Equity Bank stock touched a fresh all-time high at the Nairobi Securities Exchange (NSE) on Monday, underscoring renewed investor appetite for Kenya banking stocks as earnings momentum and corporate deal activity lift the sector.
The rally comes amid easing inflationary pressures in Kenya, improving the operating backdrop for lenders even as households continue to feel cost pressures.
Equity Bank Stock Extends Rally on Strong Earnings Momentum
Equity Group Holdings (NSE: EQTY) climbed to an intraday record of KES 73 during morning trade after opening at KES 67.50, before easing to KES 69.25 at press time. The stock began the year at KES 66.50 and has risen sharply from early December lows of KES 59, marking a gain of about 23.7% in under two months.
The price action follows strong third-quarter 2025 results that reinforced Equity’s earnings trajectory. The group reported a 32% year-on-year increase in profit after tax to KES 54.1 billion, driven by growth in net interest income, improved efficiency, and solid regional performance
Within Kenya, Equity Bank posted an even stronger rebound, with profit after tax up 51% to KES 31.1 billion, supported by lower interest expenses and expanding loan activity. Net interest income in the domestic unit rose 27% to KES 53.6 billion, while total equity expanded 36% to KES 171.4 billion, highlighting balance-sheet strength
Co-op Bank, NCBA Join the Banking Rally
The broader banking sector has moved in tandem. Co-operative Bank shares reached an all-time high of KES 29.25 last week, extending a steady climb that has made it one of the strongest large-cap performers at the NSE this year.
NCBA Group also surged after South Africa’s Nedbank announced a proposed tender offer to acquire a controlling 66% stake in the lender. The announcement pushed NCBA shares up nearly 10% in a single session, as investors priced in takeover value and improved access to regional capital.
The banking rally is unfolding as Kenya’s inflation eased to a six-month low in January 2026, hovering near the lower bound of the Central Bank of Kenya’s target range. While essential costs remain elevated, the moderation in headline inflation has reduced pressure on interest rates and supported credit growth expectations.
For investors, the combination of strong bank earnings, corporate activity, and a stabilising macro environment is reinforcing the case for Kenyan financial stocks, at least for now, as the sector continues to outperform the broader market.
