Best Companies to Buy Shares in Kenya

Here is a list of the Best Companies to Buy Shares in Kenya, with long-term returns for investors and business people. Let’s break down these top-tier stocks with reasons to invest in them based on sustainability to generate profits, dividends, and much more.

1. Safaricom

Safaricom is currently the largest network provider in Kenya, with over 38 million subscribers. Although it is a public liability in the form of data, SMS, and other services, you can convert it into an asset that will skyrocket your wealth.

Safaricom’s dividends drastically increased from 0.10% in 2009 to 1.70% per share as of 2021. It is doubtless that buying stocks in this big and fast-growing company will boost your sales.

Here’s how you benefit from Safaricom as an investor:

• High competitive advantage in the marketplace
• Broad diversification due to minimal institutional ownership
• Increasing dividends over time

A solid track of financial increments and profitability makes Safaricom a good stock to buy, particularly for long-term investors.

2. Equity Bank PLC

Equity Bank is among the largest banks in Kenya and continues to provide useful insight into the insurance, investment, and banking industry at large.

Managing various sectors in the Kenyan economy, the bank has gained assets of over 3 trillion with great returns to its stock buyers.

It offers great dividends for growth and sustainability to investors who seek dominance in the banking sector.

In addition, the Equity group has extended its banking services across East Africa and other countries such as Tanzania, South Sudan, Uganda, and Mauritius.

Therefore, buying stocks in Equity is worth it and necessary for financial growth. Its 29% growth from customer deposits of 1.015 trillion to 1.305 trillion indicates Equity is a great stock to buy.

3. Kenya Power & Lighting Company (KPLC)

While KPLC is famous for its distribution of electric power all over the country, it can be a good place to buy stocks.

Although the government owns KPLC, there’s still room for investment as you buy stocks. The Kenyan government only holds 50.1% of the shares, while 49.9% is in the hands of private shareholders.

KPLC has been experiencing financial setbacks and losses at some point, but that happens to all businesses. It is a good option if you look forward to long-term stock investments.

KPLC posted a Ksh 1.5 billion profit in the 2020/2021 financial year, giving more opportunities to people who had bought stocks.

4. Nation Media Group

This platform has been great in the entertainment industry for decades and remains at the top despite the setbacks.

While some stock companies such as Britam Holdings may not Pat dividends regularly, Nation Media Group pays regular dividends.

In fact, the Nation Media Group paid dividends worth Ksh 6 billion in 2019. Although the shares per stock may not be high, it is a good starting point if you want something affordable with a longer-term return.

It can turn your shares into assets. Currently, NMG has several communication services, both in print and non-print form.

Nationwide newspapers such as Taifa Leo and Television stations such as NTV are under Nation Media. It also partners with many radio stations countrywide.

You won’t go wrong by buying stocks in Nation Media Group. Most investors have not realized its full growth potential, and taking chances professionally pays off in the long run.

5. Diamond Trust Bank (DTB)

Diamond Trust Bank is among the most profitable stocks on the Nairobi Securities Exchange (NSE), with a net worth of Ksh 14.5 billion.

This contributes to about 0.767% of the NSE market value. This banking platform is a good stock because it deals with most financial services around the East African region.

For instance, it offers debit cards, credit cards, insurance, investments, and financial transfers. DTB has expanded its admirable services beyond the Kenyan borders and penetrated Burundi, Tanzania, and Uganda. Kenya is the leading with 36 branches countrywide.

Based on its growth and evaluation, it has 280M outstanding shares with Ksh 13.8 earnings per share in June 2022.

The reason you should consider DTB as part of your stock’s portfolio is the fact that it has a high traded volume with significant growth in its performance.

6. KenGen

The Kenya Electricity Generating Company (KenGen) PLC is notably the largest electricity supplier in Kenya.

KenGen has maintained sustainability in its growth path as it increases profitability to its investors. The company is also the leading generator of electric power in East Africa and supplies electricity to KPLC.

KenGen is worth it if you look forward to investing in energy-related resources and power supply as far as geothermal energy is concerned.

Besides geothermal, it also produces energy from wind, hydro and thermal. KenGen is part of the NSE with Ksh 0.18 earnings per share and an earning ratio of Ksh 18.94 as of June 2022.

With a marketing capitalization of Ksh 22.5 billion and outstanding shares of Ksh 6.59 billion, KenGen is good for stock buying.

The traded volume was 80,000 as of June 2022, but it always goes high. Investing in KenGen is worth it if you look forward to seeing great returns in the future.

In addition, KenGen has more plans to expand the power supply by setting up various projects in the country. It is a hope to all stock buyers that they will have a bright financial breakthrough by choosing KenGen.

Conclusion

While there are many Companies to buy shares in Kenya, always look out for companies that give regular dividends, and have a highly competitive advantage and good returns. The traded volume and consistency producing profits are equally important in deciding the best stocks to buy.