Nairobi Stock Exchange is collapsing thanks to RUTO’s insatiable appetite for taxes – See what is happening there

Wednesday, April 3, 2024 – The Nairobi Security Exchange (NSE) may be collapsing as we speak.

This is after it emerged that foreign investors have sold off equities worth KSh2.3 billion, demonstrating their continued exodus from NSE.

This pattern points to a lack of trust in the Kenyan market, although local equities have been showing a gradual performance improvement.

According to reports, foreign investors' portfolio flows were negative for the first three months of 2024, with the largest selloff, at KSh1.2 billion, occurring in March.

Investors withdrew KSh106 million and KSh1 billion from the market in January and February, respectively.

Reports intimated that the ongoing exodus of foreign investors has been associated with a discrepancy in returns, whereby investments made in developed economies provide higher returns than those made in emerging and frontier economies such as Kenya due  to significant interest rate hikes.

Speaking during an interview, lead financial analyst Rufas Kamau highlighted rising energy costs and taxation as reasons why foreign businesses were closing their doors.

He noted that multinational corporations left the Kenyan market due to low consumer demand, high borrowing rates, and high fuel costs.

"The super-rich people find comfort in a country with a stable taxation policy, a stable currency, and a growing economy," Kamau said.


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