The Nairobi Securities Exchange (NSE) witnessed a remarkable surge in bond market activity in 2024, marking a historic milestone in Kenya’s financial markets.

The bond turnover skyrocketed by 140% to a record-breaking Sh1.5 trillion, a massive leap from Sh643 billion in 2023.

This remarkable growth was fuelled by increased investor interest in government securities, particularly a high-yield 8.5% revalued infrastructure bond issued in February 2024.

Key Drivers of the Record-breaking Growth

1. High-Yield Infrastructure Bond Attraction
   The standout performer in 2024 was the 8.5% infrastructure bond, which offered an exceptional 18.46% returnWith Kenya’s high-interest-rate environment, driven by the Central Bank of Kenya’s efforts to curb inflation and stabilise the exchange rate, investors flocked to this bond. The high yield made it an attractive investment compared to other financial instruments.
2. Investor Rush Amid Falling Interest Rates
   As interest rates began declining from July 2024Investors rushed to secure this premium bond before new issuances reflected lower yields. This heightened demand pushed the bond’s price to Sh119.32 per Sh100 unit by early 2025, further fuelling trading activity in the secondary market.
3. Market Reforms & Improved Efficiency
   The NSE’s strategic reforms played a crucial role in attracting both domestic and international investors. These reforms enhanced market efficiency, making bond trading more attractive and seamless. Increased transparency and accessibility also contributed to the historic surge in bond turnover.

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Financial Impact on the NSE

The record-breaking performance of the bond market significantly strengthened the NSE’s financial results:

• Bond Levy Revenue Surge: The NSE earned Sh170 million in bond levy revenue in 2024, more than doubling the Sh64.4 million collected in 2023. The bond levy, set at 0.1% of the securities transaction value, remains a vital revenue stream for the bourse.
• Profit Growth: Net profit soared sixfold to Sh116.3 million in 2024, compared to Sh18.4 million in the previous year.
• Total Income Increase: NSE’s total income rose by 25% to Sh828.4 million, while expenses grew at a moderate 12.9% to Sh673.2 million, highlighting strong cost management and operational efficiency.

Shareholder Benefits and Future Prospects

In response to the stellar financial performance, the NSE board announced an increase in dividend payout:

• Dividend Payout Growth: The board doubled the dividend to Sh0.32 per share from Sh0.16 per share previously.
• Payment Date: The dividend is scheduled for payment by July 31, 2025, for shareholders on record as of May 21, 2025.

Looking ahead, the NSE is positioning itself for sustained growth by:

1. Attracting more domestic and diaspora investors to further deepen market participation.
2. Enhancing trading infrastructure to support increased activity and efficiency.
3. Expanding product offerings to diversify investment opportunities.

Navigating the Nairobi Stock Exchange: Key Resources for Investors

For investors looking to stay updated on market trends, the Nairobi Securities Exchange website serves as a crucial resource, offering real-time insights into the Nairobi Stock Exchange today.

With a comprehensive list of Nairobi Stock Exchange listed companies, traders and investors can track stock movements and make informed decisions.

For those interested in real-time trading, the Nairobi Stock Exchange live feature provides up-to-the-minute updates on stock prices and market performance.

Additionally, accessing the Nairobi Stock Exchange Price List today pdf allows investors to analyse daily stock movements and trends.

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By keeping an eye on the Nairobi Securities Exchange share price, market participants can evaluate the Nairobi Stock Exchange performance and adjust their investment strategies accordingly.

For enhanced accessibility, the Nairobi Stock Exchange app offers mobile-friendly trading, enabling investors to monitor the market anytime, anywhere.

Looking Ahead

The Sh1.5 trillion bond market turnover in 2024 marked a defining moment for the NSE, driven by strong investor demand, high-yield securities, and strategic market reforms.

As the exchange continues to innovate and expand its offerings, Kenya’s capital market is on track for even greater milestones in the years ahead.

Investors and stakeholders can look forward to a more dynamic and robust financial ecosystem, cementing the NSE’s position as a leading securities exchange in Africa.