Nairobi — Kenyan stock prices at more than three-year lows may have further to fall with domestic investors favouring bonds and foreign buyers waiting for lower valuations, the head of the bourse said. Shares on the Nairobi Securities Exchange (NSE) have dropped 6.9% since January 1, extending last year’s 8.5% decline, because of jitters among investors about elections scheduled for August. The yield on Kenya’s benchmark 10-year bond fell almost 200 basis points to 14.02% on Tuesday from a high of 16% in February, according to data compiled by Bloomberg. "Because of issues around volatility in the markets, most pension schemes over the past two years have lost value in their equity holdings so they want to play a bit safer," NSE CEO Geoffrey Odundo said in an interview on Monday at his office in the capital. "Interest rates have historically given them a better performance so that is why they are willing to buy government paper." Kenya’s stock exchange is the world’s worst performer...

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