Zamara Kenya Equity Index (KES)

The Zamara Kenya Equity Index (ZKEI), ticker ^ZKEQTK, is a financial benchmark designed to reflect the performance of Kenya's investable equity market. It tracks stocks listed on the Nairobi Securities Exchange (NSE) that meet specific liquidity and size criteria, including a free float market capitalization exceeding KES 5 billion (approximately $50 million) and an average daily value traded over six months greater than $50,000. As a total return index, it incorporates both price movements and reinvested dividend income, with versions available in Kenya Shillings (KES) and US dollars; a price return variant also exists.

Launched on July 9, 2018, by Zamara, a pension fund administrator, in partnership with the NSE and S&P Dow Jones Indices, the index uses a modified market capitalization weighting method. Stocks are capped at 20% of the index to mitigate concentration risk, with annual rebalancing in April and end-of-day calculations. Its first value date is December 31, 2012, providing a historical benchmark for performance analysis.

The index serves as an effective tool for institutional investors, such as pension funds and insurance companies, offering a reliable measure of market performance amid challenges like thin trading and liquidity issues on the NSE. It has been utilized in investor training and actuarial surveys to compare equity returns against benchmarks like the NSE All-Share Index (NASI).