Top 10 Nairobi Securities Exchange (NSE) Stocks to Buy in 2026

Last updated: May 17, 2026 | Reading time: ~9 minutes

Kenya's stock market has entered 2026 with genuine momentum. The NSE 20 Share Index surged 56.13% in 2025 — one of its strongest years in more than a decade — and carried that energy into the new year, with the NSE All Share Index (NASI) hitting record highs above 202 points by February 2026 before settling into a steady YTD gain of approximately 10.75% as of mid-May. Total market capitalisation at the NSE stood at KSh 3.358 trillion as of March 2026.

The macro conditions are supportive: the Central Bank of Kenya held the benchmark rate at 9.0% after a sustained easing cycle, the shilling has stabilised, and corporate earnings across banking and telecoms have surprised to the upside. The Nairobi Securities Exchange also launched the Ziidi Trader — a platform embedded in the M-Pesa app allowing any Kenyan to buy and sell shares with a single share minimum — significantly boosting retail participation.

This article covers the 10 stocks best positioned for 2026 across growth, income, and value dimensions. Track live prices for all of these on Mansa Markets Kenya.

## 1. Safaricom Plc (NSE: SCOM)

Sector: Telecommunications | Share Price: ~KSh 29.70–31.05 | 52-Week Range: KSh 17.55–33.95 | Dividend Yield: ~3.55%

Safaricom is Kenya's largest company by market capitalisation — at over KSh 1.34 trillion, it accounts for a dominant share of the NSE — and the most traded stock on the exchange by volume. There is no serious NSE portfolio that does not include a Safaricom position.

The investment case in 2026 is built on transformation, not just size. Safaricom's half-year profit for FY2026 jumped 52.1% to a record KSh 42.8 billion, with total group revenue crossing the KSh 200 billion mark for the first time in a half-year period. M-PESA is evolving from a payments tool into a full financial services platform, while data revenue is emerging as the company's primary growth driver as 5G adoption accelerates.

The Ethiopia subsidiary — Safaricom's most significant strategic bet — is still in its cash-burning early phase, which has weighed on sentiment. But with EPS growing at +48.37% year on year, the underlying Kenya business is performing exceptionally. Faida Investment Bank gives Safaricom a Buy rating, and the stock's weight on the NASI means index movements are essentially a Safaricom vote.

Why buy in 2026: Record earnings, M-PESA platform expansion, data becoming the primary revenue driver, and the Ziidi Trader integration making Safaricom the first stock millions of new NSE retail investors will buy.

## 2. Equity Group Holdings Plc (NSE: EQTY)

Sector: Banking | Dividend Yield: ~5.2%

Equity Group is East Africa's most ambitious bank — operating across Kenya, Uganda, Tanzania, Rwanda, DRC, South Sudan, and Ethiopia, with a pan-African expansion strategy that has consistently outperformed expectations. It is one of the top five companies on the NSE by market capitalisation and among the most actively traded banking stocks.

Kenya's banking sector is benefiting from SME lending recovery, digital banking adoption, and improving corporate earnings following the CBN's easing cycle. Equity's regional footprint — particularly its DRC operations, which have become a meaningful contributor — gives it diversification that pure Kenyan banks lack.

Faida Investment Bank holds Equity on its Buy list alongside Absa, KCB, NCBA, and Co-operative Bank. The market trades at a 31% discount to its 15-year historical P/E average at a forward P/E of approximately 7.8x — signalling that even after the 2025 rally, Kenyan banks remain undervalued by historical standards.

Why buy in 2026: Pan-African banking footprint at Kenya valuations, SME lending recovery, and consistent dividend history.

## 3. KCB Group Plc (NSE: KCB)

Sector: Banking | Share Price: ~KSh 28.50 | Dividend Yield: ~7.0% | EPS Growth (YoY): +21%

KCB is East Africa's largest bank by total assets and one of Kenya's most recognisable financial institutions, operating since 1896. It provides retail, corporate, and trade finance services across Kenya and multiple East African markets, with a growing mobile banking franchise.

