US INVESTORS SLASH KENYAN EQUITY HOLDINGS BY 87 PERCENT IN THREE YEARS

US investors have drastically cut their exposure to Kenyan stocks, with holdings plunging by 87 percent in just three years, new data shows.
According to figures from the US Department of the Treasury and the Federal Reserve, American ownership of equities listed on the Nairobi Securities Exchange (NSE) dropped from KSh112 billion at the end of 2021 to only KSh14.5 billion by December 2024.
The pullback underscores waning confidence in Kenya’s equities market, which has faced sustained foreign investor exits, currency pressures, and underperformance of blue-chip counters.
Despite the sharp fall in stock holdings, total US portfolio investment in Kenya edged up slightly in 2024, rising to US$1.374 billion (KSh177.9 billion) from US$1.371 billion (KSh177.5 billion) the previous year. This was the first increase in five years.
The rebound was largely driven by a shift toward safer debt instruments, including government and corporate bonds, which accounted for US$1.261 billion (KSh163.3 billion) of US investments in Kenya last year.
Analysts say the trend reflects investors’ preference for stable returns in the debt market amid volatility in equities.