Best Stocks to Invest in Kenya in 2020

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Investing in stocks in Kenya is one of the profitable ways to grow your money and gain financial freedom. Although many people shy away from stock investment because they have not fully understood the idea behind it, the stock remains one of the lucrative ways to obtain financial stability.

Analyst believed 2020 would have been the best year when compared to 2019. However, due to the pandemic that has affected both local and global markets, companies have somehow been shaken.

If you look at the Nairobi Securities Exchange (NSE) stock prices, you will notice the business in buying stocks is just as normal as nothing happened. You may also wonder which is the best stock to buy or which stock will truly excel in 2020. And that is what this article is about.

Knowing the performance of stocks, the market price, and the amount of dividend that a company pay can help decide on the best stock to purchase. Here are the top 10 companies you can invest in 2020.

Are you ready to know them and analyze them?

Safaricom

The company has been at the peak for quite a while due to its services, which run from internet provision to M-Pesa services to its converged business solutions, among others. The company’s accumulated revenue for the last three years has been progressively increasing.

The share price in 52 weeks has been on a rage of Sh23.50-Sh33.50. At the time this was being written, the company had a volume of 9.71M shares traded, which is the highest volume on the NSE stock market. Its current price per share is Sh28.50, while its capitalization stands at 1.14M.

In April, Safaricom announced a dividend payment of Sh 1.40 for every share owned by its shareholders.

Safaricom Share Price Data; Source, MyStocks Live

KCB Group Limited

KCB is the leading asset-based bank in the region with an average of half a Trillion Kenya shilling. The wide availability of assets gives the bank an added advantage over its peer and enables its leverage on the possible alliance in the banking industry.

The range of share price for 52 weeks has been Sh 33.75- Sh 55.50. Its current market price per share is Sh 37.00, while the turnover stands at 54.20M from 101 equity deals. The bank has an average volume of 1.46M traded shares.

KCB announced an interim dividend of Sh 1.00 last year in November. 

KCB Share Price; Source, MyStocks Live

Equity Group Holdings

Equity Bank has differentiated itself as a front-runner in the innovation and adoption of technology in running its operations. It has invested in developing agency banking, which has seen it increase transactions at agents more than in Branch and ATM. Equity is also expanding the market by focusing on Corporates and SME’s.

Equity holdings have been selling their shares at a range of Sh 32.15-Sh 55.00 in the last 52 weeks. Currently, the turnover stands at 40.63M for just 83 deals. Its volume for traded share is 1.08M while its price per share is Sh 37.65 which is a gain of 2.31%

Last month Equity announced it would pay Sh 2.50 as dividend to its shareholders.

Equity Bank Holdings Change in Share Price; Source Stockdio

East African Breweries Limited (EABL)

EABL deals with the brewing, manufacturing, and trade of beverages. The company focuses on increasing operating productivity across its functions and investments. However, one challenge faced by EABL is its intense competition from Keroche Breweries and London Distillers.

EABL has been on an average of Sh 135.00 and 224.75 on a range of 52 weeks. Currently, its volume for the total shares traded is 91,100, while its market turnover stands at 15.47M. Its stock was at Sh 161.25 before raising to Sh 172.75, which is a +7.13% gain. 

The company announced Sh 3.00 for every share owned by its shareholders in late February.

EABL Share Price; Source, Stockdio

British American Tobacco (BAT)

BAT entails manufacturing and marketing tobacco and related products. BAT has been able to succeed over the years due to its immense investment in Research and development.

The company has been selling its share on a range of Sh 320 to Sh 545.00 over 52 weeks. The turnover touches 8K while the volume of shares traded at the time this was being written was 2,500.  The previous share price is Sh 329.50, while the current is Sh 320.00, which is a drop of -2.88%. 

BAT announced in March that it would pay Sh 30.00 as the final dividend to its investors.

BAT Share Price; Source, Stockdio

Williamson Tea

The company engages in the production and trade of tea as well as growing business. It also deals with property investment and the sale of generators through its branches.

Williamson Tea has been trading at Sh 92.00 – Sh 165.00 on a 52-week range. Currently, its volume of traded shares is 2,400, while the current market price as per the end of 02 May is Sh 115.00.

Williamson Tea Holding; Source Stockdio

Kakuzi (KUKZ)

Kakuzi has adopted an approach to the continued focus on a mixed agricultural portfolio to moderate the profit cycle risk, which primarily affects agriculture. The company’s main business is in the production of tea, macadamia nuts, and avocadoes, as well as engage in forestry activities.

In 52 weeks, Kakuzi has traded its share at Sh 300.00 to Sh 423.50. Its current price-(the time the article was being written) 400 shares were sold for Sh 341.00, which is a gain of 10% from the previous price of Sh 310.

Late April (30th), Kakuzi announced to pay its investors a dividend of Sh 14.00 per every share owned.

Kakuzi Holdings Share Price; Source, Stockdio

Centum Investment Company Ltd (CTUM)

Centum deals with real estate, private equity, and quoted stake in East Africa. The company, through its subsidiaries, manufactures, distills, imports, and distributes both alcoholic and non-alcoholic drinks. Also, it is the first company to be listed by NSE with a bank as a subsidiary.

Centum, on a range of 52 weeks has traded its share for Sh 19.60 to Sh 35.30. Currently, it has traded 23,000 shares with an average of Sh 25.15 per share, which is gain from its previous Sh 23.90 per share.

Centum Share Price; Source, Stockdio

CIC Insurance Group Ltd (CIC)

The company provides general group life and individual life insurance services. Its expansion plans are to enter new markets such as the East and Central parts of the continent, such as Tanzania, Rwanda, and South Sudan. CIC performance has seen it join the NSE 20 shares index, which categorizes the company as a blue-chip.

On a range of 52 weeks, the company has traded its share for Sh 2.00 to Sh 3.89. The current market price on NSE is Sh 2.26, which has seen the company trade 58, 300 shares today.

CIC Insurance Share Price; Source Stockdio

ABSA Bank Kenya

Absa bank Kenya is a commercial bank that offers financial services. The bank provides various solutions such as personal banking, corporate banking, credit cards, wealth, and investment management to its users all across Kenya.

Absa Bank Kenya has been selling its share at Sh 9.30 to Sh 14.20 for an average of 52 weeks. Its current market price at the time of writing this article was Sh 10.55, which has seen it trade 947,300 shares. 

As announced in March, shareholders in Absa bank will be paid Sh 0.90 per share.

ABSA Share Price; Source,Stockdio

There you have it for the best stock to invest in 2020. What are you waiting for? Go ahead and choose the company of your preference and start investing!

Do you need advice on stock selection; Email us today info@finsolutions.co.ke

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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