These are eight NSE stocks to watch in the second half of 2026, the names drawing the most investor attention as the market rides one of its strongest runs in years. This is not a buy list and not a recommendation. For each of these NSE stocks to watch, we lay out the honest case for and the case against, so you can do your own research rather than chase a tip. The Nairobi Securities Exchange had a powerful first half, but every one of these names carries real risk as well as opportunity.
Table of Contents
Key takeaways
- The NSE had a strong first half of 2026: the NASI index rose about 15.1% in the second quarter alone.
- These eight are NSE stocks to watch because of momentum, results or corporate news, not because we recommend buying them.
- Every name has a bull case and a bear case; a stock that has already run hard can be the riskiest to chase.
- Headwinds remain: inflation was about 6.4% in June and a fuel-price shock rippled through the economy.
- Educational only, not financial advice. Verify every current price and figure before acting.
The backdrop for H2 2026
Kenya’s stock market closed the second quarter of 2026 on a high, its strongest quarter in more than a year, with the broad NASI index up about 15.1% in the quarter and 9% in June alone. Trading volumes surged, helped by a landmark deal in which Vodacom acquired a 15% stake in Safaricom from the government. But the mood is not all bullish: inflation sat near 6.4% and a fuel-price shock added pressure. That mix of momentum and risk is the lens to view these NSE stocks to watch through.
1. Safaricom (SCOM)
For: Safaricom posted a record half-year, with FY2026 first-half profit jumping 52.1% to about KSh 42.8 billion and group revenue crossing KSh 200 billion in a half-year for the first time. Vodacom buying a 15% stake is a vote of confidence. Against: it is already the market’s giant, its Ethiopia venture still carries losses and currency risk, and after a strong run the price may already reflect much of the good news.
2. Equity Group (EQTY)
For: Equity delivered its strongest year yet and declared a record dividend, backed by the widest customer base in the region. Against: it earns heavily outside Kenya, so currency and country risk matter, and like all banks it moves with interest rates and the wider economy. Read our full Equity shares review.
3. KCB Group (KCB)
For: KCB posted one of the largest profits on the exchange, about KSh 68.4 billion for 2025, and paid a big dividend including a special. Against: its regional expansion, including the Democratic Republic of Congo, adds risk, and a special dividend is a one-off, not a promise. See our KCB review and the KCB vs Equity comparison.
4. BK Group (BKG)
For: the NSE’s one Rwandan bank grew 2025 profit to about RWF 110 billion with a strong 22.9% return on equity and lifted its dividend around 80%. Against: earnings are in Rwandan francs, so a Kenyan holder carries currency risk, and the stock trades thinly on the NSE. See our BK Group review.
5. Car & General (CGEN)
For: Car & General has been one of the market’s standout gainers, trading around KSh 262 in mid-August 2026 after a huge run, on the back of strong earnings momentum in its auto and equipment business. Against: this is exactly where caution matters. The share has already climbed a long way, it is thinly traded so the price can swing hard, and the business is cyclical. Chasing a stock after a big rally is how many investors get hurt.
6. Kenya Power (KPLC)
For: Kenya Power has been a turnaround story, with the share rising strongly in 2026 as profitability returned after tough years. Against: it carries heavy debt, its tariffs are politically sensitive and regulated, and it has a long history of disappointing shareholders. The recovery is real but the risks are structural, not gone.
7. Jubilee Holdings (JUB)
For: Jubilee is one of the region’s leading insurers, a steady, established business that has drawn buying interest in 2026. Against: insurance profits can be lumpy, the stock is less liquid than the banks or Safaricom, and growth tends to be slower and steadier rather than explosive.
8. Nairobi Securities Exchange (NSE)
For: the exchange itself is listed, and it benefits directly when trading activity booms, as it did in the first half of 2026 when turnover surged. It is a leveraged play on a rising, busier market. Against: that cuts both ways. When the market cools and volumes fall, the NSE’s revenue falls with it, so it is tied tightly to market sentiment.
How to use this watchlist
A watchlist is a starting point for research, not a shopping list. For each of these NSE stocks to watch, dig into the latest results, check the current price and valuation, and ask whether the good news is already priced in. Never buy simply because a stock has been rising. To go deeper, compare the banks in our guide to the best NSE bank stocks, see the wider best performing NSE stocks and top 10 NSE stocks, and track payouts in our NSE dividend calendar.
Keep shares as your growth layer, not your safety net. Park short-term cash somewhere stable, our money market fund calculator shows the after-tax return of a calmer money market fund, and if you reinvest dividends our compound interest calculator shows how they compound. Fit it all into a plan with our guide to building an investment portfolio. All these stocks trade on the Nairobi Securities Exchange, regulated by the Capital Markets Authority.
Frequently asked questions
Are these NSE stocks to watch a buy?
No. This is an educational watchlist of names drawing attention, with the case for and against each, not a buy list or financial advice. A stock being worth watching is not the same as being worth buying, especially after a big run. Do your own research and consider a licensed adviser before acting.
Why is Car & General on the list if it is risky?
Because it has been one of the market’s biggest movers, which makes it a stock to watch, not necessarily to buy. A share that has already surged is often the riskiest, since much of the good news may be priced in and the price can fall as fast as it rose. That is exactly why we include the case against.
Is now a good time to invest on the NSE?
The market has been strong in 2026, but strength can tempt people to buy at high prices. The better question is whether a specific stock is fairly valued and fits your goals and time horizon. Focus on your own plan rather than trying to time the market.
Disclaimer: The content on Sarafu is for educational and informational purposes only and does not constitute financial or investment advice. This is a watchlist of names drawing investor attention, not a recommendation to buy or sell any stock. Figures are approximate, were sourced at the time of writing (mid-August 2026), and change constantly. Past performance is not a promise of future results. All investments carry risk; share prices can go down as well as up, and you may get back less than you invest. Always verify current figures on a live source and consider consulting a licensed financial advisor before investing.
