The study looked at how different economic factors affect stock market returns in Nairobi. They used data from 20 companies in the Nairobi Stock Exchange from 2006 to 2010. The results showed that market returns, exchange rates, and market to book value ratio have a positive impact on stock returns. The risk-free rate and industrial growth opportunity also play a role. However, inflation and leverage can have a negative impact. These findings can help investors make better decisions and guide government policies to promote economic growth through the capital market.