Kenya is facing an uncertain economic future after New York-based Morgan Stanley Capital International (MSCI) Inc. ranked the country among troubled markets technically unfit for foreign investments.
According to MSCI (2022) annual review of global investment markets, Kenya is in the advanced stages of economic meltdown that may lead to deteriorating macroeconomic conditions.
Foreign investors were, therefore, advised to be cautious of the unfavourable investment policies that were put in place by President Uhuru Kenyatta Kenyan government.
MSCI’s decision to place Kenya on the troubled markets watch list adds to the country's many financial problems keeping foreign investors away from staking their investments in the East African nation.
While responding to questions raised by The East African, Trade, Investment and Industry Cabinet Secretary Moses Kuria, curtly said, “I will address this issue on Wednesday.”
The markets watch list provides actionable intelligence reports on countries that portend greater risks for foreign investors.
Kenya’s new administration led by President William Ruto has been gearing up for massive investments by local and international traders.
Moses Kuria had previously indicated that the government would on Wednesday, November 2, review measures meant to attract foreign direct investment (FDI) in the country.
On his Twitter handle, CS Kuria said that he has been ordered to provide solutions to the issues surrounding the free flow of foreign portfolio investments into Kenya.
“I will outline the measures that the government of Kenya is taking in the next 48 hours,” he said on Monday.
The New York-based firm indicated that the policies rendered the country an unattractive destination for foreign investments.
Morgan Stanley Capital International (MSCI) Inc. also placed Nigeria, Mauritius, Egypt, Sri Lanka, Brazil and Qatar on the watch list.
The MSCI Index tracks the performance of global equities, bonds and real estate markets and advises foreign institutional investors, including pension funds, on which markets to invest in.
Foreign investors have been running away from Kenya to other developed markets due to a rise in interest rates among many other factors.
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