A Comparative Study of the Returns of Quoted Sin and Non Sin Stocks at the Nairobi Securities Exchange


  • Paul Gachoki Njeru The Nairobi University
  • Dr. Herrick Ondigo The University of Nairobi


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non-sin stocks, sin stocks, Local Government


Purpose: The purpose of the study was to compare returns of quoted sin and non-sin stocks at the Nairobi Securities Exchange. The major objective of the study was to establish whether stock returns of sin stocks outperform non sin stocks.

Methodology: The study used explanatory research design with the population consisting of all firms listed in the NSE. The sample of the study consisted of the top 20 NSE firms. The study grouped 18 firms into the non-sin stock category and another 2 firms (BAT ad EABL) into the sin stock category. Secondary data sources were used in gathering data for analysis which was done using the Statistical Package for Social Sciences (SPSS version 20) to generate the descriptive statistics and also to generate inferential results.

Results: The study found out that sin stocks have higher capital gains, high expected return and dividends than in non-sin stocks

Unique contribution to theory, practice and policy:  The study recommended that Sin stocks have higher expected returns than comparable stocks; however, neglected they are by norm constrained investors. Therefore, investors should split their investment in sin stock and non-sin stocks.


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Author Biographies

Paul Gachoki Njeru, The Nairobi University

Post Graduate Student

Dr. Herrick Ondigo, The University of Nairobi



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How to Cite

Njeru, P. G., & Ondigo, D. H. (2017). A Comparative Study of the Returns of Quoted Sin and Non Sin Stocks at the Nairobi Securities Exchange. International Journal of Finance and Accounting, 2(2), 85–106. https://doi.org/10.47604/ijfa.314