The Nairobi Securities Exchange (NSE) saw a steady decline in foreign investor participation to a record low of 30.1 percent in March, trading shares worth Sh19.5 billion and forcing the exchange to rely on domestic investors with lower purchasing power.
The value of all equities listed on the NSE fell by Sh13.3 billion, reaching a six-year low of Sh1.67 trillion.
According to the Morgan Stanley Capital International (MSCI) Kenya Index, the NSE as a whole had the lowest dollar returns among African peers in the first quarter that ended in March, returning a minus 20.2%.
According to analysts, the largest barrier to attracting foreign investors back to the exchange, where indigenous institutions and Kenyan ordinary investors have limited sway, is the lack of dollars. The foreign investor flight and falling share prices come despite record corporate earnings and dividends, underlining the apathy seen at the bourse.
