Co-op Bank overtakes EABL in Nairobi bourse shake-up as market rally reshapes top five

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.