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 Insolvency in Real Estate in Kenya .
Below are the highlights;
a) Fixed Income
During the week, T-bills were undersubscribed for the third time in three weeks, with the overall
subscription rate coming in at 96.6%, lower than the subscription rate of 97.6% recorded the previous
week. Investors’ preference for the shorter 91-day paper increased, with the paper receiving bids worth
Kshs 4.9 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 123.2%, higher than the
subscription rate of 99.7%, recorded the previous week. The subscription rates for the 364-day paper
decreased to 108.0% (Kshs. 10.8 bn against the offered Kshs 10.0 bn) from the 120.2% (Kshs. 12.0 bn
against the offered Kshs 10.0 bn) recorded the previous week, while that of the 182-day paper increased
to 74.6% (Kshs 7.5 bn against the offered Kshs 10.0 bn) from 74.1 % (7.4 bn against the offered Kshs 10.0
bn) recorded the previous week. The government accepted a total of Kshs 23.16 bn worth of bids out of
Kshs 23.18 bn bids received, translating to an acceptance rate of 99.9%. The yields on the government
papers were on a downward trajectory with the yields on the 364-day paper decreasing the most by 13.1
bps to 9.6% from the 9.7% recorded the previous week. The yields on the 91-day paper and 182-day
paper decreased by 6.9 bps and 5.4 bps to 8.0% and 8.1% respectively, from the 8.1% and 8.2%
respectively recorded the previous week.
During the week, the Central Bank of Kenya released the auction results for the re-opened treasury bonds
IFB1/2018/015 and IFB1/2022/019 with tenors to maturities of 7.6 years and 15.6 years respectively and
fixed coupon rates of 12.5% and 13.0% respectively. The bonds were oversubscribed, with the overall
subscription rate coming in at 359.4%, receiving bids worth Kshs 323.4 bn against the offered Kshs 90.0
bn. The government accepted bids worth Kshs 95.0 bn, translating to an acceptance rate of 29.4%. The
weighted average yield for the accepted bids for the IFB1/2018/015 and IFB1/2022/019 came in at 13.0%
and 14.0% respectively. Notably, the 13.0% on the IFB1/2018/015 was higher than the 12.5% recorded
the last time the bond was reopened in January 2018 while the 14.0% on the IFB1/2022/019 was higher
than the 13.0% recorded the last time the bond was reopened in February 2022. Given the bonds are tax
free, compared to 10.0% withholding tax for other long-term bonds, the effective tax yield is 14.4% and
15.6% for the IFB1/2018/015 and IFB1/2022/019 respectively. With the Inflation rate at 4.1% as of July
2025, the real returns of the IFB1/2018/015 and IFB1/2022/019 are 8.9% and 9.9%.
The Monetary Policy Committee met on August 12th, 2025, to review the outcome of its previous policy
decisions against a backdrop of elevated uncertainties to the global outlook for growth, lower sticky in
advanced economies heightened trade tensions as well as persistent geopolitical tensions. The MPC
decided to lower the CBR rate by 25.0 bps to 9.50%, from 9.75%.
Also during the week, The Energy and Petroleum Regulatory Authority (EPRA) released their monthly
statement on the maximum retail fuel prices in Kenya, effective from 15 th August 2025 to 14 th September
2025. Notably, the maximum allowed price for Super Petrol and Kerosene decreased by Kshs 1.0 each
respectively, while the price for Diesel remained unchanged. Consequently, Super Petrol and Kerosene
will now retail at Kshs 185.3 and Kshs 155.6 per litre respectively, from Kshs 186.3 and Kshs 156.6 per
litre respectively while Diesel will now retail at Kshs 171.6 per litre, representing decreases of 0.5% and
0.6% for Super Petrol and Kerosene respectively.
During the week, the National Treasury gazetted the revenue and net expenditures for the first month of
FY’2025/2026, ending 31 st July 2025, highlighting that the total revenue collected as at the end of July
2025 amounted to Kshs 178.4 bn, equivalent to 6.5% of the original estimates of Kshs 2,754.7 bn for
FY’2025/2026 and is 77.7% of the prorated estimates of Kshs 229.6 bn.
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b) Equities
During the week, the equities market was on an upward trajectory, with NSE 20 gaining the most by
3.9%, while NSE 10, NSE 25 and NASI gained by 3.2%, 2.9% and 2.8% respectively, taking the YTD
performance to gains of 32.2%, 29.7%, 24.3% and 23.9% 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
KCB, BAT and SCBK of 11.7%, 5.5% and 4.4% respectively. The performance was, however, weighed down
by losses recorded by large cap stocks such as NCBA and EABL of 2.3% and 0.5% respectively.
During the week, four of the listed banks released their H1’2025 results. KCB Group released its H1’2025
financial results, with its Core Earnings per Share (EPS) increasing by 8.0% to Kshs 19.6, from Kshs 18.2 in
H1’2024.
Co-operative bank released its H1’2025 financial results, with its Core Earnings per Share (EPS) increasing
by 8.4% to Kshs 2.4, from Kshs 2.2 in H1’2024.
Absa Bank released its H1’2025 financial results, with its Core Earnings per Share (EPS) increasing by 9.1%
to Kshs 2.0, from Kshs 2.2 in H1’2024.
Lastly, Equity group released its H1’2025 financial results, with its Core Earnings per Share (EPS)
decreasing by 16.8% to Kshs 8.8, from Kshs 7.6 in H1’2024.
c) Real Estate
During the week, the European Investment Bank (EIB) made an equity investment in local developer,
International Housing Solutions (IHS) Kenya, to help it deliver more than 3,000 affordable housing units in
prime neighborhoods such as Nairobi and Kiambu;
During the week, International hotel chain, Mariott International announced that it is set to debut its
luxury The Ritz-Carlton brand in Africa with an exclusive luxury tented safari lodge in the Maasai Mara. It
is set to officially open on August 15 th in a ceremony to be presided by Narok County Governor, Patrick
Ole Ntuntu;
During the week, the International Finance Corporation (IFC) announced that it is proposing to make an
equity investment of Kshs 1.3 bn in Safari holdings, the parent firm of ARP Africa Travel, Pollman’s Tours
and Safaris and Tanzanian tour company, Ranger Safaris;
During the week, Kenya invited international development lenders to finance a USD 2.0 bn expansion of
the Jomo Kenyatta International Airport located in Nairobi. This marks nine months after it cancelled a
deal with India’s Adani Group after its founder, Gautam Adani, was indicted in the United States of
America;
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 15 th August 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 15 th August 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;
Focus of the Week
Insolvency in Kenyan real estate arises when a developer, property company, or project vehicle can no
longer meet its financial obligations as they fall due, triggering procedures such as administration,
receivership, or liquidation under the Insolvency Act, 2015. The sector’s capital-intensive nature means
that even minor disruptions in cash flow can escalate quickly. Common triggers include excessive debt
reliance, cost overruns from inflation or mismanagement, and delayed or failed off-plan sales that
deprive projects of critical liquidity. Market oversupply can slow absorption rates, while legal disputes
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over land or planning approvals can stall construction and revenue. Broader economic pressures such as
high interest rates, currency volatility, and tightened mortgage lending further strain developers. These
dynamics have made insolvency more visible in recent years, with several notable cases in 2025 reflecting
a combination of financing challenges, operational weaknesses, and adverse market conditions.
Click the link below to read the Cytonn Weekly report: https://cytonnreport.com/research/insolvency-in-
real-estate-in-kenya-and-cytonn-weekly-33
