The Nairobi Securities Exchange posted a sharp increase in profitability for the full year ending 31 December 2025, signaling renewed momentum in Kenya capital markets.
The exchange reported profit after tax of KSh 272.3 million, representing a 134% increase compared to the previous year. The performance was supported by increased trading activity across equities, fixed income and derivatives segments.
Total income rose 31.5% to KSh 1.089 billion, driven by higher transaction levies, while total expenses grew 10.1% to KSh 741.5 million. Total assets expanded 28.4% to KSh 2.762 billion.
Trading surge lifts revenues
A surge in market activity played a central role in boosting earnings at the exchange.
Equity transaction levy income rose 37.2% to KSh 348.1 million, reflecting improved turnover in the equities market as investor participation increased.
Meanwhile, the bond market recorded stronger growth, with transaction levy income rising 75.5% to KSh 298.1 million. The increase was linked to heightened activity in government securities.
The exchange said frequent reopenings of government bonds in the primary market supported activity in the secondary market, as investors continued to favor fixed-income securities in a high-interest-rate environment.
The derivatives segment, still relatively new in Kenya, recorded significant expansion during the year.
The number of contracts traded rose sharply from 6,683 in 2024 to 53,333 in 2025, highlighting growing adoption among investors. Open interest also increased to 7,620 contracts valued at KSh 27.9 million.
The growth was supported by the introduction of new contracts linked to companies including Kenya Power and Lighting Company, KenGen, Liberty Kenya Holdings, British American Tobacco Kenya and KCB Group real estate investment trust.
The entry of a market maker also improved liquidity, making it easier for investors to trade derivatives for both hedging and speculative purposes.
Following the improved financial performance, the exchange declared a total dividend of KSh 1.00 per share.
The payout comprises an ordinary dividend of KSh 0.73 and a special dividend of KSh 0.27. Shareholders on record by 21 May 2026 will receive the payment on 31 July 2026.
The dividend signals confidence in the exchange financial position and outlook.
The performance comes amid signs of a stabilising economy, supported by easing inflation and sustained government borrowing.
Analysts say continued growth in trading activity could support further recovery in investor confidence, particularly if new listings and financial products are introduced.
The latest results point to a market regaining momentum, with equities, bonds and derivatives contributing to the overall growth of the exchange.
