Thursday 12 March 2026 marked a historic day for Kenya's financial sector at the Nairobi Securities Exchange (NSE), characterized by the simultaneous release of third-quarter 2025 earnings from six major commercial banks alongside the official inauguration of the NSE Banking Sector Index. The NASI closed up 1.32% at 211.05 points, demonstrating remarkable resilience against volatility in global oil and gold markets.
Market Context: Banks Strike Back
The 12 March session revealed mixed market breadth with 23 stocks advancing, 25 declining, and 17 unchanged out of 65 listed securities. This configuration reflects ongoing sectoral rotation: while financial institutions published their Q3 2025 figures, agricultural stocks and airlines faced pressure from geopolitical tensions in the Middle East.
The USD/KES exchange rate weakened by 0.70% to 129.15, penalized by the Brent crude surge to $97.04 per barrel (+5.5% on the session) according to global energy data. This pressure on hydrocarbon imports — Kenya being a net importer — threatens to widen the trade deficit and increase pressure on the shilling, partially explaining the relative weakness in the export-oriented agricultural sector.
Key Figures:
- NASI: 211.05 points (+1.32%)
- USD/KES: 129.15 (+0.70%)
- Brent: $97.04/barrel (+5.5%)
- Banks reporting Q3 2025: 6 institutions
- Market breadth: 23 up / 25 down / 17 unchanged
The Banking Avalanche and New Sector Index
March 12, 2026 will be remembered as the day the NSE structured its sectoral offering with the official launch of the Banking Sector Index, according to the Exchange's same-day announcement. This analytical tool arrives as KCB Group (EQTY), Co-operative Bank of Kenya, ABSA Bank Kenya, NCBA Group, I&M Group, and Diamond Trust Bank (DTB) simultaneously unveiled their unaudited results for the quarter ended 30 September 2025.