15 Best Stocks To Buy In Kenya
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Introduction
These are some of the best stocks to buy in Kenya right now that you can buy and hold for a long time.
Stock markets are notoriously unstable, but with the right shares, you can gradually increase your wealth over time.
With hundreds of stocks, it is difficult to identify the best investments. Ten outstanding businesses that started out by being listed on the Nairobi Securities Exchange or starting to pay dividends have consistently increased their sales and profits.
How to Trade the Best Stocks to Buy in Kenya
You can purchase shares from a variety of stockbrokers in Kenya. You may not, however, have access to shares listed on the Nairobi Securities Exchange through all brokers (NSE).
It is crucial that you pick a stock broker who has received NSE and CMA approval. You can protect yourself from investing dangers by doing this.
If not, the only way to access these stocks is by opening a trading account that is registered with the Capital Markets Authority. You can trade in all securities listed on the NSE utilizing these accounts without needing a stockbroker.
Features that the Best Stocks to Buy in Kenya Must Have
The best stocks to buy in Kenya must have a strong foundation and should also have the following qualities:
- A successful track record of expansion and profitability.
- Barriers preventing or restricting competition from encroaching on their business are known as competitive solid advantages.
- With lots of cash and little debt, a sound balance sheet is a financial fortress.
- Low levels of institutional ownership; broad diversification is advantageous to shareholders.
- With the help of our interactive Earnings, Sales, and Book Value Per Share widgets, you can learn more about reasonable valuations for earnings, sales, and book value per share.
- Dividends that are steady or increase over time.
- NSE share prices as of today.
15 Best Stocks To Buy In Kenya
These are the best stocks to buy in Kenya that you can hold for a long time.
1. Safaricom PLC
Leading telecoms service provider in Kenya is Safaricom. With more than 42 million users, it has the largest mobile network operator in terms of subscriber count, service coverage, and revenue market share.
This telecoms firm has been in operation for a while. It should come as no surprise that its stock is one of the best stocks to buy in Kenya given that it is the largest mobile service provider in the country.
The share price of Safaricom, which has a payout ratio of more than 100%, provides you with the best long-term profits. The nicest part of holding shares of this telecom behemoth, Safaricom, is that you can anticipate sizable dividends each year without worrying about losing a lot of money due to stock market crashes.
There are some pretty potent data on Safaricom. Its shares are now trading for Kshs 37.95 and it has a total equity value of $15.4 billion[1].
In fact, Safaricom is the most valued company in East Africa based on market cap, according to Business Insider Africa. This represents almost 49% of the top 30 EA companies’ combined market valuation.
So in essence, Safaricom is the most coveted brand throughout all of East Africa, not just in Kenya.
Additionally, Safaricom’s profit for the fiscal year 2021 increased by 17.7% to Ksh 146 billion. When compared to 2020’s profit of Ksh 124.5 Billion, this is extremely conceivable.
Safaricom stock should be your top choice if you are truly looking for the greatest shares to buy in Kenya.
If you can, it’s probably advisable to make substantial investments because they will eventually yield enormous profits.
2. Kenya Commercial Bank Group PLC
Another business that has a long history in Kenya is this one. With a total capitalization of about Kshs 147.8 billion, it is actually one of the largest companies listed on the Nairobi Securities Exchange at the moment, and is one of the best stocks to buy in Kenya.
Financial services are offered by Kenya Commercial Bank Group PLC in Madagascar, the Indian Ocean Islands, and East Africa.
Large organizations, small to medium-sized businesses, wholesale businesses, and private citizens in Uganda, Tanzania, Rwanda, Burundi, the Democratic Republic of the Congo, and South Sudan can all take advantage of its commercial banking services.
At the time of writing, the stock price is approximately KShs 45.95.
Kenya Commercial Bank is a very stable business with a track record of promptly delivering dividends to its shareholders. In reality, between 2010 and 2019, the business distributed dividends totaling more than KShs 15 billion.
The business paid the treasury dividends of Ksh 2.12 billion just in 2019 alone.
Additionally, it has some extremely strong EPS (Earnings per Share) numbers. Its P/E ratio is 4.36, and its EPS is Kshs 10.54.
Both of these numbers are more than satisfactory for a business of this size.
