Kenya’s stock market is a fallen star, as election rerun sends investors scurrying for the exits
Nairobi — Traders are deserting Kenya’s stock market, a star performer earlier this year, as the unresolved crisis over the country’s presidential election discourages foreign investors. Volumes traded on the Nairobi stock exchange have slumped to the lowest this year, dropping to less than 46-million shares in the week ended October 6 from as high as 285-million in June. Values have also dropped, with $870,000 of shares traded on Thursday, down 76% from turnover of $3.6m on August 31, before judges ordered a rerun of the vote. "The equity market is currently a rabbit trapped in the political headlights," says Aly Khan Satchu, CEO of Nairobi-based Rich Management. Kenya’s benchmark index, which gained 26% in the 12 months to August 31, has slumped to become the worst performer in Africa and the second-biggest decliner globally since the Supreme Court ordered on September 1 that a new vote be held within 60 days. That was the first time an African presidential election has been overt...
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