What’s new:
Market intermediaries at the Nairobi Securities Exchange saw their brokerage commissions collectively grow by 58% to Sh3.75 billion for the year ended December 31, 2025 compared to Sh2.37 billion earned a year earlier.
By the numbers:
- Dry Associates led the pack with Sh454 million in 2025, more than double the Sh222 million recorded in 2024.
- Standard Investment Bank posted Sh338 million, up from Sh125 million, while Faida Investment Bank reported Sh373 million, nearly tripling from Sh123 million. AIB-Axys, EFG Hermes Kenya, and Genghis Capital also recorded strong growth.
- Even smaller firms saw outsized growth. ABC Capital’s commissions jumped to Sh37 million from Sh11 million, while Francis Drummond rose to Sh61 million from just Sh6 million a year earlier.
- Not all firms shared in the bonanza — KCB Investment Bank (-49%), Pergamon Investment Bank (-39%) and Kestrel Capital (-10%) all saw their commissions decline.
Driving the numbers:
- Stockbrokers typically earn commissions of 0.03% on bond trades, 1.5%–1.8% on equity trades, and 0.08%–0.10% of contract value on derivatives trades.
- In the bond market, turnover soared by 75.5%, closing the year at Sh2.71 trillion, up from Sh1.54 trillion in 2024. Lower interest rates on new government bond issuances in the primary market boosted trading activity in the secondary market.
- Equity market turnover increased by 37% to close the year at Sh145.4 billion, compared to Sh105.9 billion recorded over a similar period in 2024.
- The derivatives market recorded a turnover of Sh249 million representing a 47% increase compared to Sh170 million traded in 2024.
- The NSE itself also benefited from the surge in trading activity. Net profit jumped 134% to Sh272.3 million, while total income crossed the Sh1 billion mark to reach Sh1.09 billion, up from Sh828.4 million in 2024.
Market developments in the industry:
- In June 2025, stockbrokers through their lobby, the Kenya Association of Stockbrokers and Investment Banks (KASIB), unveiled a plan to call a special shareholder meeting to oust NSE CEO Frank Mwiti, accusing him of making material decisions without board knowledge and pushing for direct share sales that would allow the exchange to collect transaction charges while bypassing licensed brokers entirely.
- The push to remove the CEO, however, eased following negotiations that granted brokers greater representation at the board level, with Nancy Noreh of Sterling Capital and Tom Mulwa of Liaison Group appointed as broker representatives at the NSE board.
- There was a change in ownership in two stockbrokers last year: Kestrel Capital was sold by its Canadian owner to its management team while Old Mutual Holdings sold its stock brokerage arm to Kweli Capital for an undisclosed sum.
- Earlier this year, Safaricom launched Ziidi Trader, a mini-app on its M-Pesa App (One App) that allows its users to trade stocks on the NSE with settlement of the trades to be handled by Kestrel Capital.
What they’re saying:
- The NSE CEO, Frank Mwiti, told stakeholders during the investor briefing, that they are in consultations with other industry stakeholders through a capital markets round table with support from Treasury and State House to review levies charged to investors.
- He added further that any revenue shortfalls market intermediaries will suffer as a result of lower commission rates could be covered by an uplift in trading volumes.
