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What Stocks to Buy in Kenya to Earn High Returns

What are the top 5 stocks to buy in Kenya 2022?

1. Safaricom Plc

2. Kenya Commercial Bank Ltd

3. Equity Bank Ltd

4. East African Breweries Ltd

  1. Bamburi Cement PLC

The stock market is one of the best ways to invest and make money.

Unfortunately, the Kenyan stock market was doing well before the coronavirus, and the war in Ukraine came.

Stock prices are dipping fast as a result.

This is why it is an excellent time to look at stocks in Kenya and see what you can buy now to earn high returns in the future.


a) Investing in the right stocks:


When investing in stocks, you must invest in the right ones.

For example, in Kenya, many companies are doing well and have good growth potential.

Therefore, you should consider investing in those companies to earn higher returns than you would get with other investments like saving accounts or bonds.


b) Buying stocks on dips:


Another way to make money from stocks is by buying them when they dip down and then selling them when they rise up and peak.

What Stocks to Buy in Kenya infographic - What Stocks to Buy in Kenya to Earn High Returns
What Stocks to Buy in Kenya infographic

What is a Stock?

A stock is a share of the ownership in a company.

This ownership stake entitles the owner to part of the company’s profits.
Investing in stocks is one way to grow your wealth.

“A stock is a form of security that indicates the holder has proportionate ownership in the issuing corporation and is sold predominantly on stock exchanges.”

Investopedia

What are the Different Types of Stocks?

There are three types of stocks: 

a) common

b) preferred

c) bonds

a) common:

Common stocks give the holder a share of ownership in the company. 

b) preferred:

Preferred stocks have a fixed dividend rate and usually do not offer investors voting rights. 

 c) bonds:

Bonds are debt instruments that pay interest to bondholders regularly until maturity.

How Do I Choose Which Stocks to Buy?

Many factors affect the stock market and the price of a company’s stock.

The most critical factors to consider are:
– The company’s financial health
– The company’s past performance
– The industry in which the company operates
– How much money is being invested in the company
– How much money is being withdrawn from the company

The top five stocks to buy in Kenya

1. Safaricom Plc

2. Kenya Commercial Bank

3. Equity Bank Ltd

4. East African Breweries Ltd

  1. Bamburi Cement PLC

1. Safaricom Plc

2. Kenya Commercial Bank

3. Equity Bank Ltd

4. East African Breweries Ltd

5. Bamburi Cement PLC

The top five Stocks to Buy in Kenya explained:

1. Safaricom shares

Safaricom is a leading telecommunications company in Kenya.

It has been in operation for over 28 years and has grown to be the largest mobile operator in the country.

Safaricom is the most profitable company in East and Central Africa, with a net profit margin of over 30%.


The company’s shares are listed on the Nairobi Securities Exchange (NSE) and are traded under the symbol “SCOM.”

Safaricom shares have been on an upward trend since 2016, with a growth rate of about 10% per year.

The company has also maintained its dividend payout ratio at around 50%.


As of 14/07/2022, the stock is trading at KES 30 per share, down from KES 42.95, its highest price ceiling in July 2021.

The drop is attributed to the pandemic, war in Ukraine, and the global economic downward spiral.


Thus, it is the right time to invest in Safaricom shares because the stock is on the dip.

It is cheap now but will rise rapidly soon after the war in Ukraine.

Why buy Safaricom shares in Kenya?

Safaricom is a well-managed company with a good reputation. It has been profitable for many years. Its shareholders have benefitted from this as the stock price has steadily increased. As a result, it is a long-term investment stock with tremendous growth potential.

2. Kenya Commercial Bank

Kenya Commercial Bank (KCB) is a commercial bank in East and Central Africa.

It is the second largest financial institution in Kenya by assets and market capitalization. The bank has been operating since 1929.

The current share price (13/07/2022) of KCB Group Limited (KCB) is KES 40.90.


The company was founded in 1929 as a savings and credit cooperative society, with its headquarters at Central Park, Nairobi.

In 1963, it became a commercial bank and was listed on the Nairobi Stock Exchange in 1964.

