The Nairobi Securities Exchange (NSE) recorded a sharp rise in profitability in the first half of 2026, with net profit increasing by 386 percent to Sh736.9 million on increased activity across the equities and fixed-income markets.
The exchange’s profit after tax rose from Sh151.6 million recorded in the six months ended June 30, 2025, reflecting stronger trading activity and increased participation by both local and foreign investors.
The strong performance was largely driven by a surge in levy income from the equities market, which increased by 476 percent to Sh770.5 million from Sh133.9 million a year earlier.
NSE attributed the growth to improved market liquidity, heightened participation by domestic and international investors and the impact of the Safaricom block trade transaction executed during the period.
The Safaricom transaction significantly boosted trading activity at the exchange, contributing to the sharp increase in equity market-related income during the period.
Revenue from the fixed-income segment also increased, rising by 22 percent to Sh187.3 million from Sh153 million in the corresponding period last year.
The growth reflects continued activity in Kenya’s bond market as investors and institutions increased participation in fixed-income securities.
NSE also recorded stronger earnings from the sale and provision of market data. Data income increased by 29 percent to Sh75.2 million from Sh58.2 million in the first half of 2025.
The improved revenue performance strengthened the exchange’s financial position, with total investable funds increasing to Sh1.219 billion from Sh751 million a year earlier.
“The Group’s financial position strengthened considerably during the period, with total investable funds increasing to Kshs. 1.219 billion from Kshs. 751 million in H1 2025,” NSE said in a statement.
The exchange also reported a significant improvement in its profitability ratios during the period.
Annualised return on assets rose to 40.7 percent from 13.2 percent in the first half of 2025, while annualised return on equity increased to 51.5 percent from 14.8 percent.
NSE said the improvement in the ratios reflected stronger earnings capacity and more efficient utilisation of capital.
“Profitability ratios also improved markedly from H1 2025 to H1 2026, with annualised Return on Assets (ROA) rising from 13.2% to 40.7% and annualised Return on Equity (ROE) increasing from 14.8% to 51.5%, underscoring the Group’s enhanced earnings capacity and efficient utilisation of capital,” the exchange said.
Despite the significant improvement in earnings, the NSE Board of Directors did not declare an interim dividend for the six months ended June 30, 2026.
The exchange’s financial statements show that other liabilities included Sh260.9 million in dividends payable for the 2025 financial year.
The liabilities also included Sh137.9 million in tax payable and Sh67.3 million in deferred fees relating to four additional trading participants admitted as NSE members.
The strong half-year performance comes as the NSE seeks to deepen activity at the local capital market by increasing liquidity, attracting more investors and expanding the range of investment products available to Kenyans.
The exchange has in recent years pursued diversification of its product offering as it seeks to attract both retail and institutional investors and strengthen Nairobi’s position as a regional financial centre.
The sharp increase in profit in the first half of the year signals a stronger financial performance for the NSE, with higher equity trading activity, fixed-income transactions and data revenues contributing to the improved results.
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