Nairobi Securities Exchange Launches Banking Sector Index

The Nairobi Securities Exchange Plc (NSE) today announced the launch of its Banking Sector Index, a market capitalization-weighted and float-adjusted benchmark designed to provide investors with a transparent and reliable measure of the performance of the banking sector.

The new index will track the performance of freely tradable shares of all listed banking institutions and will comprise the following counters:

Absa Bank Kenya Plc

BK Group Plc

Diamond Trust Bank Kenya Ltd

Equity Group Holdings Plc

HF Group Plc I&M Group Plc

KCB Group Plc

NCBA Group Plc

Stanbic Holdings Plc

Standard Chartered Bank Kenya Ltd

The Co-operative Bank of Kenya Ltd

The Banking Sector Index is expected to deliver wide-ranging benefits to the market by serving as a transparent benchmark to guide portfolio allocation and investment decision-making, enhancing visibility for listed banks while supporting sector-based research and analysis. It will equally provide a foundation for product innovation such as Exchange Traded Funds (ETFs) and other index-linked products, thereby deepening market activity and broadening investor participation.

Commenting on the launch, NSE Chief Executive, Mr. Frank Mwiti, stated, “This milestone underscores NSE’s commitment to innovation and the continuous development of products that meet evolving investor needs while strengthening Kenya’s capital markets”.

“The launch of the Banking Sector Index is fully aligned with our new strategy of driving product diversification and deepening market activity. Beyond providing investors with a reliable performance tracker, the Index will highlight the banking sector as a key driver of economic growth and create a strong foundation for future product innovation. This is a critical step in positioning the NSE as a modern, globally competitive marketplace.” he added.

Between January and September 2025, the Banking Sector has demonstrated strong performance driven by strong earnings, balance sheet expansion and ongoing innovations in financial services. This robust performance highlights the sector’s critical role in fuelling activity within the capital markets and the wider economy. The new Banking Sector Index will take effect from October 1, 2025.