As you can see, KCB has some extremely impressive statistics, which bodes well for future earnings. The fact that it consistently pays dividends to its shareholders, however, shows that it has a strong future.
The bank may reasonably anticipate making more money in 2022 than competitors, which is a terrific demonstration of its competitive advantage.
Together, these elements make Kenya Commercial Bank Group one of the best stocks to buy in Kenya at the moment.
The dividend yield for this bank, which has been paying dividends for almost 20 years, is over 9.5%. Additionally, KCB GROUP distributes more than half of its annual profits to shareholders.
The best course of action is probably to put money in this bank and then forget about it because you can be sure that it will grow. Considering that dividends are distributed twice a year.
3. Kakuzi PLC / Kakuzi Limited
Kenyan agricultural production and processing company Kakuzi PLC is traded on the Nairobi Stock Exchange. It is appropriate for every portfolio because it has been providing dividends since 2008.
The best aspect of Kakuzi PLC is that it provides long-term profits in the double digits and nearly no tax on dividends that are received annually.
Due to Kakuzi PLC’s constantly rising dividends every year since 2008, you can definitely purchase a share and hold onto it for months, years, or even decades.
This company produces tea, coffee, macadamia nuts, avocado, blueberries, cattle, and commercial forestry. It is a Kenyan agro-processing company.
It has a KShs 7.69 billion market capitalization and a high Ksh 415 share price per share. Both the Nairobi Securities Exchange (NSE) and the London Stock Exchange list Kakuzi.
This company, despite being relatively tiny (in terms of market capitalization), offers a great opportunity for investors since, as previous investors have shown, you may expect to get a substantial return on your investment.
With numerous accolades in the industry, this is one of Kenya’s most valued agricultural businesses.
Given that Kakuzi Limited’s price-to-earnings ratio is at 14.96, investing in this business now is likely to yield profitable results.
The fact that Kakuzi concentrates on sustainable agricultural methods makes it one of thebest stocks to buy in Kenya right now. Due to the low production costs, Kakuzi is still likely to provide a strong return on investment even in the face of fierce market rivalry.
Having said that, this company’s supremacy in the agricultural industry is one of the key reasons you should purchase shares of it. For instance, it consistently receives praise for being the leading avocado exporter in the nation and produces 40% of the macadamia nuts marketed in Kenya.
So, if you’re seeking for the greatest Kenyan stocks to buy, Kakuzi should unquestionably be included in your portfolio.
4. Kenya Reinsurance Corporation
The major reinsurer in the nation is Kenya Reinsurance Corporation PLC (KRC). It provides business and retail customers in Kenya with property, marine, aviation, and motor insurance products.
The business is a unit of Nairobi, Kenya-based insurance holding company Knight Lloyd Insurance Holdings Ltd.
Kenya Re, which provides excellent returns, is one of the best stocks to buy in Kenya right now. Furthermore, it offers a dividend yield of more than 10%.
For more than ten years, the company has increased its net earnings, and there is little question that it will do so in the future.
5. Britam Holdings Ltd.
Without a doubt, Britam is currently one of Kenya’s largest insurance providers. The market value of the company is approximately Kshs 17.77 billion.
Britam’s shares are currently trading at about Kshs 7.26 per share, which is significantly less than the prices of the previous two businesses we’ve examined. The stock is still a fantastic choice if you’re just starting out and searching for something economical, though, as it remains quite stable.
Britam Holdings has been in business since 1965 and has a long history of dividend payments. In fact, the business distributed dividends to stockholders in 2021 totaling Ksh 630.9 million at Ksh 0.25 per share.
Britam is different from KCB and Safaricom in that it only pays dividends when a special payout is available, as opposed to doing so annually. For instance, the company’s poor profitability prevented it from paying dividends to its shareholders for the 2020 fiscal year.
However, the company’s dependability ensures that you will be compensated for owning the stock even if it only pays dividends sometimes.
Last but not least, Britam is expected to be there for a very long time as a Kenyan firm with a strong history of producing money and paying dividends.
This implies that investors will keep holding its shares and maybe distribute additional dividends.
Given all of this, Britam Holdings PLC is among the top Kenyan stocks to buy in 2022.
6. Equity Group Holdings
With assets at more than Ksh 3 trillion, Equity Group Holdings Limited is Kenya’s largest banking organization. Its investment division, Equity Group Investments Limited, is in charge of overseeing its holdings throughout various Kenyan economic sectors.
