The Co-operative Bank has edged out East Africa Breweries becoming the fourth most valuable company on the Nairobi
Securities Exchange (NSE).
The lender now
ranks behind Safaricom, Equity Group Holdings and KCB Group in market
capitalisation, placing bank stocks at the top
of the exchange.
Latest NSE data
shows Co-op Bank’s market capitalisation grew to about Sh206.8 billion, driven by a sustained
rally in its share price and strong earnings growth.
The lender’s
stock has surged 47.3 per cent since
the beginning of the year, rising from Sh23.95 to trade above Sh35, making it the tenth-best performing stock on the exchange so
far this year.
On the other hand EABL’s market value has slipped to about Sh199.5 billion after its share
price declined by about 4.1 per cent year-to-date,
although the brewer remains among the exchange’s top blue-chip
firms.
Co-op bank posted
a 16.9 percent increase
in net profit to Sh29.8 billion for
the year ended December 2025, while profit before tax rose 15.8 per cent to Sh40.29 billion.
The lender has
also strengthened its continental profile with the acquisition of Jamii
Bora Bank in 2020, now operating as Kingdom Bank, Co-op Bank has expanding its
market presence.
It was recently ranked as Africa’s 24th most capitalised bank in its debut
in The Banker’s Top 1,000 World
Banks rankings.
EABL,
meanwhile, has experienced a volatile year on the stock market following the
announcement by Japan’s Asahi
Group Holdings to acquire Diageo’s 65 percent stake in the brewer
in a deal valued at about $2.3
billion (Sh297 billion).
The proposed
transaction triggered heavy investor interest, several temporary trading halts
and sharp swings in the company’s share price as investors repositioned ahead
of the expected completion of the acquisition later this year.
Despite the
recent weakness in its share price, analysts expect EABL’s full-year financial
results, due early next month, to show a strong recovery.
The brewer is
projected to benefit from improved sales across its regional markets, lower
operating costs and easing finance expenses after a challenging period marked
by high interest rates and currency pressures.
The reshuffle
comes as the NSE continues to enjoy one of its strongest rallies in recent
years.
Investor wealth
has climbed sharply, with the exchange’s total market capitalisation rising above Sh3.8 trillion, representing one of
the fastest expansions in years.
The rally has
been supported by gains in banking stocks, Safaricom, renewed foreign investor
interest, new listings and major corporate transactions.
Safaricom’s market cap now stands at Sh1.42 trillion,
accounting for 37.3 per cent of the total market cap followed by Equity at
Sh326.4 billion and KCB Group at Sh259.5 billion.
Four of the
NSE’s five key equity indices have also reached record highs this year,
highlighting renewed confidence in Kenya’s capital markets.
The benchmark
NSE All Share Index, NSE 20 Share Index and NSE 25 Share Index have all posted
strong gains in 2026, while banking stocks have emerged among the biggest
beneficiaries of improving corporate earnings and expectations of lower
borrowing costs.
NSE chief executive
Frank Mwiti said last week the exchange is now targeting a Sh5 trillion market
capitalisation by the end of the year, buoyed by the sustained market rally, a
robust pipeline of new listings and increasing participation by both local and
foreign investors.