As the year 2024 draws to a close, the Nairobi Securities Exchange (NSE) has witnessed remarkable growth, with several stocks showing extraordinary gains. From cement manufacturers to banking giants, the gains across various sectors highlight the resilience of the Kenyan economy and investor confidence in the country’s market despite global challenges.
In this article, we will delve into the biggest gainers on the NSE in 2024, analyzing the factors driving their success and what investors can learn from these high-performing stocks. We will also examine the broader performance of the NSE and its performance in Kenyan Shillings (KES) and US Dollars (USD) over the year.
Full List of Biggest Gainers on the Nairobi Securities Exchange (NSE) in 2024
The Nairobi Securities Exchange has experienced robust activity, with key players from diverse sectors making impressive gains. Let’s take a closer look at the companies that have recorded the highest growth, with a particular focus on their percentage increases in stock price.
1. Portland Cement: 291%
Portland Cement, a key player in the Kenyan cement industry, has emerged as the biggest gainer on the NSE for 2024, with an astounding 291% increase in stock value. This growth can be attributed to several factors, including an uptick in construction activities across the country and a recovery in the real estate sector. Additionally, Portland Cement has made significant strides in modernizing its manufacturing processes, boosting investor confidence.
The company has also benefited from government infrastructure projects, which have increased demand for cement. Investors have responded positively to these developments, with Portland Cement’s stock soaring in value.
2. Kenya Orchards: 259%
Kenya Orchards, a major player in the agricultural sector, has seen its stock price skyrocket by 259%. This is largely due to the company’s strategic expansion into new markets, as well as an increase in demand for its products both locally and internationally. The export market, particularly in Europe and the Middle East, has been a significant driver for growth.
Kenya Orchards’ commitment to quality and sustainable farming practices has helped it establish a strong brand presence. Additionally, favorable weather conditions for agriculture in Kenya have supported the growth of the company’s product output, leading to increased sales and improved stock performance.
3. Kenya Power and Lighting Company (KPLC): 223%
Kenya Power and Lighting Company (KPLC) has been one of the standout performers on the NSE in 2024, with an impressive 223% gain in its stock price. The company, which is responsible for the distribution of electricity across Kenya, has benefitted from improvements in infrastructure and an increase in electricity consumption due to rising industrial activities and urbanization.
KPLC has also been involved in the rollout of renewable energy projects, which have positioned it as a forward-thinking company in the power sector. With the Kenyan government pushing for greater investments in clean energy, KPLC is poised for continued growth, which has greatly attracted investors.
4. I&M Group: 106%
I&M Group, one of Kenya’s largest financial institutions, has seen a significant 106% rise in its stock value in 2024. The bank’s consistent financial performance and the expansion of its operations regionally have played a pivotal role in this growth. Additionally, I&M’s strategic focus on digital banking and mobile money services has captured the growing demand for fintech solutions.
I&M’s solid customer base and innovative products, along with its resilience during global financial uncertainties, have made it an attractive option for investors.
5. KCB Group: 82%
Kenya Commercial Bank (KCB) has recorded an 82% growth in its stock price, continuing to solidify its position as one of the leading commercial banks in East Africa. The growth of KCB can be attributed to its expanding loan book, strong performance in the retail banking segment, and its investment in technology to offer more accessible and customer-friendly banking solutions.
Additionally, KCB’s regional presence across East Africa has allowed it to capture a broader market and diversify its revenue streams, contributing to the rise in its stock value.
6. Liberty Kenya: 81%
Liberty Kenya, a leading insurance provider, has seen a notable 81% increase in its stock price. This growth comes on the back of a solid performance in the insurance sector, which has shown resilience despite the global economic slowdown. Liberty’s innovative product offerings and its emphasis on digital solutions have resonated well with Kenyan consumers.
Furthermore, Liberty Kenya has undertaken strategic partnerships and acquisitions, expanding its footprint in the market and boosting investor confidence in the company.
7. KenGen: 80%
Kenya Electricity Generating Company (KenGen) has also performed admirably in 2024, with its stock price rising by 80%. The company has been a key player in Kenya’s energy sector, with several renewable energy projects, including geothermal, wind, and solar power. As the Kenyan government continues to push for clean and sustainable energy sources, KenGen is expected to benefit in the long term.
KenGen’s involvement in international energy markets and its robust growth in renewable energy generation have been pivotal in driving its stock value higher.
8. Standard Chartered Bank (StanChart): 78%
Standard Chartered Bank (StanChart) has posted a healthy 78% growth in its stock price. The bank has capitalized on Kenya’s growing economy and a rise in banking services usage. Its strategy of focusing on premium banking services, mobile banking, and wealth management has appealed to both individual and corporate clients.
Additionally, the bank has leveraged its global presence to offer innovative solutions to its clients, making it one of the more attractive banking stocks in the market.
9. East African Breweries Limited (EABL): 55%
East African Breweries Limited (EABL), a leading beverage manufacturer in East Africa, has recorded a 55% increase in its stock price in 2024. EABL’s success has been driven by the continued growth of the alcohol and beverage sector in Kenya and across the region. With new product innovations, strong distribution networks, and a resilient brand presence, EABL has cemented its position as a market leader.
Additionally, the company’s commitment to sustainability initiatives and responsible consumption has resonated well with both consumers and investors alike.
10. Bamburi Cement: 53%
Bamburi Cement, one of the top cement manufacturers in Kenya, has experienced a 53% increase in its stock value. Bamburi’s growth can be attributed to the ongoing construction boom in Kenya and East Africa. The company has made strides in improving production efficiency and sustainability, aligning with Kenya’s goals of infrastructure development.
Bamburi Cement’s strategic investments in renewable energy and modernized production processes have boosted its competitiveness in the market, thus leading to increased investor confidence.
NSE Market Overview: 33% Growth in KES and 50% in USD
Overall, the Nairobi Securities Exchange (NSE) has posted remarkable growth in 2024, with the market gaining 33% in Kenyan Shillings (KES) and 50% in US Dollars (USD). These impressive figures are indicative of a strong recovery following global economic disruptions and provide a positive outlook for the future of the Kenyan stock market.
The growth in KES highlights the robustness of the Kenyan economy despite external challenges, such as fluctuating commodity prices and political uncertainties in various regions. The significant increase in USD terms is a reflection of the attractiveness of the NSE for foreign investors, as Kenya continues to emerge as a key player in the East African economic landscape.
The Impact of Exchange Rate Fluctuations
The USD/KES exchange rate has seen a year-to-date decrease of 17%, indicating a slight depreciation of the Kenyan Shilling against the US Dollar. This exchange rate movement has had mixed effects on the market, particularly for companies that rely on imports or foreign-denominated debt. However, many local companies listed on the NSE, such as Portland Cement and Bamburi, have managed to weather the currency fluctuations due to their strong local market presence and increased demand for their products.
Key Takeaways for Investors
The remarkable performance of stocks like Portland Cement, Kenya Orchards, and Kenya Power in 2024 offers valuable insights for investors. These gains reflect the importance of identifying sectors that are poised for growth, including construction, energy, agriculture, and financial services. Investors should continue to monitor these sectors as they present substantial opportunities for future growth.
The NSE’s overall performance in 2024 serves as a testament to the resilience of the Kenyan economy and the increasing investor confidence in the market. As always, it’s essential to diversify one’s portfolio, carefully consider risk factors, and stay updated on market trends to maximize returns.