After a four-year break, BlackRock, one of the biggest asset management companies in the world, has returned to the Nairobi Securities Exchange (NSE), marking a significant victory for the Kenyan exchange that is rebounding from its worst year ever. Central Bank of Kenya (CBK) governor Kamau Thugge disclosed to bankers that he had a meeting with officials of the American multinational that manages $9.1 trillion (KSh 1.2 quadrillion) in assets this month. Thugge revealed that the executives had chosen Kenya as one of the ten economies in which to invest in. “The other day, I met BlackRock Asset Managers. They came to my office and wanted to know how the economy was doing. They said they had kept away from Africa for the last four years, but now they had identified 10 countries globally where they think they can start investing,” Thugge said, as quoted by Business Daily. “Blackrock actually made an investment into the equities, and if you are keen and have been looking at what’s happening in the stock market, you can actually start to see it has been going up,” he added. How NSE rebounded On Monday, March 25, NSE revealed it recorded the highest single-day turnover in 2024 of KSh 3 billion on a volume of 141 million shares. Speaking to TUKO.co.ke, FX Pesa lead market analyst Rufas Kamau said the entry of Blackrock into Kenya was an indicator that global investors were rotating towards the frontier and emerging markets. “It’s a welcome boost of confidence that will encourage other investors to invest in Kenya. This could significantly boost foreign direct investments and shore up our foreign currency reserves,” Kamau observed. How NSE underperformed in 2023 NSE closed the last day of 2023 with a valuation of KSh 1.439 trillion, down from KSh 1.986 trillion at the end of 2022. The drop in wealth, amounting to a whopping KSh 547 billion, rattled investors. During the nine months ending in September 2023, 6,256 foreign investors exited the Nairobi Securities Exchange.
by Japhet Ruto