Safaricom, East Africa's most profitable telephony company, has been included in the NSE 20 Share index. Its inclusion replaces TPS Serena in the commercial and services sector.

This comes barely a month after it was listed on the Nairobi Stock Exchange contrary to the regulations governing the NSE 20 Share that require a company to have been trading for a minimum of one year prior to its inclusion.

NSE chairman, Mr Jimnah Mbaru, said the board of directors made an exception to Safaricom in light of the significant impact it has occasioned on the market capitalisation and trading activity at the bourse.

"Safaricom's inclusion will enhance the technical and market reflection accuracy of the NSE share index. The changes have been endorsed by the NSE board after due regard to factors of market capitalisation, turnover, shares traded and the liquidity of the respective counters," Mr Mbaru said in a press statement.

Also joining NSE 20 Share index is Equity Bank that replaces Diamond Trust Bank in the finance and investment sector, East African Cables that knocks out Sameer Africa and Athi River Mining which replaces Total Kenya in the industrial and allied sector.

The changes take effect from July 1.