Foreign investors moved a record $290 million out of Nairobi to the US in 2018

Kenya's capital, Nairobi City
  • Foreign investors made record net sales of Sh29 billion from the Nairobi Securities Exchange (NSE) last year.
  • Most of the capital outflow in the net outflow column was centred on the large blue chips.
  • The US Federal Reserve has been raising its benchmark rates, causing global investors to move cash from the frontier and emerging markets to the developed markets.

A record Sh29 billion ($290 million) was moved out of Kenya in 2018.

According to market data compiled by Standard Investment Bank, foreign investors made record net sales of Sh29 billion from the Nairobi Securities Exchange (NSE) last year as the market was caught up in global capital flight back to the US.

The US Federal Reserve has been raising its benchmark rates, causing global investors to move cash from the frontier and emerging markets to the developed markets.

We expect the market to remain subdued in the near-term as international investors exit the broader emerging markets due to the expectation of rising US interest rates, coupled with the strengthening of the US dollar,” says Cytonn Investments in its latest market report.

Most of the capital outflow in the net outflow column, which is led by Safaricom at Sh13.7 billion, was centred on the large blue chips which are the favourite of foreigners due to their high liquidity that supports large ticket trades the SIB data shows.

The NSE has also been affected by falling share price valuations, which has negatively affected the dollar returns for investors — given that the shilling has remained largely stable against the greenback — causing investors to try book their gains and seek alternative investments.

Equity turnover stood at Sh175 billion last year having gone up by 2.4 per cent from Sh171 billion in 2017.

Foreign participation as a percentage of traded turnover at the bourse, however, remained unchanged year-on-year at 63 per cent.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022