The Safaricom Ziidi Trader has given the NSE a breath of fresh air by lowering transaction costs to 1.52% for Wanjiku and providing a seamless mpesa to NSE market transition in shares trading. This has attracted alot of newbies (Wanjikus) to the NSE the effect of which is a daily 1.7-2% NSE indices rise since Tuesday when the Ziidi Trader was launched.
Many shares are now approaching fair value after years of undervaluation hence a need for more calculations and wisdom when picking what to dive into.
Wanjiku Corner (and my X handle : stocksmaster79) will be the place for periodic stock picks for 2026 as we navigate this bull run and guide Wanjiku on reasonable picks that will preserve capital and grow wealth.

Based on current prices, I start 2026 Wanjiku Corner with three picks for the Feb-March 2026 Reporting season.

1. BAT
Currently trading at Ksh 495-500 range, the 2026 results should be announced within the next two weeks. I am expecting an earnings per share of about Ksh 55-60 and a final dividend of Ksh 45-50. That's a potential 10% dividend yield on current share price, the only stock currently with such a potential return of double digit dividend yield. Should the results come out as expected, the share should hit 540 range by March.

2. NCBA
Currently trading at Ksh 89-90 range. The Nedbank offer on the table is Ksh 105 for Wanjiku (those holding less than 9400 NCBA shares). That's already a 15% net gain. Then add the 2025 final dividends (to be announced in March 2026) and 2026 interim dividend (August 2026 before deal closure). If the dividends are to be given in parity to Nedbank dividend payout rate of 57-61%, that's a potential dividend of about 0.6 x 14 = Ksh 8. As such, NCBA at current prices will deliver capital gains of Ksh 15 from buy out price and a potential Ksh 7-8 in dividends within a 6 months window (deal slated for closure in Q3 2026). That's Ksh 22-23 (almost a 25% return within 6 months). Their also exists a remote potential for a bidding war btw Nedbank and Standard Bank for NCBA should bank regulator refuse the 66% shareholding proposal and prefer 100% acquisition.

3. KPLC
Trading at a share price range of Ksh 18-18.4, the share is still grossly undervalued based on an EPS of Ksh 12, hence a Price per earning of just 1.5. The negative working capital has also come down to only about 12.5 bn ,(from 75bn five years ago). KPLC is undervalued based on all metrics (price to book value, p/e). It has raised interim dividend by 50% indicating a likely trend for final year dividend in Sept and is currently trading cum dividend. Based on its current dividend payout of less than 9% of net profit, as it wipes out the negative working capital, it has alot of leg room to boost dividend yields going forward. KPLC is a share whose price can double from the current price and still not be overpriced especially when compared to its soon to be listed energy counter mate KPC. Just like KPC, KPLC is asset rich and a monopoly.

Happy Hunting