Foreign investors, who pulled back sharply in earlier years due to currency weakness and political risk, have been cautiously rebuilding positions on the Nairobi bourse, contributing to improved liquidity and price discovery. Weekly trading data still show periods of net selling as global risk sentiment shifts, but overall foreign participation is stronger than in the trough years, helping support valuations in key counters.
Thank you for reading this post, don't forget to subscribe!At the same time, falling returns on government securities and money-market instruments have encouraged local institutions and retail savers to rotate into equities and higher-beta assets, amplifying the rally. Research houses caution that this renewed risk appetite remains highly sensitive to macro factors—fiscal consolidation, debt sustainability, exchange-rate stability and the interest-rate path—making the quality and durability of flows a defining capital-markets story as the new year begins.
