In our Cytonn Monthly- August 2025 Report this week, we analyzed the performance of Kenya’s Equities,
Fixed Income and the Real Estate markets for the month and week ended. Below are the highlights;
Executive Summary:
Fixed Income: During the month of August 2025, T-bills were undersubscribed, with the overall average
subscription rate coming in at 93.7%, albeit lower than the subscription rate of 117.1% recorded in July
2025. The overall average subscription rates for the 91-day, 182-day and 364-day papers decreased to
116.6%, 72.7%, 105.5% from 156.5%, 77.4% and 141.1% recorded in July 2025 respectively. The average
yields on the government papers were on a downward trajectory during the month, with the average 91-
day, 182-day, and 364-day papers yields decreasing by 8.3 bps, 24.2 bps, and 7.4 bps to 8.1%, 8.2% and
9.6% respectively, from an average of 8.1%, 8.4% and 9.7% recorded the previous month. For the month
of August, the government accepted a total of Kshs 86.7 bn of the Kshs 89.9 bn worth of bids received in
T-Bills, translating to an acceptance rate of 96.4%, compared to an acceptance rate of 83.7% in the month
of July;
During the week, T-bills were oversubscribed for the second time in two weeks, with the overall
subscription rate coming in at 133.5%, higher than the subscription rate of 113.5% recorded the previous
week. Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth
Kshs 20.0 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 499.2%, significantly
higher than the subscription rate of 194.3%, recorded the previous week. The subscription rates for the
182-day paper decreased to 18.0% from the 120.8% recorded the previous week while the 364-day paper
decreased to 102.5% from the 73.9% recorded the previous week. The government accepted a total of
Kshs 31.9 bn worth of bids out of Kshs 32.0 bn bids received, translating to an acceptance rate of 99.6%.
The yields on the government papers were on a downward trajectory with the yields on the 182-day
paper decreasing the most by 2.1 bps to 8.05% from the 8.07% recorded the previous week. The yields on
the 91-day paper and 364-day paper decreased by 0.01 bps and 0.4 bps to 7.99% and 9.56% from the
8.01% and 9.57% respectively recorded the previous week;
Additionally, August 2025 bonds were oversubscribed, with the overall average subscription rate coming
in at 387.1%, higher than the average subscription rate of 153.8% recorded in July 2025. The reopened
bonds IFB1/2018/015 and IFB1/2022/019 with tenors to maturity of 7.6 years and 15.6 years respectively
and fixed coupon rates of 12.5% and 13.0% respectively, received bids worth Kshs 323.4 bn against the
offered Kshs 90.0 bn translating to an oversubscription rate of 359.4%. The government accepted bids
worth Kshs 95.1 bn, translating to an acceptance rate of 32.4%, with the average accepted yields coming
at 13.0% and 14.0% for the IFB1/2018/015 and IFB1/2022/019 respectively. Also, there was a tap sale of
IFB1/2018/015 and IFB1/2022/019 with tenors to maturity of 7.6 years and 15.6 years respectively and a
fixed coupon rate of 12.5% and 13.0% respectively, receiving bids worth Kshs 130.3 bn and Kshs 77.1 bn
against the offered Kshs 50.0 bn translating to an oversubscription of 414.9%. The government accepted
bids worth Kshs 128.0 and Kshs 51.8 bn for IFB1/2018/015 and IFB1/2022/019 respectively. For the
month of August, the government accepted a total of Kshs 274.8 bn of the Kshs 530.9 bn worth of bids
received in T-Bonds, translating to an acceptance rate of 57.5% compared to an acceptance rate of 87.4%
in the month of July;
In the primary bond market, the government is looking to raise Kshs 40.0 bn through the reopened
bonds; FXD1/2018/020 and FXD1/2022/025 and Kshs 20.0 bn through the reopened SDB1/2011/030 with
fixed coupon rates of 13.2%, 14.2% and 12.0% respectively and tenors to maturity of 12.5 years, 22.2
years and 15.5 years respectively. The period of sale for the three bonds opened on Tuesday, 26th August
2025 and will close on 17th September 2025 for FXD1/2018/020 and FXD1/2022/025, while for
SDB1/2011/030, it will close on 3rd September 2025. Our bidding ranges for FXD1/2018/020,
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FXD1/2022/025 and SDB1/2011/030 are 13.25%-13.55%, 13.75%-14.50% and 13.15%-13.65%
respectively.
Equities: During the month of August 2025, the equities market was on an upward trajectory, with NSE 20
gaining the most by 11.2%, while NSE 10, NASI and NSE 25 gained by 8.3%, 7.7% and 7.5% respectively.
The equities market positive performance was driven by gains recorded by large-cap stocks such as KCB,
DTB-K and Equity of 14.5%, 12.9%, and 10.9% respectively. The monthly performance was however
weighed down by losses recorded by large cap stocks such as NCBA Bank of 3.0%.
