These are some of the best shares to buy in Kenya today and hold for years. As you all know, a stock market is volatile, but you can grow your wealth steadily over time with the right shares.
However, knowing the best investments with hundreds of stocks is hard. We’ve identified ten great companies that have consistently grown their sales and profits since first listed on Nairobi Security Exchange or began paying dividends.
They’re the best stocks to invest in Kenya and hold for years.
You may also read; Buying Shares in Kenya.
We’ve only selected one stock per sector to ensure no overlap among companies on our list, except where noted.
We also want stocks with a long-term track record; thus, no newly public companies are included here.
To be sure we’re looking at companies with a solid foundation, we also want them to have the following:
- An excellent track record in terms of profitability and growth.
- Competitive solid advantages — barriers preventing or limiting competition from encroaching on their business.
- A strong balance sheet is a financial fortress with plenty of cash and little debt.
- Relatively low institutional ownership levels—shareholders benefit from broad diversification.
- Reasonable valuations concerning earnings, sales, and book value per share, which you can learn about using our interactive Earnings, Sales, and Book Value Per Share widgets.
- Steady or rising dividends over time.
- Current NSE share prices.
List of Best Shares to Buy in Kenya
Here are the best shares to buy in Kenya at the moment:
1. Safaricom PLC – “A big investment.”
Safaricom is a leading provider of telecommunications services in Kenya. It’s the largest mobile network operator measured by subscriber base, service coverage, and revenue market share, with more than 42 million subscribers.
The Safaricom share price offers you the highest returns in the long run and has a payout ratio of over 100%. The best thing about owning Safaricom shares in this telecommunications giant is that you can expect huge dividends yearly without fearing losing much capital due to stock market crashes.
It’s probably best to invest big if you can because it will give you huge returns in the future.
2. Kakuzi PLC – “Great for holding”
Kakuzi PLC is an agricultural production and processing firm based in Kenya and listed on the Nairobi Stock Exchange. It has been paying dividends since 2008, making it suitable for any portfolio.
The best thing about Kakuzi PLC is that it offers you double-digit returns in the long run and almost zero tax to pay on your dividends received every year.
You can probably buy a share in Kakuzi PLC and hold onto it for months, years, or even decades because of its consistently increasing dividends every year since 2008.
3. Kenya Reinsurance Corporation – “Good dividends and growth.”
Kenya Reinsurance Corporation PLC (KRC) is the country’s largest reinsurer. It offers property, marine, aviation, and motor insurance products to corporate and retail customers in Kenya.
The company operates as a subsidiary of Knight Lloyd Insurance Holdings Ltd., an insurance holding company based in Nairobi, Kenya.
One of the best companies to invest in is Kenya Re which offers you great returns. It also provides a dividend yield of over 10%.
The company has been growing its net profits for more than ten years now, and there’s no doubt that it will continue to do so in the future.
4. Kenya Commercial Bank Group PLC – “One of the best.”
Kenya Commercial Bank Group PLC operates as a financial services provider in East Africa, the Indian Ocean Islands, and Madagascar.
It provides commercial banking services to large corporations, small to medium enterprises, wholesale companies, and individuals in Uganda, Tanzania, Rwanda, Burundi, the Democratic Republic of Congo, and South Sudan.
This bank has been paying dividends for over 20 years and has a dividend yield of about 9.5%. KCB GROUP also pays out more than 50% of its profits to shareholders every year.
It’s probably best to invest in this bank and forget about it because you can be sure that your money will multiply. After all, dividends are paid out twice a year.
You may also like the Investment Opportunities in Kenya.
5. Unilever Kenya PLC – “Strong performance.”
Unilever is a multinational consumer goods company that produces foods, beverages, cleaning agents, personal care products, and skin- and hair-care products. It operates in over 100 countries with some 170,000 employees.
It has been growing its revenue yearly since 2008, making it a good investment for your portfolio.
The best thing about owning shares in Unilever PLC is receiving big dividends yearly without fearing losing capital due to stock market crashes.
Unilever PLC is a big company, so it will continue to grow as long as the world continues buying its products, especially in emerging markets such as Kenya.
Also, read Best Money Market Fund in Kenya.
6. Bamburi Cement PLC – “One of the best.”
Bamburi Cement PLC is a producer and distributor of Portland cement, quicklime, and hydrated lime.
The company operates as a subsidiary of LafargeHolcim Ltd., one of the largest building materials producers globally. And has been paying dividends for over seven years and has a dividend yield of over 10%.
Bamburi Cement company is one of the most recommended companies because it’s good at increasing its revenue, but it also distributes its profits to shareholders yearly.
7. Shares to Buy in Kenya – KenGen
KenGen is involved in generating, distributing, distributing, and selling electricity in Kenya. And has an interest in the Kenyan renewable energy sector with interests in geothermal, wind, and solar power projects across East Africa.
It generates over 95% of all electricity produced in Kenya and sells its entire output to Kenya Power & Lighting Company PLC, the largest distributor of electricity in the country.
See also; List of Registered Stockbrokers in Kenya.
8. Shares to Buy in Kenya – Jubilee Holdings PLC
Jubilee Holdings Limited is a Kenya-based integrated financial services company. It offers retail and corporate clients banking, insurance, asset management, stockbroking, and investment services.
The company pays a dividend of about 8.9%, making it one of Kenya’s best investments. It has been paying dividends every year since 2013, and there’s no doubt that this will continue in the future.
Even though Jubilee Holdings is not a safe bet, it offers you great returns within an extended period.
9. East Africa Breweries Ltd (EABL) – “Good for dividend returns.”
East Africa Breweries Ltd (EABL) is the largest brewer in Kenya by volume. It produces Tusker beer, Senator Keg, and East African Breweries Ltd (EABL) Export lager, among other brands.
East Africa Breweries Ltd is a listed company on the Nairobi Stock Exchange. It’s an excellent choice to buy its stocks and hold onto them because it offers you an excellent dividend yield of over 10%.
The best thing about owning shares in East Africa Breweries Ltd is that you will receive your money every time without fearing losing much capital due to stock market crashes.
10. Shares to Buy in Kenya – Equity Bank PLC – “A bank that pays dividends.”
Equity Group Holdings Limited is Kenya’s leading banking group with over Ksh 3 trillion in assets. Its investment arm, Equity Group Investments Limited, is responsible for managing its investments in different sectors of the Kenyan economy.
The group has subsidiaries in Kenya, Mauritius, Rwanda, South Sudan, Uganda, and Tanzania.
It operates in various markets through retail banking, commercial banking, treasury services, and investment divisions.
This bank has offered you great dividends every year since it started paying them in 2007, making it one of the best companies to invest in when considering growth and stability.