In our Cytonn Monthly- July 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;
a) Fixed Income
During the month of July 2025, T-bills were oversubscribed, with the overall average subscription rate
coming in at 117.1%, albeit lower than the subscription rate of 179.5% recorded in June 2025. The overall
average subscription rates for the 91-day and 364-day papers decreased to 156.5% and 141.1%
respectively, from 234.6% and 283.6% respectively recorded in June 2025, while the average subscription
rate for the 182-day paper increased to 77.4% from the 53.3% recorded in June 2025. 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 7.9 bps, 7.3 bps, and 12.1 bps to 8.1%, 8.4% and 9.7%
respectively, from an average of 8.2%, 8.5% and 9.8% recorded the previous month. For the month of
July, the government accepted a total of Kshs 94.1 bn of the Kshs 112.4 bn worth of bids received in T-
Bills, translating to an acceptance rate of 83.7%, compared to an acceptance rate of 72.8% in the month
of June;
During the week, T-bills were undersubscribed for the first time in three weeks, with the overall
subscription rate coming in at 67.1%, lower than the subscription rate of 166.7% recorded the previous
week. Investors’ preference for the shorter 91-day paper waned, with the paper receiving bids worth
Kshs 2.0 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 49.3%, significantly lower
than the subscription rate of 405.8%, recorded the previous week. The subscription rate for the 182-day
paper decreased to 21.4% from the 32.0% recorded the previous week, while that of the 364-day paper
decreased to 119.8%, from the 205.9% recorded the previous week. The government accepted a total of
Kshs 16.0 bn worth of bids out of Kshs 16.1 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 91-day, 182-
day and 364-day papers decreasing by 0.6 bps, 0.9 bps and 0.2 bps to 8.11%, 8.41% and 9.72%, from the
8.12%, 8.42% and 9.72% recorded the previous week;
Additionally, July 2025 bonds were oversubscribed, with the overall average subscription rate coming in
at 153.8%, lower than the average subscription rate of 202.7% recorded in June 2025. The reopened
bonds FXD1/2018/020 and FXD1/2018/025 with tenors to maturity of 12.8 years and 18.0 years
respectively and fixed coupon rates of 13.2% and 13.4% respectively, received bids worth Kshs 76.9 bn
against the offered Kshs 50.0 bn translating to an oversubscription rate of 153.8%. The government
accepted bids worth Kshs 66.7 bn, translating to an acceptance rate of 87.4%, with the average accepted
yields coming at 13.9% and 14.3% for the FXD1/2018/020 and FXD1/2018/025 respectively;
During the month, the Central Bank of Kenya (CBK) initiated procurement for a new digital retail bond
system. According to the tender document, the system will offer a fully integrated front-end and back-
end platform, allowing individual investors to register, purchase, manage, rediscount, and receive
interest payments on government securities primarily through mobile phones and the web. The CBK
explicitly outlines the goal to “provide all services related to retail bonds”, including direct settlement via
mobile money and banking systems, automation of interest/coupon payments, and a real-time, investor-
facing dashboard for balances, transaction history, and reporting;
During the week, the global ratings agency, Fitch Ratings affirmed Kenya’s credit rating at B-, maintaining
the Stable outlook in a review dated 25th July 2025. The affirmation follows a prior downgrade in January
2025 from a credit rating of B in August 2024, with the outlook then revised to stable from negative. The
affirmation reflects the agency’s confidence in Kenya’s economic resilience, continued access to
concessional funding, and ongoing efforts to manage its fiscal position despite persistent debt
vulnerabilities and external financing pressures;
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During the week, Kenya National Bureau of Statistics (KNBS) released the year-on-year inflation noting
that inflation in July 2025 rose by 0.3% points to 4.1%, up from 3.8% recorded in June 2025. The headline
inflation was primarily driven by price increases in the following categories: Food & Non-Alcoholic
Beverages at 6.8%, Transport at 4.1%, and Housing, Water, Electricity, Gas and Other Fuels at 1.3%. The
month-on-month inflation rate stood at 0.1% in July 2025;
The Monetary Policy Committee (MPC) is expected to meet on Tuesday, 12 th August 2025 to review the
outcome of its previous stance. We are projecting that the MPC will maintain the Central Bank Rate (CBR)
at 9.75% to allow more time for recent policy measures to take effect.
