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As of June, such investments hit Sh6.4 billion (USD 49.5 million), a 121 percent rise from the negative value of Sh32.6 billion (USD 233.4 million) in June last year, the latest data from the Central Bank of Kenya (CBK) shows.
Foreigners’ portfolio investments in Kenya more than doubled in the 12 months to June this year, reflecting an improving investor sentiment about the country.
Portfolio investment liabilities are assets such as stocks, government or corporate bonds, and other financial instruments held by foreign nationals in Kenya, and generally reflect the country’s attractiveness to overseas investors.
As of June, such investments hit Sh6.4 billion (USD 49.5 million), a 121 percent rise from the negative value of Sh32.6 billion (USD 233.4 million) in June last year, the latest data from the Central Bank of Kenya (CBK) shows.
Experts say this is a sign of improving investor confidence in the Kenyan market, and an indication that the country’s economic situation appears promising to far-away investors, at least in the short-term.
Kenya’s portfolio investment liabilities have been in the negative zone since June 2022, when the United States Federal Reserve rate rise caused a rapid appreciation of the dollar and an outflow of investments from several emerging and frontier markets like Kenya.
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This meant that the total value of financial assets held by foreigners in the country was much less than those held by Kenyans overseas, an indication of negative investor sentiment.
