NSE Corporate Bond Trading Remains Muted

Corporate bond trading at the Nairobi Securities Exchange (NSE) remained subdued in 2025 despite fresh issuances by major corporates, highlighting persistent liquidity challenges in Kenya’s corporate debt market.

According to data from the Capital Markets Authority (CMA), corporate bond turnover rose to about Sh840 million in 2025 from Sh40,000 the previous year. However, the activity remained significantly below historical levels, with the market having recorded turnover of Sh12.47 billion at its peak in 2010.

The muted performance of corporate bonds stood in sharp contrast to government securities, as Treasury bond turnover increased to Sh2.7 trillion in 2025, up from Sh1.54 trillion in 2024. The disparity reflects a continued concentration of trading activity in the sovereign debt market.

During the year, East African Breweries Plc (EABL) raised Sh16.76 billion at an interest rate of 11.8 per cent under its approved Sh20 billion medium-term notes programme, while Safaricom Plc raised Sh20 billion under its approved Sh40 billion green bond programme. Despite the scale of these transactions, the late-year issuances did not lead to sustained secondary market trading.

Market analysts link the thin trading to the structure of the investor base, which is dominated by institutional and high-net-worth investors. These investors tend to hold corporate bonds to maturity, limiting the volume of securities available for secondary market trading.

CMA data shows that outstanding listed corporate bonds total Sh87.1 billion, with issuers including Family Bank, Kenya Mortgage Refinance Company, and Linzi Finco. Fund managers and nominee accounts hold Sh57.8 billion, representing 82 per cent of the outstanding corporate debt.

The data suggests that while Kenya’s corporate bond market continues to attract issuers seeking long-term financing, limited secondary market participation continues to constrain liquidity, even as issuance activity gradually recovers.