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Kenya's Nairobi Securities Exchange Enhances Capital Repatriation, Boosting Investor Confidence

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louis Buyisiwe

Apr 3, 2024

Financial Times and Stock Exchange (FTSE)

The NSE said that it has cleared reported delays in its ability to facilitate the investors to repatriate capital from Kenya, enabling it to receive an upgrade on its classification from "restricted" to "pass" by the Financial Times and Stock Exchange (FTSE) Russell Index Governance Board.
Kenya's Nairobi Securities Exchange (NSE) on Tuesday said it has made it easy for institutional investors to repatriate capital from the country

In a significant move to boost investor confidence, the Nairobi Securities Exchange (NSE) in Kenya has streamlined the process for institutional investors to repatriate capital. This pivotal development led to the lifting of the "restricted" status previously imposed on the NSE, with the Financial Times and Stock Exchange (FTSE) Russell Index Governance Board now classifying it as "pass."

David Wainaina, the Acting Chief Executive of the NSE, expressed enthusiasm over the reclassification, emphasizing its reflection of the ongoing enhancements within Kenya's equity market. This change is also seen as a vote of confidence from the international investment community in the Kenyan market's potential.

We are delighted by the reclassification, which is a testament to the continued improvement in Kenya's equity market and a demonstration of the confidence international institutional investors are placing in our market," NSE Acting Chief Executive David Wainaina said in a statement issued in the Kenyan capital Nairobi.

This update comes against the backdrop of a challenging year for the NSE, marked by a bearish trend and a notable withdrawal of foreign investors.

These outflows had led to a reduction in market capitalization, from a high of $15.1 billion at the end of 2022 to $13.6 billion, underscoring the timely nature of the NSE's new measures to facilitate smoother capital movement.

The FTSE Russell's equity indexes, a global benchmark for investors, play a crucial role in guiding asset allocation, portfolio construction, and risk analysis. The NSE's upgraded status is expected to rekindle interest and investment in Kenya's equity market, paving the way for a more vibrant and investor-friendly ecosystem.

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