Benchmark Kenyan shares rose to end the year up 29 per cent, lifted by the banking, telecoms and manufacturing sectors as investors returned in force after the market suffered a torrid 2011.

Analysts said they expected subdued activity on a cautious bourse in the first part of 2013 ahead of the first presidential election since a disputed 2007 poll unleashed deadly ethnic violence.

"Given what happened in 2008 after the elections, there is still a cloud hanging around which might cause some speculative investors to take a back seat," Ronald Lugalia, a research analyst at Africa Investment Bank, said.

The benchmark NSE-20 Share Index finished the day up 0.3 percent at 4,133.02 points, some 40 points off its 2012 high hit on November 11.