Table of Contents
- Introduction
- Safaricom PLC (SCOM)
- KCB Group (KCB)
- I&M Group (IMH)
- NCBA Group (NCBA)
- East African Breweries Limited (EABL)
- Co-operative Bank of Kenya
- Britam Holdings
- HF Group
- Equity Group Holdings
- British American Tobacco Kenya (BAT)
- Bonus Mentions
- Key Valuation Factors
- Suggested Portfolio Mix
- Risks to Watch
- Conclusion
- Frequently Asked Questions (FAQ)
Kenya’s equities market has shown renewed strength in 2025. Inflation is easing, the Central Bank is signaling possible interest rate cuts, foreign exchange reserves have improved, and sovereign rating upgrades have boosted investor sentiment. Banks with strong regional footprints, companies with stable dividends, and sectors enjoying natural tailwinds such as telecoms, FMCG, and insurance are now attracting increased attention.
In this blog, we’ll explore 10 of the best shares to buy in Kenya as of September 2025. These picks combine stability, growth, and dividend potential. Some are defensive stocks, others are more aggressive growth plays, and together they paint a clear picture of where value lies in the Nairobi Securities Exchange (NSE).
1. Safaricom PLC (Ticker: SCOM)
Why it looks good:
Safaricom remains Kenya’s largest and most valuable company. M-PESA continues to dominate mobile money services, while data usage has been steadily rising as more Kenyans go digital. Its Ethiopian expansion is finally showing signs of traction, and analysts expect that venture to break even within the next two years.
In FY2025, Safaricom posted over 10% growth in profit before tax, rising from about KSh 84 billion to over KSh 93 billion. Revenues were up by more than 11%, showing resilience even in a tough macroeconomic environment. Analysts also expect management to increase dividend payout closer to their 80% policy once the Ethiopian subsidiary losses narrow.
Risks: Currency volatility in Ethiopia, regulatory pressure on M-PESA fees, and competition from internet service providers.
Verdict: A solid “core” holding for most investors. Safaricom offers both growth and reliable dividends, making it a cornerstone stock for Kenyan portfolios.
2. KCB Group (Ticker: KCB)
Why promising:
KCB is Kenya’s largest bank by assets and has an extensive regional presence across East Africa. In the first half of 2025, it posted about 8% growth in profit after tax, supported by strong non-Kenyan subsidiaries. With interest rates expected to ease, KCB is positioned to benefit from improved margins.
The bank has a history of rewarding investors with generous dividends, and interim special payouts signal management’s confidence in its financial position. Regional expansion continues to drive diversification and growth.
Risks: Non-performing loans remain a challenge across the banking sector. High deposit competition could also pressure margins.
Verdict: A good buy for investors seeking banking exposure, regional diversification, and steady dividends.
3. I&M Group (Ticker: IMH)
Why it could outperform:
I&M Group reported an impressive 36% rise in profit after tax for the half year ending June 2025. Growth was driven by strong interest income as well as improved non-funded income streams such as trading and fees.
The bank has also been expanding its branch network and digital platforms, allowing it to capture a growing customer base. With interest rates projected to stabilize, I&M is positioned to maintain double-digit earnings growth.
Risks: Declines in other income streams like foreign exchange gains could affect results. Regulatory risks in banking remain a factor.
Verdict: Among Kenyan banks, I&M stands out for dynamic growth and balanced revenue sources.
4. NCBA Group (Ticker: NCBA)
Why attractive:
NCBA has emerged as one of Kenya’s fastest-growing banks. In the first half of 2025, profit after tax rose by nearly 13% year-on-year, reaching about KSh 11 billion. Earnings per share climbed from KSh 5.96 to KSh 6.71, a healthy improvement.
The bank is focused on lowering its cost of funds and driving balanced growth between interest income and non-interest revenues. Its mobile banking products, particularly in digital lending, give it a competitive advantage.
Risks: A slight decline in loan volumes has been noted, and high inflation could still pressure borrowers.
