In multi-year selloffs, foreign investors have sold nearly four billion Nairobi Stock Exchange (NSE) shares, making the stock market more volatile and driving down prices.
Three years in a row of net foreign portfolio outflows have corresponded with lower foreign ownership in NSE-listed stocks.
Foreigners have chosen to limit their losses now rather than later in case the foreign exchange problems are worse due to the acute dollar shortages and the steep depreciation of the local currency in the year to date.
Even dividends on stocks like BAT and Safaricom have been selected to be left on the table by foreign investors.
Analysts claim that because of the advent of foreign exchange problems, Kenya has missed out on recovering international investment flows to frontier and emerging markets.