These are some of the ten best shares to buy in Kenya today and hold for years to come. As you all know, a stock market is a volatile place, but with the right shares, you can grow your wealth steadily over time.
However, with hundreds of stocks to choose from, it’s hard to know the best investments.
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 shares to buy today and hold for years to come.
You may also read; Buying Shares in Kenya.
To ensure no overlap among companies on our list, we’ve only selected one stock per sector, 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:
1. An excellent track record in terms of profitability and growth.
2. Strong competitive advantages — barriers that prevent or limit competition from encroaching on their business.
3. A strong balance sheet — a financial fortress with plenty of cash and very little debt.
4. Relatively low levels of institutional ownership — shareholders who benefit from broad diversification.
5. 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.
6. Steady or rising dividends over time.
List of Shares to Buy in Kenya in 2021
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 as measured by subscriber base, service coverage, and revenue market share with more than 38 million subscribers as of March 2017.
This company offers you the highest returns in the long run, and it has a payout ratio of over 100%.
The best thing about owning shares in this telecommunications giant is that you can expect huge dividends every year without having any fear of 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, which makes 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 consistency in 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 as well.
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 now, and it 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 every year since 2008, which makes it a good investment for your portfolio.
The best thing about owning shares in Unilever PLC is that you can receive big dividends every year without having any fear of 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 more than seven years now, and it has a dividend yield of over 10%.
Bamburi Cement company is one of the most recommended companies to buy because it’s not only good at increasing its revenue, but it also distributes its profits to shareholders every year.
7. Shares to Buy in Kenya – KenGen
KenGen is involved in the generation, transmission, distribution, and sale of 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 banking, insurance, asset management, stockbroking, and investments services to retail and corporate clients.
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 as well.
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 any fear of 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 through retail banking, commercial banking, treasury services, and investments divisions in its various markets.
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 thinking about growth and stability.