Cheap vs Expensive Shares in Kenya: What Investors Should Know Cheap vs Expensive Shares in Kenya: What Investors Should Know Introduction Many beginner investors in Kenya make one critical mistake when entering the stock market—they judge shares purely based on price. There is a widespread belief that cheap shares are good deals while expensive shares are risky or “too late” to invest in. This thinking often leads to poor investment decisions and missed opportunities in the Nairobi Securities Exchange (NSE). The reality is simple: the biggest mistake NSE beginners make is confusing share price with value. Understanding this difference is what separates smart investors from those who struggle to make consistent returns. What Are Shares? Shares represent ownership in a company. When you buy shares, you become a part-owner of that business. This means you can benefit in two main ways: Capital gains (when the share price increases) Dividends (profits s...
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NSE Secondary Bond Market Hits Sh2.7 Trillion in 2025 | Expert Analysis
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NSE Secondary Bond Market Hits Sh2.7 Trillion in 2025 | Expert Analysis
NSE Secondary Bond Market Hits Sh2.7 Trillion in 2025 — Expert Analysis
By Postine Ngeli | January 19, 2026
Note: Figures refer to calendar year 2025 only and do not include trading in 2026. Source
Year-on-Year Market Turnover
Year
Secondary Bond Turnover
2024
Sh1.5 trillion
2025
Sh2.7 trillion
Secondary bond market turnover comparison: 2024 vs 2025 (hover bars for details)
Top Premium Bonds in 2025
Bond Tenor
Premium Above Par
Notes
8.5-year IFB
21–23%
High-coupon legacy bond; actively traded
6.5-year IFB
14–15%
Moderate premium, still active
Key Market Drivers
1. Falling Yields & Price Premiums
CBK base rate fell from 13% to 9%, lowering yields on new bonds.
Older high-coupon bonds traded at up to 23% above par.
Active trading concentrated in 8–12 year tenors.
2. Investor Participation
Investor Type
Share of Volume
Notes
Institutional
~65%
Banks, pension funds, insurance dominate trading
Retail & HNIs
~25%
CBK DhowCSD platform increased access
Foreign
~10%
Focus on high-grade government securities
3. Market Structure Implications
Liquidity concentrated in benchmark and high-coupon bonds.
Thinly traded tenors remain sensitive to rate changes.
Strategic opportunities exist for duration management and relative value trading.
FAQ — Expert Perspective
Q1: Does the Sh2.7 trillion turnover include primary issuance?
A: No, it is strictly secondary market trades.
Q2: Why did bonds trade above par?
A: Falling yields on new bonds made older high-coupon bonds more valuable.
Q3: Which investor segments drove the increase?
A: Institutions and retail investors via digital platforms like CBK DhowCSD.
Postine Ngeli — Capital markets analyst and founder of Money Market Hub Kenya. Specializes in fixed-income strategy, yield curve analysis, and Kenyan capital markets research.
Disclaimer
Informational only; not investment advice. Past performance is not indicative of future results. Read full disclaimer.
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