The Nairobi Securities Exchange (NSE) has been reclassified by the FSTE (Financial Times Stock Exchange) Russel Index from ‘Restricted’ to ‘Pass’, after it fixed delays in repatriating capital.
- •This upgrade, which was received by the NSE from the FTSE Russell Index Governance Board in March 2024, follows a technical review of Kenya’s equity market.
- •In a statement, the NSE said it had cleared previously reported delays in the ability of institutional investors to invest repatriate capital from Kenya.
- •The index scores markets as “Pass”, “Restricted” or “Not Met” based on a quality of markets matrix with four sections.
“We are delighted by the reclassification which is a testament to the continued improvement in Kenya’s equity market and a demonstration of the confidence international institutional investors are placing in our market,” David Wainaina, Acting Chief Executive of the Nairobi Securities Exchange said.
In August 2022, the FTSE Russell froze index changes for Kenya and Ghana due to foreign exchange pressures and illiquidity which made it hard for foreign investors to repatriate capital. It lifted both freezes in September 2023, and said it would “continue to monitor foreign exchange liquidity and engage with the Ghanaian and Kenyan authorities should any delays appear.”
According to the latest Central Bank of Kenya (CBK) Weekly bulletin, the NASI, NSE 25, and NSE 20 share price indices increased by 7.4 percent, 6.5 percent, and 5.6 percent, respectively during the week ending March 28.
Market capitalization, equity turnover, and total shares traded also increased by 7.4 percent, 200.2 percent, and 206.4 percent, respectively.