Penny Stocks Shine in NSE Rally

Hello there 👋🏿

It's Brian from The Kenyan Wall Street 

In today's newsletter, the Kenyan stock market has ramped up investors' wealth by KSh 137 billion. Also, Stanbic Bank shareholders have a reason to smile as the lender records high profits and golden dividends.

These and more business stories today…

CAPITAL MARKETS

Penny Stocks Shine in NSE Rally

Penny stocks led Kenya’s market rally, with TransCentury surging 232.5%, Home Afrika gaining 142.9%, and East African Cables rising 18.5%.

The investment sector recorded the highest returns, with a 51.3% median gain, while agriculture and manufacturing stocks lagged due to weak financials and supply chain disruptions. Overall, the Nairobi Securities Exchange (NSE) added KSh 137 billion in investor wealth over two months, pushing the market cap up 7.1% to KSh 2.1 trillion. Here are the details…

The NSE All Share Index (NASI) climbed 7% to 132.13 points, while the NSE 20 Share Index jumped 14.4% to 2300.17. Foreign investors remained net sellers, offloading KSh 2.2 billion worth of shares year-to-date despite the bullish trend. The rally was fueled by speculative trading ahead of the earnings season, as investors sought short-term dividend opportunities.

A recent interest rate cut from 13% to 11.25% and a stable shilling have further boosted investor confidence. NSE CEO Frank Mwiti is targeting 9 million retail investors, both locally and abroad, to deepen market participation.

Today's Poll

Yesterday's Poll Results

Do you think a 3% Digital Asset Tax is justified or is it too high?

🟨⬜️⬜️⬜️⬜️⬜️ Justified (17.65%)

🟩🟩🟩🟩🟩🟩 Pointless (82.35%)

INTERNET

Africa-Focused BCS Completes Deepest Inland Submarine Cable

BCS Group has completed the Lake Tanganyika Submarine Cable Project, the world’s deepest inland undersea fiber optic cable, spanning 400 km and reaching depths of up to 1,300 meters.

Announced at MWC Barcelona 2025, the project aims to enhance connectivity in the Democratic Republic of Congo (DRC) and nearby regions, benefiting over 10 million people. It builds on BCS Group’s past fiber optic deployments in Lake Albert and the Congo River, addressing Africa’s connectivity challenges. The cable links Northern and Southeastern DRC, with potential expansions to Tanzania and Burundi.

BCS Group, founded in 2009, operates an 80,000 km fiber network across Eastern, Central, and Southern Africa. CEO Yonas Maru, with a background in private equity and consulting, leads the company’s mission to improve Africa’s digital infrastructure. Read more details…

FINANCE  

Stanbic’s Record Payout: Profits Soar

Stanbic Holdings reported a 12.8% rise in net profit to KSh 13.7 billion for 2024, fueled by lower credit impairments and cost-cutting measures.

The NSE-listed lender declared a record final dividend of KSh 18.90, bringing total payouts for the year to KSh 20.74, a 35% jump from 2023. Revenue fell 3.8% as both net interest and non-interest income declined, though operating costs edged 1.7% lower. Loan loss provisions were halved to KSh 3.1 billion, while gross non-performing loans fell 14.4%, keeping Stanbic’s NPL ratio well below the industry average. The South Sudan unit struggled, with profits plunging 63% to KSh 176 million, as conflict in Sudan weighed on the region’s economy. Full details here…

ECONOMY  

Private Sector Grows, Confidence Still Low

Kenya’s private sector improved slightly in February, with the Stanbic PMI rising to 50.6 from 50.5 in January, marking five consecutive months of expansion.

Business activity grew at its fastest pace since November 2024, driven by improved economic conditions, softer price pressures, and increased demand. Employment levels remained largely unchanged, though agriculture and construction saw notable output growth due to expanded product offerings and better marketing.

However, wholesale, retail, and services sectors experienced declines in activity and hiring due to financial constraints and competition. Input purchases fell for the first time since July 2024, and pricing pressures eased despite some firms raising wages to counter the cost of living. Here is the full story…

INTERVIEWS  

How Healthtech Could revolutionize Medical Services Amid Trump's aid Cuts

The Covid-19 pandemic and the recent freeze on US aid have exposed the vulnerability of Africa’s healthcare systems but also created the momentum for locally made healthcare solutions, an early stage impact investor in the sector told Fred Obura in this interview.

⏱️ On your watchlist

Following an audit exposing irregularities in the Sh104.8 billion Social Health Authority (SHA) system, Auditor-General Nancy Gathungu has maintained that her role is limited to auditing and that Parliament must take action.

More Stories :

• Regulation. The Competition Authority of Kenya (CAK) resolved most of the 82 cases of abuse of buyer power it flagged in the year ending June 2024, helping suppliers recover KSh 89.52 million in delayed payments.

• Mining. Kenya’s risks losing much needed revenue and community development due to illegal mining with Taita Taveta County alone having 158 companies operating without licenses, a review of mining records submitted to the Auditor-General’s office reveals.

• Startups. Badili, a Kenya-based smartphone refurbishment startup, has secured a US$400,000 debt facility from French development finance institution Proparco, marking a significant step in its expansion efforts across Africa.

• Tech. Meta platforms — Facebook and WhatsApp — remain the most popular social media apps in Kenya but usage slipped in Q2 2024/2025 to 57.1% and 54.4% from 63.9% and 55.8% in the preceding quarter respectively.

• Geopolitics. US President Donald Trump has defended his administration’s decision to freeze international aid, joking that ‘nobody has ever heard of’ Lesotho yet the southern African country US$8mn in aid.

Have a lovely evening!