The Nairobi Securities Exchange recorded a 386% increase in profit after tax to KSh736.9 million for the six months ended June 30, 2026, compared with KSh151.6 million in the first half of 2025.
According to the exchange’s H1 2026 financial results, total income rose 136.6% to KSh1.21 billion, while profit before tax increased 396% to KSh1.01 billion. The performance was primarily supported by higher equity trading revenue, alongside growth in the fixed-income and market-data businesses.
Equity Trading Revenue Drives NSE Profit Higher
Equity transaction levy income increased 475.6% to KSh770.5 million from KSh133.9 million a year earlier. The levy is charged on transactions conducted through the exchange, meaning the increase reflects a sharp rise in the value of shares traded during the period.
Equity market turnover consequently climbed 476% to KSh322 billion from KSh56 billion in H1 2025. However, the improvement was not limited to the period’s largest one-off transaction. Equity turnover still increased 111% after excluding that trade, according to an analysis of the NSE results, indicating that activity improved across the wider market.
Other revenue lines also expanded. Fixed-income transaction levy income rose 22.4% to KSh187.3 million as bond turnover increased to KSh1.70 trillion from KSh1.39 trillion. Data income grew 29.2% to KSh75.2 million, supported by demand for the exchange’s market-information products.
Derivatives turnover increased to KSh637 million from KSh34 million, although the segment remains considerably smaller than the equity and bond markets. The growth was supported by increased retail participation, market-maker activity and smaller contract sizes in the single-stock futures market.
The revenue increase had an outsized effect on profitability because operating expenses remained broadly unchanged. Total operating costs stood at KSh309.7 million, compared with KSh309.9 million in H1 2025. This allowed most of the additional trading and data income to flow through to the bottom line.
Kenya’s Stock Market Rally Extends Beyond H1
The NSE H1 2026 results come amid a wider recovery in Kenyan equities. As Blockmara previously reported on Kenya’s stock-market rally, listed companies added KSh1.05 trillion in market value during the first seven months of 2026.
Market capitalisation increased 35.57% from KSh2.945 trillion at the end of 2025 to KSh3.992 trillion on July 31 before crossing KSh4 trillion in August. Banking shares have accounted for a significant portion of activity, generating 55.38% of weekly equity turnover in mid-August.
Local investors have also played a larger role in sustaining trading activity. They accounted for 76.2% of turnover during the week ended August 14, absorbing KSh1.17 billion in net foreign selling. Strong company earnings, including the regional profit growth examined in Blockmara’s Equity Bank stock outlook, have helped maintain interest in some of the exchange’s most heavily traded counters.
What Investors Should Watch in H2 2026
NSE’s total assets increased 57.5% to KSh3.62 billion, while shareholder equity rose 39.5% to KSh2.87 billion. Earnings per share climbed to KSh2.82 from KSh0.58, and annualised return on equity improved to 51.5% from 14.8%.
Despite the sharp increase in NSE profit, the board did not declare an interim dividend. Investors will therefore be watching whether the stronger earnings translate into a higher full-year distribution.
The main question for the second half is whether trading activity can remain elevated without relying on unusually large transactions. The exchange is also implementing a new integrated market infrastructure system and pursuing additional equity and debt listings. Sustained turnover, new listings and continued demand for market data will determine how much of the H1 earnings growth carries into the full year.
