Kenya’s Stock Market Receives Major Boost After Upgrade

The Nairobi Securities Exchange Plc (NSE) equity market has received an upgrade on its classification from restricted to pass by the FTSE Russell Index Governance Board in March 2024. This follows the FTSE equity country classification interim review of Kenya’s equity market against a range of technical criteria.

As per the assessment, Kenya’s equity market cleared previously reported delays in the ability of institutional investors to repatriate capital from Kenya. Consequently, the restrictions on the implementation of index changes for Kenyan securities within FTSE Russell equity indices were therefore lifted effective September 2023.

The classification and assessment is supported by FTSE Russell’s external advisory committees and FTSE Equity Country Classification Advisory Committee. The committees are composed of market practitioners with technical expertise in disciplines such as trading, custody, and investment management.

The assessment is also supported by the FTSE Russell Policy Advisory Board, which represents the views of leading global investors who furnish FTSE Russell with expert insights into the realities of investing in equity markets across the globe.

“We are delighted by the reclassification which is a testament of the continued improvement in Kenya’s equity market and a demonstration of the confidence international institutional investors are placing in our market,” says Mr David Wainaina, acting Chief Executive of the NSE.

The FTSE Russell’s flagship market cap-weighted equity indexes are used by investors around the world to inform asset allocation decisions, support portfolio construction, and conduct risk and performance analysis.

A broad offering of global and domestic equity market indexes — including the well-known FTSE Global Equity Index Series (FTSE GEIS), FTSE UK Index Series, and the Russell US Indexes — provide clients with a flexible, comprehensive foundation for both their global and local market investing needs.

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