In 1969, it became a public limited liability company and changed its name to Kenya Commercial Bank Limited.


In 1970, KCB opened its first branch outside of Nairobi at Mombasa on Kenya’s Indian Ocean coast.


Kenya Commercial Bank Group is the third most traded stock on the Nairobi Securities Exchange over the past three months (April – July 2022.)


KCB Group is one of the largest financial institutions in East Africa, with assets worth $6.9 billion as of December 2022.


The company pays out dividends to shareholders every year regardless of how well the company performs financially.

Why buy Kenya Commercial Bank shares in Kenya?

Kenya Commercial Bank is a leading financial institution in Kenya with a market capitalization of KES 130 billion and a history spanning over 100 years. The bank has always had an impressive track record of growth, including having one of the lowest bad debt ratios among Kenyan banks.

3. Equity Bank Ltd

Equity Bank is a Kenyan bank that has operated for over 37 years.

It is the largest bank in Kenya and has a market share of about 40%.


The bank offers a wide range of banking services to its customers.

These include savings, loans, mortgages, insurance, and investments.

The bank also offers mobile banking services to its customers.

The company’s shares are listed on the Nairobi Stock Exchange (NSE) under the symbol: EBL.

The stock’s price as of 13/07/2022 is KES 44.80


The bank has grown to become one of the largest banks in East and Central Africa, with subsidiaries across Kenya, Uganda, Tanzania, Rwanda, the DRC, South Sudan, and Burundi.

Why buy Equity Bank shares in Kenya?

Equity Bank has offered its shareholders the biggest capital gain since 2009, with its value up by a factor of 3.62 times.

The bank is the fastest growing bank in Africa. It is a leading banking institution with a strong presence in East Africa. Equity Bank has snowballed by providing its customers with innovative and quality financial products and services.

4. East African Breweries Ltd

The stock price as of 13/07/2022 is KES 139.50


East African Breweries Ltd. (EABL) is a Kenyan-based holding company that manufactures branded beer, spirits, and non-alcoholic beverages.

The company was founded in 1922 by merging two breweries, Tanganyika Breweries Limited and Kenya Breweries Limited.


The company’s brands include Tusker Lager, Safari Malt Beer, Club Premium Lager, Club Light Lager, Club Extra Dry Lager, Club Export Stout, and Club Light Export Stout.

It also produces spirits under the ” Kilimanjaro ” brand name, which includes Kilimanjaro White Whisky and Kilimanjaro Black Label Whisky.


It was founded in 1922, as Kenya Breweries Limited (KBL), by two white settlers, George and Charles Hurst.


The company is the largest brewer in East Africa and has a market share of over 60% in Kenya. It also has a presence in Uganda, Tanzania, Rwanda, South Sudan, and Burundi.
It is listed on the Nairobi Securities Exchange.

Why buy East African Breweries shares in Kenya?

East African Breweries is a well-managed company with a high return on investment and regular dividend payments. The company has been in operation for many years and has a good reputation.

The company produces beers and soft drinks. It also owns the famous Tusker brand, the leading beer in Kenya.

5. Bamburi Cement PLC

The stock price as of 13/07/2022 is KES 35.70


Bamburi Cement PLC is a Kenyan company specializing in producing and marketing cement and construction materials.

It was founded in 1951 by Felix Mandl as a partnership between Cementia Holding and Blue Circle.

The company has been listed on the Nairobi Stock Exchange since 1964. The company’s headquarters are located in Nairobi, Kenya.


It is the largest producer of cement in the East African region. The company has operated for over 50 years and has a solid regional presence.


The company’s stock is listed on the Nairobi Securities Exchange, which trades under BAMCEM.

Conclusion: The Best Stocks to buy in Kenya

There are many ways to invest in stocks, but if you want to be successful at it, you should do your research and have a plan before investing any money.

It is crucial to invest in the right stocks for a successful portfolio.

To help you with this task, we have listed five of the best stocks to buy in Kenya according to their performance over time and their growth potential.

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Reference:

Equity bank – best bank in Kenya for 10 years in a row