Nairobi Securities Exchange Secondary Bond Market Hits Record KSh 2 Trillion Turnover in 2025
The Nairobi Securities Exchange (NSE) has achieved a historic milestone as its secondary bond market surpassed KSh 2 trillion in turnover as of September 24, 2025. This marks the first time the market has crossed the KSh 2 trillion mark within a single year, overtaking the previous full-year record of KSh 1.544 trillion set in 2024 by more than 30%. With three months still to go, the surge reflects growing investor confidence in Kenya’s fixed-income market.
Market data shows a sharp acceleration in activity in recent months. From July 21 to September 24, turnover jumped nearly KSh 500 billion, pushing the average monthly trading volume to roughly KSh 220 billion. Analysts now project that if current momentum continues, the NSE bond market could close the year with turnover between KSh 2.6 trillion and KSh 2.7 trillion, the strongest performance in its history. The growth trajectory is even more striking when compared to pre-2020 levels, where annual turnover remained below KSh 1 trillion.
Several factors are driving this unprecedented activity. Oversubscription of government bond auctions has been particularly notable, with August and September tap sales drawing bids 200–400% above offered amounts. For instance, the August reopening of 15- and 19-year infrastructure bonds attracted KSh 207.5 billion in bids against an offer of just KSh 50 billion. Retail investor participation has also doubled in two years, exceeding KSh 800 billion, aided by digital platforms such as the CBK’s Dhow CSD system that make investing more accessible.
High-yield bonds continue to attract strong interest, particularly infrastructure bonds issued in 2023 and 2024 offering coupon rates between 14.4% and 18.5%. Some of these instruments have traded at price premiums of up to 22%. Meanwhile, demand for short-term Treasury bills remains robust, though long-term infrastructure bonds still dominate secondary market flows. Weekly data from the Central Bank of Kenya shows periods of extreme volatility, with turnover doubling in the week ending August 21 and growing a further 36.7% by the week ending September 18, highlighting both institutional and retail engagement.
Looking ahead, Kenya’s bond market is well-positioned to sustain its record growth. The country recently received an S&P sovereign rating upgrade from B- to B, citing improved liquidity management. Government plans for bond buybacks and issuance of longer-dated instruments are expected to manage upcoming maturities totaling KSh 495 billion in 2025 and KSh 822 billion in 2026. With secondary trading volumes already rewriting records, the NSE bond market is now cementing Kenya’s status as one of Africa’s most dynamic and liquid fixed-income markets.
source: keyanwallstreet