Verdict: A strong mid-to-long-term buy. Investors get both growth potential and dividends.
5. East African Breweries Limited (EABL)
Why attractive:
EABL is the region’s largest beverage company and one of the most defensive stocks on the NSE. Its iconic beer and spirits brands give it unmatched brand equity across East Africa.
The company has been increasing dividend payments: interim dividends for FY2025 rose to KSh 2.50 compared to KSh 1.00 the previous year. Overall, dividend yield stands at around 3.6%, attractive for investors seeking steady income. With resilient demand for its products, EABL remains a solid choice in both good and tough times.
Risks: Rising raw material costs and excise taxes on alcohol remain threats to margins.
Verdict: A strong “income plus growth” play. EABL is a must-have defensive stock.
6. Co-operative Bank of Kenya
Why to consider:
Co-operative Bank has built a reputation for stable performance. In its half-year 2025 report, the bank showed healthy operating income growth. With a large base of cooperative society members and a focus on SME lending, it has a unique niche.
Analysts estimate around 14% upside from current valuations. Its conservative loan book and efficient cost management make it a defensive option within the banking sector.
Risks: Exposure to non-performing loans and economic slowdowns that affect SMEs.
Verdict: A good supplementary banking stock for investors seeking safety and moderate growth.
7. Britam Holdings
Why it might shine:
Britam, a leading insurance and financial services company, has been recovering strongly. Its life insurance, general insurance, and asset management divisions are all improving profitability. Analysts see Britam as undervalued relative to its growth potential.
The management team is committed to restoring consistent dividends, a positive sign for shareholders.
Risks: Insurance firms face high claims costs, reinsurance pricing, and investment portfolio volatility.
Verdict: A higher-risk, higher-reward stock. If Britam continues executing its turnaround, it could deliver outsized returns.
8. HF Group
Why HF is interesting:
HF Group is undergoing a major transformation from a pure mortgage lender into a diversified retail and SME bank. This shift expands its customer base and future revenue potential.
In the first half of 2025, HF posted an incredible 148% jump in profit before tax, rising from KSh 283 million to over KSh 700 million. A rights issue that raised KSh 6.38 billion has strengthened its balance sheet and positioned it for expansion.
Risks: As a smaller bank, HF is more vulnerable to liquidity shocks, competition, and credit risks.
Verdict: A speculative but exciting growth play for investors willing to accept higher risk.
9. Equity Group Holdings
Why it continues to be strong:
Equity Group remains the most dominant bank in East and Central Africa. Its scale, reach, and diversified operations give it resilience even during challenging periods.
Equity’s balance sheet strength and regional footprint mean it stands to benefit significantly from falling interest rates and economic recovery. The bank has also been a consistent dividend payer.
Risks: Asset quality remains a concern if economic growth slows. Operating across multiple countries also exposes it to regulatory risks.
Verdict: A “safe bet” among the banks, combining stability with consistent long-term growth.
10. British American Tobacco Kenya (BAT Kenya)
Why still relevant:
BAT Kenya offers stability and some of the most reliable dividend payouts on the NSE. Despite regulatory headwinds, its business remains cash-flow rich with high profit margins.
Investors who prioritize income appreciate BAT’s strong dividend history. In volatile markets, it serves as a defensive counterbalance to riskier growth stocks.
Risks: Excise tax increases, tougher regulations, and long-term declines in tobacco consumption.
Verdict: Best for income-focused investors seeking defensive exposure.
Bonus Mentions
- Stanbic Holdings Kenya: Stable dividends and growing profitability.
- Absa Bank Kenya: A steady banking stock with improving results.
- Jubilee Holdings: A leading insurance group with regional growth opportunities.
- Kenya Reinsurance: Posted strong profit growth in 2025, offering potential upside.
Key Valuation Factors
When evaluating these stocks, consider:
- P/E Ratios: Some, like Safaricom, trade at a premium due to growth potential. Others, like banks, trade at more modest multiples.
