Investors at the Nairobi Securities Exchange (NSE) lost Kes.34 billion in paper wealth over the three months leading to September, as the country rebounded from the economic impact of the June Gen Z protests.
According to third-quarter statistics from the Capital Markets Authority, market capitalization at the NSE declined by 2.01 percent, dropping to Kes.1.67 trillion from Kes.1.71 trillion.
Share trading volumes also dipped slightly by 0.65 percent, reaching 1.092 billion shares, down from 1.097 billion in the second quarter of 2024.
The NSE All Share Index, which covers all securities on the exchange, also declined, falling 2.20 percent to 107.08 points from 109.49 points in the previous quarter.
While the Capital Markets Authority did not specify the reasons behind the reduced activity, the Kenya Institute for Public Policy Research and Analysis (Kippra) linked the decline to a 2.97 percent drop in the total value of traded shares. Kippra noted that political tensions from the Gen Z-led protests had increased investor uncertainties, worsening market conditions.
In the bond market, turnover fell significantly by 29.37 percent, with Kes.323.61 billion traded in the third quarter compared to Kes.458.2 billion in the second quarter.
However, some metrics defied the market’s challenges. Equity turnover rose by 48.9 percent, reaching Kes.28.39 billion from Kes.19.07 billion in Q2. Likewise, the NSE 20 Share Index climbed by 7.19 percent, reaching 1,775.67 points from 1,656.50 points.
These gains followed the stabilization of the shilling after a yearlong drop to a historic low of 160 units against the dollar, showing renewed investor confidence amid a recovering market.