During the week, the equities market was on an upward trajectory, with NSE 20 gaining the most by 3.2%
while NASI, NSE 25 and NSE 10 gained by 1.5%,1.4% and 1.4% respectively, taking the YTD performance
to gains of 38.2%, 37.7%, 28.8% and 28.5% for NSE 20, NASI, NSE 10 and NSE 25 respectively. The week
on week equities market performance was driven by gains recorded by large-cap stocks such as NCBA
Bank, Coop Bank and DTB-K Bank of 3.2%, 2.6%, and 2.3% respectively. The performance was however
weighed down by losses recorded by large-cap stocks such as BAT and Stanbic Bank of 3.1% and 0.7%
respectively;
Additionally, in the regional equities market, the East African Exchanges 20 (EAE 20) share index gained
by 0.8% to 99.7 from 99.4 recorded the previous week, attributable to gains recorded by large cap stocks
such as Bank of Baroda Uganda, Quality Chemicals Industry Limited, and MTN Uganda of 5.4%, 4.9% and
4.2% respectively. However, the performance was weighed down by the losses recorded by large cap
stocks such as CRDB Bank, Tanzania Breweries Limited and Tanzania Cigarette Corporation of 4.0%, 1.4%
and 1.4% respectively;
During the week, NCBA group released their H1’2025 financial results highlighting that their core earnings
per share increased by 12.6% to Kshs 6.7, from Kshs 6.0 in H1’2024, mainly driven by the 12.7% increase
in total operating income to Kshs 35.3 bn, from Kshs 31.4 bn in H1’2024, which outpaced the 13.5%
increase in total operating expenses to Kshs 21.8 bn, from Kshs 19.2 bn in H1’2024;
During the week, HF Group released their H1’2025 financial results highlighting the 134.5% increase in
Profit After Tax to Kshs 0.6 bn from Kshs 0.3 bn in H1’2024, supported by a 53.3% growth in net interest
income to Kshs 2.0 bn from Kshs 1.3 bn in H1’2024 and a 17.9% increase in non-interest income to Kshs
0.8 bn from Kshs 0.7 bn in H1’2024
During the week, Britam Holdings released their H1’ 2025 results. Britam’s Profit After Tax (PAT)
decreased by 20.7% to Kshs 1.7 bn, from Kshs 2.2 bn recorded in H1’2024.The performance was mainly
driven by the 39.4% decrease in net insurance income to Kshs 1.3 bn from Kshs 2.1 bn recorded in
H1’2024 coupled with the 29.7% increase in net insurance and finance expenses to Kshs 16.0 bn from the
Kshs 12.3 bn recorded in H1’2024;
During the week, CIC Group released their H1’2025 results. CIC’s Profit After Tax decreased by 10.1% to Kshs
0.6 bn in H1’ 2025, from Kshs 0.7 bn recorded in H1’2024. The performance was mainly driven by a significant
87.7% decrease in net insurance service revenue to Kshs 0.1 bn in H1’2025, from Kshs 1.0 bn in H1’2024,
attributable to the 23.4% increase in insurance service expenses to Kshs 12.8 bn in H1’2025, from Kshs 10.4 bn
in H1’2024. The performance was, however, supported by a 35.7% increase in net investment income to Kshs
2.7 bn in H1’2025 from Kshs 1.8 bn in H1’2024;
During the week, Jubilee Holdings Limited released their H1’2025 results. Jubilee’s Profit After Tax (PAT)
increased by 21.7% to Kshs 3.1 bn, from Kshs 2.5 bn recorded in H1’2025. The performance was mainly
driven by a 32.6% increase in Insurance Services Revenues to Kshs 16.7 bn, from Kshs 12.6 bn in H1’2024,
but was however weighed down by the 36.6% increase in Insurance Services Expenses to Kshs 15.4 bn in
H1’2025, from Kshs 11.3 bn in H1’2024;
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During the week, Kenya Re corporation released their H1’2025 results, recording an 49.5% increase in
Profit After Tax to Kshs 1.6 bn, from the Kshs 1.1 bn recorded in H1’2024. The performance was mainly
driven by a 18.2% decrease in Insurance service expense to Kshs 5.4 bn from Kshs 6.6 bn in H1’2024
which outpaced the 14.8% decrease in Insurance revenue to Kshs 6.3 bn from Kshs 7.4 bn in H1’2024
Real Estate: During the week, the Kenya National Bureau of Statistics (KNBS) released the Leading
Economic Indicators (LEI) June 2025 Reports, which highlighted the performance of major economic
indicators.
During the week, Parliament approved the Affordable Housing Regulations, 2025, paving the way for
Kenyans to access loans of up to Kshs 4.0 mn from the Affordable Housing Fund for the development of
rural housing units. Anchored in the Affordable Housing Act, 2024, the regulations seek to expand the
government’s housing agenda beyond major cities by providing affordable credit solutions for households
that have traditionally been excluded from the mortgage market.
On the Unquoted Securities Platform, Acorn D-REIT and I-REIT traded at Kshs 27.4 and Kshs 23.2 per unit,
respectively, as per the last updated data on 15 th August 2025. The performance represented a 37.0% and
16.0% gain for the D-REIT and I-REIT, respectively, from the Kshs 20.0 inception price. Additionally, ILAM
Fahari I-REIT traded at Kshs 11.0 per share as of 15 th August 2025, representing a 45.0% loss from the Kshs
20.0 inception price.
Click the link below to read the Cytonn Weekly report https://cytonnreport.com/research/cytonn-
monthly--6
