Shares are one of the most popular investments for many people, and there are plenty of Kenyan stocks to choose from in this list of Best Shares to Buy in Kenya. This list details the 10 best shares you should buy in Kenya for 2023, with a brief description of why they are worth your time.
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10 Best Shares to Buy in Kenya in 2023
1. Safaricom PLC
This telecommunications company has been in business for some time now. It is the biggest mobile service provider in Kenya, so it is no surprise that its stock is one of the best to buy in Kenya.
Safaricom has some very powerful stats. It has total equity of $15.4 billion, and its shares are currently going for Kshs 37.95.
In fact, according to Business Insider Africa, Safaricom is the most valuable firm by market cap in East Africa. This is about 49% of the total market capitalization of the top 30 companies in EA.
So, Safaricom is the most prized brand not only in Kenya most also in East Africa as a whole. Here’s how to buy their shares, a full guide.
What’s more, Safaricom’s profit for the 2021 financial year rose by 17.7% to hit Ksh 146 billion. This is quite plausible compared to 2020’s profit of Ksh 124.5 Billion.
So, if you are seriously looking for the best shares to buy in Kenya, Safaricom stock should be a top priority.
2. Kenya Commercial Bank Group
This is another company that has been in the Kenyan market for some time now. Right now, it is one of the biggest companies on the Nairobi Securities Exchange, with a total valuation of around Kshs 147.8 billion.
Its stock price stands at around KShs 45.95 at the time of writing.
Kenya Commercial Bank is an incredibly stable company, with a good history of paying out dividends to its shareholders on time. The company paid more than KShs 15 billion in dividends between 2010 and 2019.
In 2019 alone, the company disbursed Ksh 2.12 billion in dividends to the treasury..
It also has some very impressive EPS (Earnings per share) figures. Its EPS stands at Kshs 10.54, while its P/E ratio is at 4.36.
Both these figures are more than acceptable for a company of this size.
As you can see, KCB has some really solid stats, which means more profits in the future. Meanwhile, the fact that it pays its shareholders dividends on time signals that it has a lot of staying power.
Finally, the bank’s profitability is a great example of its competitive advantage, in that it can reasonably expect to make more money in 2022 than competitors do.
All these factors combined mean that Kenya Commercial Bank Group is one of the best stocks to buy in Kenya right now.
3. Britam Holdings Ltd.
Britam is no doubt one of the biggest insurance providers in Kenya right now. The company has a market capitalization of around Kshs 17.77 billion.
Shares in Britam are currently trading for around Kshs 7.26 each, which is much lower than the first two companies we have looked at. However, the stock is still pretty solid and a good option if you’re just starting and looking for something affordable.
Britam Holdings has been around since 1965 and has consistently paid dividends for many years now. The company paid its shareholders dividends worth Kshs 630.9 million at Ksh 0.25 per share in 2021.
Britam differs from KCB and Safaricom in that it does not pay dividends every year, but rather only when there is a special dividend up for grabs. For instance, the company did not pay its shareholders dividends for the financial year 2020 due to a depressed performance.
However, even if the company only pays dividends periodically, its reliability means that you will be paid for holding the stock.
Lastly, as a Kenyan company with a long history of making money and paying dividends, Britam is likely to be around for a long time.
This means that people will continue to hold their shares and potentially pay out another batch of dividends
All this means that Britam Holdings PLC is one of the best shares to buy in Kenya in 2022.
4. Equity Group Holdings
Equity bank has been a huge player in the financial sector in Kenya. It is ranked among the top banks in the country and is a favourite of many investors.
The company’s market capitalization is around Kshs 198.12 billion, making it the second most valuable company in Kenya by market cap.
Equity Bank has been in business for over 40 years, which means that it is a well-established player in Kenya’s financial industry. Plus, unlike many banks in the world (that have been found guilty of committing crimes), Equity Bank has a clean record.
Equity is also the largest bank in Kenya by assets.
Although Equity’s dividend policy is not very reliable, it has one of the biggest payouts. For instance, the company announced a payout amount of Sh9.43 billion in 2020
This is close to KCB’s payout of around Ksh 11 billion for the same year. So, Equity Bank will be a great pick for your investment portfolio.
5. Nation Media Group
Nation Media Group is a media conglomerate that controls a group of print, digital and broadcast media. These include NTV, Daily Nation, Taifa Leo, Business Daily and many more.
The Group’s market capitalization stands at Kshs 3.56 billion, which is quite low compared to the other companies in this list. With around Ksh 18.7 price per share (at the time of writing), this is one of the cheapest shares you can buy in Kenya right now.
NMG has been in Kenya’s media and entertainment industry for over six decades and is widely regarded as the market leader in this space.
In 2022, Nation Media Group can be expected to remain one of Kenya’s top companies in its field. The company even recently reshuffled its top leadership in a bit to keep up with the ever-changing market dynamics.
Plus, its presence in the print and online media industry means that it will remain relevant in the foreseeable future.
Besides all this, what makes Nation Media Group one of the best stocks to buy in Kenya right now is the fact that it pays dividends regularly. For instance, it paid out dividends worth Kshs 6 billion in 2019.
For these reasons, Nation Media Group is no doubt one of the best stocks to buy in Kenya right now.
6. Centum Investment Company Ltd
Centum Investment Company Ltd is a financial services provider with a market capitalization of Kshs 9.32 billion.
Over the past four decades, this company has been able to build a strong presence in Kenya’s finance industry. It is one of the most valuable investment firms in the country.
