Nairobi Securities Exchange responds to report naming Kenya a worst performer in stock market

In an October 2 publication, Bloomberg reported that “Kenyan stocks are extending a selloff that’s taken the country’s benchmark index to the steepest losses in the world.”

It said KCB Group PLC capped the biggest losses, losing almost 30% during the quarter, due to bad loans that have hurt investor confidence. 

In a response on October 4, NSE said the article did not provide a holistic view of Kenya’s public capital markets. 

It stated that the article focused only on the NSE all-share Index, failing to consider other factors such as float adjustments, dividend yields and comparative peer market reviews. 

NSE added that despite its share index being affected by the global macro-economic factors, its cumulative equity market activity for first half of year 2023 displayed a 9% increase compared to the same period in 2022.

“Kenya's fixed income securities market has experienced significant growth. The monthly value of bonds traded at the NSE reached a two-year high in September 2023. In addition, the market also recorded a historical single day high trading of Ksh.165 billion worth of fixed income trades in the same month. This surge in fixed income trading activity underscores the depth and potential of Kenya's capital markets, extending beyond equities, “NSE said in its statement, adding that it is among leading exchanges in Afica today. 

“Kenya's markets have demonstrated resilience, and even amidst challenges, they remain open to investors seeking value. We encourage investors to take advantage of the current attractive valuations that the markets present.”