Foreign portfolio investments in Kenya have more than doubled in the past year, reaching Sh6.4 billion ($49.5 million) as of June. This increase signals a positive outlook from foreign investors, reflecting growing confidence in Kenya’s economic potential. Analysts attribute the improvement to factors such as a rebound in investor sentiment, favorable market conditions, and the Central Bank of Kenya’s interventions.
Previously, Kenya had experienced negative investor sentiment due to economic challenges like a weak currency and high inflation. However, the situation has changed, with investors now showing interest in Kenyan assets. Data from the Central Bank of Kenya indicates a steady rise in foreign portfolio investments since last year, with positive growth trends in the Nairobi Securities Exchange and other capital markets.
Despite challenges faced in the past, Kenya’s investment landscape is showing promise, attracting foreign investors seeking higher returns. The country’s stock market performance has been robust, outperforming other markets in Africa. This positive momentum suggests a bright outlook for Kenya’s investment climate in the short term.
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