Where Kenyan Capital Glides...

I am Brian from The Kenyan Wall Street…

In today's newsletter edition, Kenya’s net outflows to offshore havens has risen significantly despite a notable spike in investments by foreign firms…

Also, KQ’s half-year losses have seen its stock price plummet…

Where Kenyan Capital Glides…

Kenya is exporting record amounts of capital even as foreign firms deepen their local footprint.

By Brian Nzomo & Chelsy Maina

Kenya is watching unprecedented sums of money flow into offshore havens, cementing its status as a net capital exporter. The imbalance between what leaves and what comes in reflects growing caution among investors even as global financial centers snap up Kenyan wealth. Read the article here >>>>>

This shift could strain domestic liquidity if left unchecked, highlighting a paradox at the heart of the country’s investment story. Yet the outflows haven’t dimmed optimism entirely, with many foreign players still choosing to bet on Kenya. Those firms are embedding themselves firmly into the local economy, hiring more Kenyans while trimming reliance on expatriates.

Women are taking up a larger share of jobs, and new greenfield projects suggest long-term confidence in Kenya’s prospects. Beyond payrolls, these investors are bringing technology, skills, and sustainability standards that strengthen domestic capabilities. Read it here >>>>>

Capital Markets 

KQ’s Fragile Stocks

By Harry Njuguna

The fall of Kenya Airways shares on Wednesday felt less like a market blip than the echo of a long unraveling. Once regarded as the emblem of East Africa’s aviation ambitions, the airline has now posted a KSh 12.15 billion loss for the first half of the year, a disappointing return to the red territory.

Its stocks, which had only returned to trading in January after a five-year suspension, plunged nearly 20 percent to close at KSh 4.00, briefly scraping KSh 1.56, a level unseen since the pandemic days of 2020.

Behind the numbers lies a fleet in disarray: Dreamliners grounded for lack of parts, routes pared back, and passengers slipping away. The company’s chief executive promises new capital, new planes, and the eventual return of suspended aircraft, but the markets are seemingly weary of promises. Read full article here >>>>>

NSE Half-Year Profit Surges 177% on Bond Market Gains

By Harry Njuguna

The Nairobi Securities Exchange (NSE) has found itself on firmer ground. Bond market volumes surged past the trillion mark, equity activity ticked higher, and cost discipline sharpened margins. The result: profits more than doubled, underscoring the Exchange’s growing role in Kenya’s financial landscape.

Financial Snapshot :

🟢 Profit after tax jumped 177% to KSh 151.6 million, from KSh 54.7 million in HY2024.

🟢 Total income rose 19.1% to KSh 511.6 million, with bond levy income up 78% to KSh 153.0 million.

🟢 Equity transaction levy climbed 18% to KSh 133.9 million.

🔴 Data income fell 12.9% to KSh 58.2 million; interest income eased 8.5% to KSh 65.6 million.

🟢 Total expenses contracted 8.7% to KSh 309.9 million, lifting operating profit to KSh 201.7 million.

Read full financial analysis here »»»»»

NSE Gainers & Losers 

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DIPLOMACY : Turning Embassies into Marketplaces 

By Fred Obura

At a gathering in Nairobi dressed up as a forum, Kenya’s Foreign Ministry quietly signed an agreement that could turn embassies into something closer to trading floors. The pact with Real Sources Africa installs a suite of digital tools into diplomatic missions, platforms that promise to verify partners, track policy, and transform polite introductions into bankable deals. It is the kind of marriage between diplomacy and commerce that suggests foreign policy is less about flags these days and more about market access. In the background looms the AfCFTA, a continental experiment in dismantling barriers, with Kenya once again casting itself as the eager first mover. Read more here »»»»»

INSIGHT : Bolt Business Witnesses +46% Growth in Only 8 Months in Kenya

By Andrew Barden

Corporate ride-hailing in Kenya has begun to acquire the air of inevitability, a quiet shift that has drawn more than two thousand firms into the orbit of a single platform. Bolt, once just another player in the crowded ride-hailing bazaar, now wears the confidence of a company whose growth is measured not only in percentages but in the faith of the suits who book its rides.

The story, as ever, is not only about convenience but about paperwork avoided, reimbursements dissolved, and the kind of efficiency that companies like to boast about at board meetings. Somewhere in the fine print, safety features, dashcams, and electric bikes are rolled out to reflect innovation. A new corporate ritual has taken hold, quietly reshaping the ways business moves through the city. Read more here >>>>>

Also Read 

Stories you missed 

♦️ Banking. The Central Bank of Kenya has unveiled a revised Risk-Based Credit Pricing Model (RBCPM) that will anchor bank loan rates to the Kenya Shilling Overnight Interbank Average (KESONIA) beginning September.

♦️ Mobility. Kenya’s motor vehicle market started the year on a strong note, with registrations peaking at 22,632 units in January before easing to 20,132 in May.

♦️Capital Markets. The Capital Markets Authority (CMA) has approved the proposed sale of Holcim Limited’s 29.2% stake in East African Portland Cement (EAPC) Plc to Kalahari Cement Limited.

♦️ Companies. Kenya Airways swung to a KSh 12.15 billion half-year net loss for the period ended June 30, 2025.

♦️ Justice. The High Court has handed a partial victory to more than 130 former National Bank of Kenya employees who have spent over a decade in legal battles to secure what they say are their rightful pension benefits.

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