The NSE (Nairobi Securities Exchange) ended the August trading period on a bullish mood with the 10, 20 and 25-Share Indices edging upwards by 6.7%, 5.7% and 5.9%, respectively, compared to July. Safaricom was the top traded stock, accounting for 25.4% of the month’s turnover, with banking stocks topping the majority of the top traded […]
The NSE (Nairobi Securities Exchange) ended the August trading period on a bullish mood with the 10, 20 and 25-Share Indices edging upwards by 6.7%, 5.7% and 5.9%, respectively, compared to July.
Safaricom was the top traded stock, accounting for 25.4% of the month’s turnover, with banking stocks topping the majority of the top traded list.
Shri Krishana Overseas Limited(SKL) was the month’s top gainer, soaring 99.1% between July and August to KSh 21.50. Kapchorua Tea, on the other hand, shed 9.6% to KSh 339.25, closing as the top loser of the month.
As September trading begins, investors’ attention is still on Shri Krishana, who share prices have continued to rally over the past few days of this week.
According to analysts, investors appetite appears to have been ignited by the firm’s improvement in 2026 half-year net earnings. The listed packaging firm has the same structural design as that of Car & General in terms of shareholding structure, and free float-shares available for trading at the bourse.
HI G H LI GH T S
– Revenue of KSh 194.3 million, 22.5% ahead of the first half of 2025 and 55.3% of the whole of last
year’s turnover.
– Gross margin of 18.4%, against 20.5% in the second half of 2025 and 30.5% a year ago, reflecting
weaker demand from the floriculture sector and higher input costs.
– Operating profit of KSh 13.9 million, close to three times the KSh 4.7 million earned in the second half
of 2025.
– Profit after tax of KSh 4.2 million (2025: KSh 2.0 million). Earnings per share of KSh 0.083.
– KSh 64.1 million invested in the period, taking the Kisaju plant to KSh 162.2 million. Commissioning is
expected in November 2026.
NSE investors are banking on the firm’s improved earnings and expansion plans that is expected to increase its production capacity seven-fold. Demand for the firm’s products are currently exceeding its ability to supply, implying a huge headroom and revenue potential for the listed packaging firm.
Informed investors at the NSE took advantage of the panic when the firm’s half-year net earnings took a dive, forcing the firm to issue a profit alert in 2025.
SKL has opted for debt financing to fund its expansion program. According to the Company’s Board, the subdued half-year performance is attributed to huge borrowings to finance its Kisaju project.
The firm’s long term borrowings as at June 30th, 2025 was KSh113 million up from KSh3.5 million as at June 30th, 2024. SKL has also acquired additional machinery to increase production capacity at its industrial area plant.
While debt financing often prices in as a negative even on financial performance, investors at the NSE appear to have shifted their attention of what SKL generates as cash from its operations.
Informed retail and institutional investors as well as foreigners have taken advantage of the firm’s structural volatility, to position strategically, hence the SKL rally.
Shri Krishana Overseas Limited is run by Dr Sonvir Singh, its Managing Director and co-founder of the firm and Nirmal Chaudhary, the firm’s Financial Director.
The two individuals established the packaging outfit in 2009. Chaudhary relocated to Kenya from India in 2007 and co-founded SKL, bringing in her immense expertise and academics, including a Masters in Computer Science and Diploma in Finance and Accounting.
As the dividends season hits the NSE, and as Kenya enters the 2027 election cycle, fund managers, seasoned local and foreign investors are positioning. Their approach is not simply to buy and wait for an election-driven rally.
They are positioning across different time horizons to maximize returns while maintaining a margin of safety in case the market corrects, stagnates or becomes volatile during and after the 2027 polls.
This is why the NSE has recorded an upward swing and fall in share prices across several counters. These movements create trading opportunities for investors who understand market structure and liquidity.
At the same time, the number of Collective Investment Schemes and fund managers participating at the NSE has increased. This has created deeper competition for available opportunities on the NSE, further influencing how institutional and professional investors position themselves.
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