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5 Best Consumer Discretionary Stocks in Kenya

Analyst Team trader
Updated 28 May 2024

Multinational firms are very interested in the retail and distribution prospects available in Africa’s growing economies.

By 2030, it is anticipated that household expenditure will increase to $2.5 trillion, driven in part by changing demographics and a more favourable economic climate across the continent.

It is important to encourage Kenyan business leaders and investors to expand production and distribution in order to fulfil expanding household consumption and demand while overcoming obstacles and generating profitable returns.

Africa’s consumer markets are expanding, and both business owners and governments need to seize this chance and recognize the challenges that consumer-driven innovations may help to solve.

The Nairobi Stock Exchange’s discretionary consumer sector covers goods and services whose demand is heavily income-dependent. The term “sector” is used to refer to a broad range of enterprises, including conventional retailers, manufacturers, and institutions that provide hospitality and food services.

In this article, we examine Kenya’s top five consumer discretionary stocks.

Best Consumer Discretionary Stocks in Kenya to buy right now


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5 Best Consumer Discretionary Stocks in Kenya

1. Car & General Kenya Limited (CGEN)

Overview

Car & General Kenya Limited sells generators, vehicles, tools, and farm machinery. The company sells top-selling bikes, tricycles, tractors, outboard motors, air compressors, washing machines, and water pumps.

Car and General Kenya

Non-Executive Chairman Nicholas Ng'ang'a and Managing Director & Executive Director Vijay Gidoomal lead Car & General Kenya Limited.

The company is the major Cummins distributor in Kenya, Uganda, Tanzania, Rwanda, Ethiopia, Eritrea, Djibouti, Seychelles, South Sudan, and Somalia.

Car & General Kenya Limited diversifies its investments to maximize earnings. Main business divisions are trade and workshop, poultry, and investment properties.

The company sells and repairs power tools, household appliances, agricultural tractors and implements, marine engines, motorbikes, autos, three-wheeled vehicles, commercial laundry equipment, and commercial engines.

Car & General Kenya Limited’s market cap is 1,307,367,841 KES, and its revenue is 12,117,980. On September 9, 2022, shares closed at 33.50 KES on the Nairobi Securities Exchange (NSE), down 4.3% from 35.00 KES.

Car & General Kenya Limited’s recent 6% increase makes it the 17th highest performer on the NSE. The company has a history of growing profits and paying dividends.

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2. Deacons (East Africa) Plc (DCON)

Overview

Deacons (East Africa) Plc, formerly Deacons Kenya Limited, sells clothing and shoes to men, women, and children.

Deacons East Africa

Deacons (East Africa) Plc, based in Kenya, divides its business into Product and Geographic sales, which cover places like Kenya, Uganda, Rwanda, and Tanzania.

Formerly a Marks & Spencer franchisee. Deacons (East Africa) Plc manages franchise and department stores in East Africa that sell women's, men's, and children's clothing, accessories, toiletries, gifts, home furnishings, cosmetics, and sporting goods.

Deacons (East Africa) Plc markets 4u2, Angelo, Mr. Price, Truworths, Babyshop, and Bossini. Mr Price Home sells housewares and kitchen items.

Deacons (East Africa) Plc sells exercise apparel, sportswear, and kitchenware, dinnerware, and dishware.

The company's stock market investment was 55,601,203 KES. Analysts predict the industry to improve and gain market share as trading volumes rise, according to Deacons (East Africa) Plc's chart.

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3. Express Kenya Plc (XPRS)

Overview

Express Kenya Plc offers logistics, warehousing, air and sea freight clearing, and forwarding. The company was founded in 1918 and listed on the NYSE on January 1, 1978.

Express Kenya Plc

Express Kenya Plc's fleet includes trucks, vans, trailers, low loaders (up to 80 tons), side loaders, stainless steel tankers, and forklifts.

Express Kenya Plc manages 50,300 square meters of storage space across numerous warehouses and provides 40,000 square meters of protected, secure space.

Express Kenya Plc's companies include Express Mombasa Limited, Container Services Limited, and Airporter Limited. Etcoville Holdings Limited, Express Kenya Plc's parent company, is a Kenyan economic powerhouse.

Express Kenya Plc delivers freight to all of Kenya's major cities and towns as well as depots in South Sudan, North Sudan, Ethiopia, Uganda, Zambia, Zimbabwe, Tanzania, Rwanda, Burundi, and the DRC.

Express Kenya Plc provides import/export customs paperwork processing, pick-up and delivery coordination, warehouse logistics, pre-shipment inspections, and empty container storage, cleaning, and repair. Express Kenya Plc has a property segment.

The company’s 52-week high was 4.84 KES and its 52-week low was 2.58 KES, reflecting a 3.53% change. This year's growth is 21.8%.

Express Kenya Plc's growing profit margins and per-share earnings mean increased dividends and profits.

Several industry analysts have anticipated that the transportation sector's performance will improve, with market share and trading volumes potentially improving.

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4. Longhorn Publishers Plc (LKL)

Overview

Longhorn Publishers sells books online and in stores. This includes E-books, print textbooks, fiction and nonfiction publications, and university and college materials.

Longhorn Publishers

It publishes, promotes, and distributes intellectual and mainstream literature with offices in Kenya, Uganda, Tanzania, Malawi, and Rwanda.

Longhorn Publishers Plc signed distribution partnerships to expand across Africa and today also include Malawi, Zambia, South Sudan, and Senegal.

Longhorn Publishers is the only Kenyan publisher authorized to distribute textbooks in 12 core subjects for secondary and basic education.

The company also purchased the rights to Sasa Sema Publications Limited's reference books, artistic works, biographies, and general knowledge publications.

According to financial data, Longhorn Publishers Plc's first-half profits were down, but investors who buy or sell now may gain from future dividends, earnings per share, and profits.

Longhorn Publishers Plc's real-time graphic shows that Consumer Services market share will increase as trading volumes climb.

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5. Nairobi Business Ventures Ltd (NBV)

Overview

Nairobi Business Ventures Ltd provides imported leather shoes and accessories under the brand KShoes. Kenya's Nairobi Business Ventures Ltd. was created in March 2012.

Nairobi Business Ventures Ltd

Imported from China and India, they're renamed for Kenya. Six Nairobi Business Ventures Ltd. shoe outlets are located in high-traffic areas.

The company has started creating its own leather items and will add 25 new stores in the next two years.

Nairobi Business Ventures Ltd. shares cost 6.18 KES. At 7.18 P/E and 0.90 KES per share, the company has a 152 million KES market valuation. Shares total 23.6 million.

Nairobi Business Ventures Ltd (NBV) shares declined 9.4 percent from Friday to Monday, closing at 6.18 KES. It made 698,030.00 KES that year.

Nairobi Business Ventures Ltd has a history of profitability and an estimated EPS of 0.90 KES.

The company’s live chart analysis shows analysts expect the consumer services industry to continue its recent upward trend, with market share and trading volumes growing.

Buy This Stock

The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.
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