b) Equities
During the month of July 2025, the equities market was on an upward trajectory, with NSE 25 gaining the
most by 5.0%, while NSE 20, NASI and NSE 10 gained by 4.9%, 4.4% and 4.1% respectively. The equities
market positive performance was driven by gains recorded by large-cap stocks such as EABL, NCBA Bank
and BAT Kenya of 14.2%, 11.3%, and 10.9% respectively. The monthly performance was however
weighed down by losses recorded by large cap stocks such as Co-operative Bank of 5.0%;
During the week, the equities market registered a mixed performance, with NASI losing by 1.0%, while
NSE 10, NSE 25 and NSE 20 all gained by 0.1%, taking the YTD performance to gains of 26.8%, 23.3%,
18.8% and 18.3% for NASI, NSE 20, NSE 25 and NSE 10 respectively. The week on week equities market
performance was driven by losses recorded by large-cap stocks such as Safaricom, NCBA Bank and DTB-K
Bank of 3.3%, 3.1%, and 0.6% respectively. The performance was however supported by gains recorded
by large-cap stocks such as EABL, Standard Chartered Bank and BAT-Kenya of 7.1%, 1.9% and 1.5%
respectively;
Additionally, in the regional equities market, the East African Exchanges 20 (EAE 20) share index gained
by 0.2%, attributable to gains recorded by large cap stocks such as CRDB Bank, Quality Chemicals Industry
Limited and Tanga Cement Company Limited of 13.1%, 7.0% and 4.9% respectively. However, the
performance was weighed down by the losses recorded by large cap stocks such as Safaricom, Tanzania
Breweries Limited and MTN Uganda of 2.3%, 1.2% and 1.0% respectively;
During the week, East African Breweries Plc (EABL) released their FY’2025 financial results for the year
ending 30 th June 2025, recording a 12.2% increase in the Profits After Tax (PAT) to Kshs 12.2 bn in
FY’2025, from Kshs 10.9 bn in FY’2024;
During the week, the Nairobi Securities Exchange (NSE) restructured its market segments, consolidating
them into two; the Main Investment Market Segment (MIMS) for established issuers and the SME Market
Segment for smaller firms, aiming to simplify listings, improve investor clarity, and align with global
standards. MIMS now includes 57 equity and 4 bond issuers, while the SME segment remains small with 9
equity and 1 bond issuer;
During the week, Kalahari Cement Ltd announced plans to acquire a 29.2% stake in East African Portland
Cement Plc (EAPC) for Kshs 27.30 per share, positioning the deal as a strategic, long-term investment to
support EAPC’s recovery, pending regulatory approvals;
a) Real Estate
During the week, the Kenya National Bureau of Statistics (KNBS) released the Leading Economic
Indicators (LEI) May 2025 Reports, which highlighted the performance of major economic indicators.
Additionally, during the week, on the Real Estate Investments Trusts Sector, Acorn I-REIT, D-REIT, Laptrust
I-REIT and ILAM Fahari I-REIT released their H1’2025 results that showed performance of these REITs;
On the Unquoted Securities Platform, Acorn D-REIT and I-REIT traded at Kshs 26.7 and Kshs 22.9 per unit,
respectively, as per the last updated data on 1 st August 2025. The performance represented a 33.4% and
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14.5% 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 1 st August 2025, representing a 45.0% loss from the Kshs
20.0 inception price. The volume traded to date came in at 1.2 mn shares for the I-REIT, with a turnover
of Kshs 1.5 mn since inception in November 2015.
Click the link below to read the Cytonn Weekly report https://cytonnreport.com/research/cytonn-
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