- Dividend Yield: EABL, BAT, and banks like Equity and Co-op Bank offer reliable yields.
- Growth Trends: Look for consistent revenue and profit growth over several years.
- Macro Conditions: Inflation, interest rates, and foreign exchange rates will influence performance.
- Diversification: Companies with operations across the region can reduce Kenya-specific risks but face foreign exchange challenges.
Suggested Portfolio Mix
Depending on your risk appetite:
- Conservative Income Portfolio: Safaricom, EABL, BAT, Equity, Co-op Bank.
- Balanced Portfolio: Add NCBA, I&M, and Britam alongside the conservative picks.
- Aggressive Growth Portfolio: Higher exposure to HF Group, I&M, Britam, and KCB.
Risks to Watch
- Macroeconomic shocks – inflation or high interest rates can reduce profitability.
- Regulation – excise tax hikes, telecom rules, or banking oversight changes.
- Currency fluctuations – especially for companies with regional subsidiaries.
- Non-performing loans – a persistent challenge for banks.
- Commodity prices – affecting input costs for brewers, manufacturers, and FMCGs.
Conclusion
As of September 2025, the Nairobi Securities Exchange presents a rich mix of opportunities. Safaricom remains a dominant force with growth and dividends. The big banks — Equity, KCB, NCBA, I&M, and Co-op Bank — continue to drive the market, offering both capital gains and reliable payouts. Consumer staples like EABL and BAT provide defensive income. Meanwhile, HF Group and Britam offer higher-risk but higher-reward growth potential.
For a diversified portfolio, a mix of telecom, banks, insurance, and consumer goods can give both safety and upside. A balanced allocation might be 50% in stable large-caps like Safaricom, Equity, and EABL; 30% in mid-growth banks like NCBA and I&M; and 20% in speculative plays like HF and Britam.
Investors who position themselves early in these names stand to benefit from both dividend income and capital appreciation as Kenya’s economy continues to recover and grow.
Frequently Asked Questions (FAQ)
1. What are the best shares to buy in Kenya right now?
The top 10 include Safaricom, KCB, I&M, NCBA, EABL, Co-operative Bank, Britam, HF Group, Equity Group, and BAT Kenya. These combine growth, dividends, and defensive stability.
2. Which share is the safest investment in Kenya in 2025?
Safaricom is considered the safest due to its market dominance, strong cash flows, and consistent dividends. Equity Group and EABL also provide stability.
3. Which NSE stock gives the highest dividends?
BAT Kenya and banks like Co-operative and Equity Group are known for reliable, high dividend payouts. EABL also offers steady income with semi-annual dividends.
4. What is the most profitable bank stock to buy?
KCB, Equity, and NCBA are the strongest performers in 2025. NCBA has shown double-digit profit growth, while KCB and Equity dominate the regional market.
5. Is Safaricom still a good buy in 2025?
Yes. Safaricom continues to deliver revenue and profit growth, supported by M-PESA and data services. Its Ethiopian expansion is expected to boost future earnings.
6. What are the risks of buying shares in Kenya?
Major risks include inflation, high interest rates, non-performing loans in banks, regulatory changes, taxation, and currency volatility.
7. How can a beginner invest in shares in Kenya?
You need to open a Central Depository and Settlement Corporation (CDSC) account through a licensed stockbroker. From there, you can buy and sell NSE-listed stocks online or via your broker.
8. Are NSE shares undervalued in 2025?
Many analysts believe Kenyan equities are undervalued compared to regional peers, especially banking stocks and select insurers like Britam.
9. Which shares are high-risk but high-reward?
HF Group and Britam stand out as higher-risk plays with strong growth potential if their strategies succeed.
10. Should I focus on dividends or growth stocks?
That depends on your goals. Dividend stocks like BAT, EABL, and Co-operative Bank are great for income. Growth stocks like Safaricom, NCBA, I&M, and HF are better for long-term capital gains.
