the Cytonn Weekly report: Cytonn Weekly #30/2025