A significant player in Kenya’s financial industry is Equity Bank. Being one of the best banks in the nation and one of the best stocks to buy in Kenya, it is a favorite among investors.
With a market valuation of over Kshs 198.12 billion, the business is the second most valuable in Kenya.
Given that Equity Bank has been around for more than 40 years, it is a reputable player in Kenya’s financial sector. Additionally, Equity Bank has a spotless record, in contrast to many other banks around the world (that have been found guilty of perpetrating crimes).
Through its retail banking, commercial banking, treasury services, and investment departments, it operates in a number of markets.
This bank is one of the best stocks to buy in Kenya when considering growth and stability because it has provided you with excellent dividends every year since it began paying them in 2007.
In reality, Equity has the most assets of any bank in Kenya.
The company has subsidiaries in Kenya, South Sudan, Uganda, Mauritius, Rwanda, and Tanzania.
Equity has one of the highest payments despite its unreliable dividend policy. As an illustration, the business disclosed a dividend amount of Sh9.43 billion for 2020.
This is comparable to KCB’s compensation for the same year, which was close to Ksh 11 billion. Equity Bank will, therefore, undoubtedly be a fantastic choice for your investment portfolio.
7. Unilever Kenya PLC
A worldwide manufacturer of consumer goods, Unilever makes foods, drinks, cleaning supplies, cosmetics, and other items for the skin and hair. It employs about 170,000 people and runs businesses in more than 100 nations.
It is a smart investment for your portfolio because, since 2008, its revenue has increased annually.
The benefit of having shares in Unilever PLC is that you can enjoy hefty dividend payments each year without worrying about your money being lost in the event of a stock market crisis.
Given its size, Unilever PLC will keep expanding as long as people throughout the world continue to purchase its goods, particularly in developing nations like Kenya.
8. Limuru Tea Company
Limuru Tea Company is a great option if you’re seeking for some profitable agricultural stock. This company supplies green leaf tea to Unilever Tea Kenya Limited and is one of the best stocks to buy in Kenya and also one of the largest green leaf tea farmers in Kenya
Unilever serves as Limuru Tea’s managing agent for the growing, production, sales, and marketing of its teas, and now owns around 52% of the company’s issued share capital.
A market cap of around Ksh 768 million and a share price of Ksh 320 at the time of publication make this one of the most valuable firms in Kenya. Only 2.4 million shares of the company’s outstanding stock are the source of its low market capitalisation.
When compared to a corporation like Safaricom, which has more over 40 billion shares, this is rather low.
The price is relatively expensive in comparison to other corporations because there are fewer shares available.
9. Bamburi Cement PLC
You should also consider purchasing Bamburi Cement Limited stock.
This is a well-known cement business in Kenya that has grown consistently throughout the years.
Portland cement, quicklime, and hydrated lime are all produced and distributed by Bamburi Cement PLC.
One of the biggest manufacturers of building materials in the world, LafargeHolcim Ltd., is the parent company of the business. has been paying dividends for almost seven years, and it currently offers a dividend yield of over 10%.
Due to its ability to grow its income and annual distribution of earnings to shareholders, Bamburi Cement Company is among the most frequently suggested businesses to purchase.
Since it now has a market capitalization of KSh 13.96 billion, 1000 shares of this firm cost about KSh 38,000. Bamburi Cement holds a market share of about 32.6%, making it the most valued cement producer.
The fact that Bamburi Cement Limited is a local business with activities in other nations is the key factor in favor of purchasing it. Due of the likelihood of steady sales regardless of what happens to the Kenyan economy, this gives it an advantage.
For instance, even though Kenya’s demand for cement may decline, Bamburi Cement Limited’s activities abroad should be able to make up for such losses and keep the business profitable.
This is particularly true given Kenya’s cement market’s near to 5% yearly growth rate. This suggests that Bamburi Cement Limited will continue to develop consistently over the ensuing four years even if it makes no significant changes (and this pace can be accelerated by making some tactical decisions).
Finally, the profitability measures of this business are still additional justification for investing in it. For instance, Bamburi Cement Limited has a debt-to-equity ratio of under 10% and an investment yield that is close to 8%. These figures suggest that if you purchase shares of the company today, you would get good gains thanks to the P/E ratio of 11.69.
