March 2026 market overview. Rising energy-market risk and the Middle East conflict weighed heavily on global and Kenyan equities, while inflation increased and fixed-income demand remained elevated.
Month’s highlights
- Annual inflation rose to 4.39% from 4.25% in February and 3.63% in March 2025.
- The NSE recorded its worst week since the COVID-19 pandemic, erasing KShs 231.17 billion in market value over five consecutive sessions.
- Disruption to key maritime routes intensified energy-supply concerns, while WTI crude moved above USD 100 per barrel.
- Euro Area inflation increased to 2.5%, and the S&P Global US Composite PMI fell to 50.3.
Economic indicators
The Shilling depreciated 0.71% against the US Dollar to KShs 129.93 but appreciated against the Sterling Pound and Euro. Usable foreign exchange reserves increased 11.86% to USD 14.02 billion, or 6.0 months of import cover.
Fixed income
KESONIA declined to 8.70%, average interbank volume increased to KShs 12.96 billion and commercial-bank excess reserves fell to KShs 9.60 billion. T-bills recorded 198.28% overall subscription. T-bond turnover declined to KShs 329.46 billion across 4,449 deals, while Kenya’s Eurobond yields increased by an average of 90 basis points.
Equities
Market capitalisation declined 5.26% to KShs 3.23 trillion. NASI, NSE 20, NSE 25 and NSE 10 fell 9.84%, 8.50%, 8.94% and 10.49% respectively, with KCB, Safaricom, ABSA and Equity among the leading large-cap decliners.
Global and regional markets
The S&P 500, STOXX Europe 600, Shanghai Composite, MSCI Emerging Markets and MSCI World indices all declined. Oil prices rose sharply amid supply concerns, while regional performance was mixed.
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