The Nairobi Securities Exchange (NSE) is seeking a boost in investment by joining forces with the UK government under the MOBILIST programme.
Why it matters: This new partnership seeks to list more UK companies on the NSE and drive significant investments into Kenya’s development and climate projects. The move signals a major opportunity for Kenya's private sector, which has struggled with accessing sufficient capital to fund growth and tackle pressing challenges like climate change.
Dig deeper: The collaboration, announced during the UK Trade Commissioner for Africa John Humphrey’s three-day visit to Kenya, is part of a broader strategy to strengthen the UK-Kenya Strategic Partnership.
MOBILIST, an initiative of the UK Government, supports businesses that contribute to the United Nations Sustainable Development Goals (SDGs) by helping them overcome the hurdles they face when seeking to list on exchanges. This strategy aims to attract new capital into emerging markets, Kenya being a key focus.
The programme already has similar agreements with exchanges in Nigeria and South Africa, and Kenya’s growing economic landscape positions it as a critical player in these investment efforts.
The listing of more UK companies on the NSE is set to expand the investment portfolio of UK firms in Kenya. In 2021, the UK’s foreign direct investment (FDI) in Kenya stood at £489 million (Ksh84.18 billion), with the expectation that this new partnership will drive that figure higher.
Notably, the NSE outperformed other African bourses in the first half of the year, buoyed by a stronger shilling and rising blue-chip stock prices, adding an impressive Ksh291 billion to investor wealth. This remarkable performance, coupled with a 21.74 per cent gain of the shilling against the dollar, has already made the Kenyan market highly attractive to foreign investors.
More trade talks: Humphrey's visit will include discussions with key government figures, including Cabinet Secretary for Investments, Trade and Industry Salim Mvurya. Their agenda will focus on implementing flagship UK-Kenya climate initiatives, supporting President Ruto’s Africa Green Industrialisation Initiative (AGII), and fostering long-term investments in sectors critical to both countries’ economic growth.
The visit also aims to reinforce the ongoing UK-Kenya partnership by tackling challenges faced by British businesses in Kenya and removing barriers to trade.
One of the highlights of Humphrey’s trip is his visit to Naivasha, where he will engage with Flamingo Flowers, a major British-Kenyan employer. This interaction underscores the UK's commitment to creating immediate economic benefits for Kenya by removing export tariffs, such as the 8 per cent duty on cut flowers entering the UK.
These efforts are intended to strengthen industries like horticulture, which employs tens of thousands of Kenyans and contributes significantly to the country’s export revenues.
The NSE’s CEO, Frank Mwiti, hailed the MOBILIST partnership as a game-changer for Kenya’s capital market, positioning the NSE as a key player in mobilising capital for critical sectors. This collaboration aligns with the NSE’s strategy to channel more investments into sustainable development, a goal that reflects global trends toward climate-conscious investing.
