June 2026 market overview. Kenyan inflation eased from May, domestic equities advanced strongly and fixed-income activity increased, while global and regional markets produced mixed results.
Month’s highlights
- Annual inflation decreased to 6.41% from 6.68% in May, although it remained above the 3.82% recorded in June 2025.
- The Monetary Policy Committee maintained the Central Bank Rate at 8.75%.
- The CBK planned four July bond auctions targeting KShs 80 billion, including a partial switch of a bond maturing in November 2026.
- Average money-market fund yields moved above 13%, increasing their appeal to short-term investors.
- Family Bank and the TRIFIC Green USD I-REIT joined the NSE, marking two significant additions to Kenya’s capital markets.
Economic indicators
The Kenyan Shilling appreciated against the US Dollar, Sterling Pound and Euro, closing at KShs 129.50, KShs 171.33 and KShs 147.51 respectively. Usable foreign exchange reserves declined marginally to USD 13.17 billion, equivalent to 5.6 months of import cover.
Fixed income
KESONIA increased slightly to 8.75%, average interbank volume fell to KShs 10.98 billion and commercial-bank excess reserves rose to KShs 16.70 billion. T-bills recorded 178.09% overall subscription. T-bond turnover reached KShs 263.33 billion across 4,955 deals, while Kenya’s Eurobond yields increased by an average of 20 basis points.
Equities
Market capitalisation increased by 10.27% to KShs 3.76 trillion. NASI, NSE 20, NSE 25 and NSE 10 gained 8.97%, 6.90%, 9.72% and 11.83% respectively, while the Banking Sector Index rose 9.26%.
Global, regional and alternative markets
The S&P 500 declined 1.06%, while the STOXX Europe 600 and Shanghai Composite gained 2.51% and 0.63%. South Africa and Nigeria declined, while Tanzania and Uganda advanced. Oil prices fell by more than 20% as diplomacy progressed and the Strait of Hormuz reopened.
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