In 2022, Centum will probably continue to offer lucrative investment opportunities to people who hold its shares. That is because this company has a long history of making money and paying dividends.
Moreover, the fact that its services close to 50,000 investors mean that many people believe in the company’s ability to turn a profit.
And Centum is likely to remain relevant in 2022 and going forward, you can expect to enjoy a steady stream of profits and dividends over the years.
At the time of writing, Centum shares were selling at around Ksh 14.2 each, making it among the most affordable stocks to buy in Kenya.
7. Limuru Tea Company
If you are looking for some profitable shares in the agricultural sector, you won’t go wrong with Limuru Tea Company. This is among the biggest growers of green leaf tea in Kenya and is an out-grower of Unilever Tea Kenya Limited.
For this reason, Unilever holds about 52% of the issued share capital of Limuru Tea and acts as the company’s managing agent in the growing, manufacturing, sales and marketing of its teas.
This is one of the most valuable companies in Kenya with a market cap of around Ksh 768 million and a price per share of Ksh 320 at press time. The low market capitalization is because the company has only 2.4 million outstanding shares.
This is fairly low compared to a company like Safaricom which has over 40 billion shares
The limited number of shares is also why the price is relatively high compared to the other companies.
What makes Limuru Tea one of the best stocks to buy in Kenya right now is the fact that its growth potential has not been fully realized.
Also, unlike most tea companies in Kenya (that do not pay dividends), Limuru Tea rewards its shareholders with dividends whenever it makes a profit.
As one of Kenya’s leading tea companies, Limuru Tea will likely grow even further over the next several years.
The company continues to benefit from its position as a market leader as it is still able to command higher prices for its goods. This in turn brings in a lot of revenue in the form of dividends.
8. Kakuzi Limited
This is a Kenyan agro-processing firm that specializes in the production of tea, coffee, macadamia nuts, avocado, blueberries, livestock and commercial forestry.
Its market capitalization stands at KShs 7.69 billion with a high price per share of Ksh 415. Kakuzi is listed both at the Nairobi Securities Exchange (NSE) and London Stock Exchange.
Even though this is a relatively small company (in terms of market capitalization), it makes for an excellent investment opportunity because you will get good returns on your money as past investors have proved.
This is one of the most valuable agricultural firms in Kenya with multiple awards in the sector.
Kakuzi Limited currently has a price-to-earnings ratio of 14.96, which means that you can expect good returns on your money if you invest in this company right now.
What makes Kakuzi one of the best stocks to buy in Kenya right now is the fact that it focuses on sustainable agriculture practices. This means that production costs are relatively low, which in turn means that even if it faces stiff competition in the market, Kakuzi is still likely to offer good returns.
That being said, one of the main reasons why you should buy shares in this company is its dominance in the agricultural sector. For instance, it produces 40% of macadamia nuts sold in Kenya and has been invariably lauded as the largest avocado exporter in the country.
So, for anyone looking for the best shares to buy in Kenya, Kakuzi deserves a spot in your portfolio.
9. Bamburi Cement Limited
Another good stock for you to buy is Bamburi Cement Limited.
This is a leading cement company in Kenya that has experienced steady growth over the years.
Its market cap currently stands at KShs 13.96 billion, which means you can buy 1000 shares of this company for around KShs 38k. Bamburi Cement is ranked the most valuable cement manufacturer with a market share of around 32.6%.
The main reason why buying Bamburi Cement Limited makes sense is that it is a local company that has operations in multiple countries. This gives it an edge, as it is likely to continue enjoying steady sales regardless of what happens in the Kenyan economy.
For instance, even though cement demand might slump in Kenya, you can expect Bamburi Cement Limited’s operations abroad to offset those losses and keep this company profitable.
This is especially true since the cement market in Kenya has an annual growth rate of close to 5%. This means that even if Bamburi Cement Limited does not make any major changes, it will still grow steadily over the next four years (and this pace can be accelerated by making some tactical decisions).
Finally, another reason why you should invest in this company is its profitability metrics. For instance, Bamburi Cement Limited’s investment yield is close to 8%, while its debt-to-equity ratio stands at under 10%. Combined with a P/E of 11.69, these numbers point to good returns for you if you buy shares in the company today.
10. Car and General Limited
Another company that is profitable now and likely to remain so in the future is Car and General Limited.
This company’s share price currently stands at KShs 62.25 each, which means that you will need around KShs 62,250 to buy 1000 shares of the company. There are several reasons why you should buy shares in Car and General Limited right now.
For instance, this is a leading motor vehicle dealer in Kenya that also offers insurance and finance services to its customers. This gives it an edge because even if the Kenyan economy is struggling (and the automotive sector is reeling from it), Car and General will remain profitable.
That being said, one of the main reasons why you should buy shares in this company is that it has a well-diversified product offering. For example, its finance and insurance services (which account for almost 30 per cent of sales) help to insulate it from economic shocks.
Another reason to buy Car and General Limited shares is that it offers steady returns on investment. For instance, this company offers a 16.32% return on invested capital which is not that bad.
This means you can expect to continue earning healthy profits if you buy shares in the company today.
How to Buy The Best Shares in Kenya
Several stockbrokers in Kenya allow you to buy shares. However, not all brokers can provide you with access to shares listed on the Nairobi Securities Exchange (NSE).
It is, therefore, important that you choose a stock broker that is approved by both NSE and CMA. This will help you to insulate yourself against investment risks.
Otherwise, you get access to these stocks by applying for a Capital Markets Authority-registered trading account. These accounts let you trade in all securities that are listed on the NSE without using a stockbroker.