The 7.0% dividend yield is among the highest available from a tier-1 Kenyan bank, making KCB a dual candidate for income and growth investors. EPS grew 21% year on year — strong but more modest than Safaricom or EABL, reflecting KCB's larger base and the more measured pace of a mature lender. At KSh 28.50, the entry point is accessible for retail investors.

The bank has been a consistent performer in the NSE Banking Index rally and remains on the recommended Buy list at Faida Investment Bank.

Why buy in 2026: Highest dividend yield among tier-1 banks, +21% EPS growth, accessible entry price, and East African regional scale.

## 4. East African Breweries Limited (NSE: EABL)

Sector: Consumer Goods (Beverages) | Share Price: ~KSh 165 | Dividend Yield: ~5.8% | EPS Growth (YoY): +45%

EABL is the oldest dividend-paying story on the NSE — a 25+ year consecutive dividend track record — and one of the few Kenyan stocks that pays dividends twice yearly (interim in November, final in May). It is majority-owned by Diageo, the global spirits and beverages group, which provides institutional governance and international brand access.

The H1 FY2026 results were impressive: net earnings grew 37% to KSh 11.2 billion, driven by strong revenue growth, operational efficiencies, and lower finance costs. The stock surged 5.4% in a single session on the results release. EPS growth of +45% year on year places EABL among the fastest-growing large-cap earners on the exchange.

The 5.8% dividend yield, paid semi-annually, is consistent and well-covered. For income investors who want reliability, EABL's 25-year track record is the NSE's gold standard.

Why buy in 2026: 25-year dividend track record, +45% EPS growth, twice-yearly dividend payments, Diageo backing, and strong H1 FY2026 earnings performance.

## 5. Standard Chartered Bank Kenya (NSE: SCBK)

Sector: Banking | Dividend Yield: ~13.34%–15.1%

Standard Chartered Kenya leads the NSE on dividend yield — at approximately 13–15%, it is the highest yield from any blue-chip stock on the exchange and would be remarkable even by global income investing standards. It has operated in Kenya since 1911, providing corporate, retail, and wealth management services with consistent profitability.

At this yield level, StanChart Kenya is not just an income stock — it is an income event. Dividend yields above 10% in a stable blue-chip typically signal either exceptional payout generosity or a share price that has not kept pace with earnings. In StanChart Kenya's case, the yield reflects a combination of both — the bank's share price is lower than its earnings trajectory might justify, creating a value entry point.

Why buy in 2026: Highest dividend yield on the NSE from a blue-chip institution, 115 years of Kenyan operations, and a share price that has not fully re-rated despite strong earnings.

## 6. Co-operative Bank of Kenya (NSE: COOP)

Sector: Banking | Dividend Yield: ~10.4% | Share Price: ~KSh 14–16 range

Co-operative Bank is deeply embedded in Kenya's cooperative sector — the backbone of agricultural and rural economic activity — which gives it a deposit base and lending network that purely commercial banks cannot easily replicate. It is one of Kenya's largest banks by assets and consistently among the top trading stocks by volume.

The 10.4% dividend yield sits comfortably in the top tier of NSE income stocks. At a share price in the KSh 14–16 range, it is one of the most accessible blue-chip entry points on the exchange. The Banking Index rally that began in late 2024 has included Co-op Bank among its significant contributors, with Absa, Diamond Trust Bank, and NCBA all delivering strong advances alongside it.

Why buy in 2026: Double-digit dividend yield, cooperative sector moat, accessible entry price for retail investors, and strong NSE Banking Index momentum.

## 7. Kenya Pipeline Company (NSE: KPC)

Sector: Energy / Infrastructure | IPO Price: KSh 9.00 | Opening Price: KSh 9.30

Kenya Pipeline Company listed on the NSE on March 10, 2026 — Kenya's largest IPO since Safaricom's listing 18 years ago. The state privatisation raised KSh 112.374 billion after being oversubscribed at 105.7%, attracting more than 70,000 Kenyan retail investors and 12.49 billion shares applied against an offer of 11.81 billion.

KPC operates Kenya's petroleum pipeline infrastructure — a natural monopoly asset that underpins fuel distribution across the country. As a regulated infrastructure business with government backing, it offers the kind of defensive earnings profile that institutional investors value for long-term holdings.

