Kenya Weekly Market Wrap: T-Bills, Dividends and PMI

A quick recap on the week that was in Kenya’s financial markets.

From a heavily oversubscribed Treasury Bills auction to dividend payouts from two of the country’s largest banks, this Kenya weekly market wrap pulls together the eight stories every retail investor and business owner should have on their radar. We close with a look at the launch of the 78th Abojani Personal Finance Masterclass.

Treasury Bills Attract Ksh 100 Billion in Bids as Investor Demand Remains Strong

In this week’s Treasury Bills auction, the government raised Ksh 54 billion against the Ksh 24 billion that was on offer. Interest rates continued to trend upwards, with the average weighted rates coming in as follows:

• 91-Day paper: 8.5588%
• 182-Day paper: 8.5252%
• 364-Day paper: 8.7629%

Interest on Treasury Bills is subject to a final 15% withholding tax for resident individuals, deducted at source by CBK. On that basis, the 364-day paper at 8.7629% translates to a net yield of approximately 7.45%.

Private Sector Activity Contracts Further in May

Kenya’s private sector remained under pressure in May 2026, with the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) falling to 46.6, down from 49.4 in April and the fastest decline in private sector operating conditions since July 2024.

The PMI is compiled by S&P Global from responses by purchasing managers at around 400 Kenyan private sector companies, with data for the May survey collected between 12 and 27 May 2026. A reading above 50 signals expansion and a reading below 50 signals contraction.

Businesses reported weaker demand, rising operating costs, and softer output levels. Inflationary pressures also accelerated, leading some firms to reduce hiring and purchasing activity. Despite the slowdown, businesses remain cautiously optimistic about future growth prospects.

Dividend Season Continues for NSE Investors

It was a rewarding week for income-focused investors on the Nairobi Securities Exchange (NSE) as both Stanbic Bank Kenya and Co-operative Bank distributed their FY2025 final dividends.

• Stanbic Bank paid Ksh 18.55 per share
• Co-operative Bank paid Ksh 1.50 per share

The payments marked another reminder of the banking sector’s importance as a dividend-paying segment of the NSE.

Absa Retains Leadership in Bancassurance

We also released our Q1 2026 Bancassurance Leaderboard. Absa Bancassurance Intermediary maintained its position as the most profitable bancassurance business with pre-tax profits of Ksh 604 million.

Co-op Bancassurance followed closely at Ksh 560 million, while the insurance subsidiaries of I&M, KCB, and Equity contributed Ksh 280 million, Ksh 209 million, and Ksh 160 million respectively.

NCBA and Strathmore Graduate SME Entrepreneurs

NCBA, in partnership with Strathmore Business School, graduated 17 entrepreneurs under the 2026 Enterprise Development Programme (EDP). The initiative continues to support SMEs through business training, mentorship, strategic partnerships, and sustainable growth opportunities.

Family Bank Earns Positive Credit Rating

Family Bank received national scale ratings of BBB+(KE) for the long term and A2(KE) for the short term from Global Credit Rating (GCR), both carrying a stable outlook.

The rating agency cited the bank’s strong capital position, funding profile, and liquidity levels as key strengths supporting future growth. GCR is the leading provider of credit ratings in Africa, and the (KE) suffix denotes a national scale rating, which benchmarks the issuer against other Kenyan entities rather than on the global scale.

Britam Unveils ASCEND 2030 Strategy

Britam released its 2025 Sustainability Report, highlighting significant impact across climate resilience, healthcare, and environmental conservation. Among the key achievements:

• Support for more than 402,000 farmers and pastoralists
• Planting of 86,000 trees
• Creation of 1,358 green jobs
• Continued investment in maternal healthcare and renewable energy

The company also unveiled its ASCEND 2030 strategy and launched Tawi, a digital platform designed to improve accountability in tree-planting initiatives.

NSSF Clarifies Court Ruling

The National Social Security Fund (NSSF) clarified that a recent court ruling does not affect current contribution requirements. Employers and employees are expected to continue remitting contributions as required under the NSSF Act, with no changes to deductions, benefits, or compliance obligations.

Abojani’s June Masterclass Begins Monday 8^th June 2026

The 78th Abojani Personal Finance Masterclass officially begins today, Monday 8th June 2026.

If improving your financial literacy, investment decision-making, and wealth-building skills is on your agenda this year, this remains one of the most practical places to start.