10. Car and General Limited
Car and General Limited is another business that is lucrative right now and will probably continue to be so in the future.
At the current share price of KSh 62.25, you would need around KSh 62,250 to purchase 1000 shares of this firm. There are several reasons why you ought to purchase Car and General Limited shares at this time.
For instance, this is a well-known car dealer in Kenya that also provides its clients with insurance and financing options. This offers it an advantage because Car and General will continue to be profitable even if the Kenyan economy is in trouble (and the automobile industry is suffering as a result).
Having said that, the fact that this company has a well-diversified product line is one of the key reasons you should buy shares. As an illustration, its financial and insurance services (which make up approximately 30% of revenues) aid in protecting it from economic shocks.
The fact that Car and General Limited gives consistent returns on investment is another reason to purchase its stock. For instance, this business provides an acceptable 16.32% return on invested capital.
This indicates that if you invest in the business today, you may anticipate continuing to make good earnings.
11. KenGen
KenGen is a company that produces, distributes, sells, and distributes electricity in Kenya. and is interested in geothermal, wind, and solar power projects in East Africa in addition to the Kenyan renewable energy sector.
Over 95% of the electricity produced in Kenya is produced there, and it sells all of its output to Kenya Power & Lighting Company PLC, the main electrical distributor in the nation.
12. Jubilee Holdings PLC
Integrated financial services provider Jubilee Holdings Limited is based in Kenya. Bank, insurance, asset management, stockbroking, and investment services are provided to both retail and business clients.
One of the best stocks to buy in Kenya is Jubilee Holdings PLC, which gives a dividend yield of roughly 8.9%. There is no question that it will continue to pay dividends in the future; it has done so every year since 2013.
Jubilee Holdings provides you with excellent profits over a long period of time, despite the fact that it is not a safe investment.
13. Nation Media Group
A set of print, internet, and broadcast media are under the management of Nation Media Group, a media conglomerate. NTV, Daily Nation, Taifa Leo, Business Daily, and many others are among them.
The Group has a market cap of Kshs 3.56 billion, which is rather little when compared to the other firms on this list. This is one of the cheapest shares you can purchase in Kenya right now, costing approximately Ksh 18.7 per share (as of the time of writing).
NMG has over 60 years of experience in Kenya’s media and entertainment sector and is largely considered as the industry leader.
Nation Media Group is anticipated to continue to rank among Kenya’s top businesses in its industry in 2022. Even the company’s senior leadership has recently undergone some changes as a result of the dynamically shifting market environment.
Additionally, it will continue to be relevant in the near future due to its involvement in the print and internet media industries.
In addition to all of this, the fact that Nation Media Group consistently pays dividends makes it one of the best stocks to buy in Kenya at the moment. For instance, in 2019 it distributed dividends of Kshs 6 billion.
Due to these factors, Nation Media Group is without a doubt among the top stocks in Kenya to buy at the moment.
14. East Africa Breweries Ltd (EABL)
The biggest brewer in Kenya by volume is East Africa Breweries Ltd (EABL). Among other brands, it creates Senator Keg, Tusker beer, and East African Breweries Ltd (EABL) Export lager.
East Africa Breweries Ltd. is a publicly traded firm on the Nairobi Stock Exchange. Because it offers you a great dividend yield of over 10%, purchasing and holding its stocks is a wise decision.
The nicest part of having shares in East Africa Breweries Ltd. is that you will always receive your money without worrying about losing a lot of money in stock market collapses.
15. Centum Investment Company Ltd
Financial services company Centum Investment Company Ltd. has a market value of Kshs 9.32 billion.
This business has been successful in forging a significant position in Kenya’s finance sector during the past four decades. It is actually among the most lucrative investing companies in the nation.
Centum is likely to keep providing profitable investment opportunities to those who own its shares in 2022. This is due to the company’s long track record of profitability and dividend payments.
Additionally, the fact that the company serves close to 50,000 investors indicates that many individuals have faith in its ability to make a profit.
Moreover, Centum is probably still important in 2022, so as time goes on, you may anticipate receiving regular earnings and dividend payments.
Centum shares are now among the most cost-effective equities to purchase in Kenya, trading for just Ksh 14.2 per share at the time of writing.
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