Opening at KSh 9.30 — an instant 3.3% premium over the KSh 9.00 IPO price — KPC has secured a position among the NSE's top ten largest companies by market capitalisation. IPO proceeds are earmarked for Kenya's National Infrastructure Fund, and the company is expected to begin dividend payments once it has established its listed earnings history.

Why buy in 2026: Natural monopoly infrastructure, government backing, massive oversubscription demand signal, and a brand-new listing that brings institutional attention to an asset that has always been public but never publicly investable.

## 8. Absa Bank Kenya Plc (NSE: ABSA)

Sector: Banking

Absa Kenya is the Kenyan subsidiary of Absa Group, the South African-headquartered pan-African bank. It provides personal, business, and corporate banking, and has invested heavily in digital transformation to expand its retail customer base.

Faida Investment Bank holds Absa on its recommended Buy list alongside Equity, KCB, NCBA, and Co-op Bank. The banking sector's momentum in 2026 has been broad-based — thirteen counters posted double-digit gains in January 2026 alone, with Absa among the standout performers. The bank's backing from Absa Group gives it capital access and international governance credibility that smaller Kenyan banks lack.

Why buy in 2026: Absa Group backing, strong 2026 banking sector momentum, digital transformation investment, and inclusion in tier-1 bank analyst Buy lists.

## 9. British American Tobacco Kenya (NSE: BAT)

Sector: Consumer Goods (Tobacco) | Dividend Yield: ~12.0%

BAT Kenya is one of NSE's most reliable income stocks, consistently delivering a dividend yield in the 12% range backed by the stable cash flows of a dominant consumer goods franchise. It is majority-owned by British American Tobacco Plc, which provides international governance and access to global product innovation.

Tobacco stocks globally face long-term secular decline in volumes as smoking rates fall. BAT Kenya manages this by innovating in product offerings and distribution, while its entrenched market position supports pricing power. The 12% yield compensates for the structural risk — this is a high-yield, moderate-growth proposition for income-focused investors.

Why buy in 2026: 12% dividend yield from a globally-backed blue-chip, stable cash flows, and consistent income track record across multiple market cycles.

## 10. NCBA Group Plc (NSE: NCBA)

Sector: Banking | Dividend Yield: ~8%+

NCBA is Kenya's most digitally positioned bank, operating M-Shwari (in partnership with Safaricom) and Fuliza — the mobile credit products that have made it the largest digital lending platform in Kenya by number of users. This digital moat is a structural advantage that traditional banks are spending heavily to replicate.

The bank serves Kenya's growing middle class with a focus on retail banking, credit services, and digital financial products. Its partnership with Safaricom through M-Shwari gives it distribution reach that no other Kenyan bank can match independently. Faida Investment Bank holds NCBA on its Buy list, citing resilient margins and strong digital lending volumes.

Why buy in 2026: M-Shwari and Fuliza digital lending moat, Safaricom partnership, growing middle class tailwind, and consistent dividend yield above 8%.

## The NSE in 2026: Key Context for Foreign Investors

The Nairobi Securities Exchange has several structural features that distinguish it from other African exchanges:

Ziidi Trader: The M-Pesa-embedded trading platform launched in 2025 has significantly boosted retail participation. Daily trading deals have risen meaningfully since the rollout, improving liquidity across mid-cap counters.

Dangote Refinery IPO: The NSE is one of five African exchanges confirmed for the pan-African Dangote Refinery listing. When it lands, it will be the largest cross-border IPO in African history and will dramatically raise the exchange's international profile. Kenyan investors will be able to subscribe through NSE-licensed brokers.

Valuation: The market trades at a 31% discount to its 15-year historical P/E average at a market P/E of approximately 7.8x. Even after the 2025 rally, NSE stocks remain cheap by historical standards.

Tax efficiency: Dividends are completely tax-free for individual investors in Kenya — making dividend stocks among the most tax-efficient income instruments available.

Track live NSE prices, dividends, and market data for all Nairobi Securities Exchange listed companies at mansamarkets.com/kenya. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.

Mansa Markets is a pan-African capital markets intelligence platform covering 20 African exchanges.