BlackRock, the world’s leading asset manager with a market cap of Ksh16 trillion, has identified Kenyan stocks as the best-performing globally.
As quoted by Bloomberg, on April 4, Kenyan stocks were seen to have had a change of fortunes in the first three months of 2024.
In 2023, Nairobi Stocks were struggling but that has since changed with BlackRock now terming them as world beaters.
“The All-share stock index in Nairobi has surged 48%, when measured in dollars, rebounding from a 43% plunge in 2023, when the index was trading at levels last seen in 2011,” it was reported.
This exponential growth in value was largely attributed to new economic policies introduced by President William Ruto’s administration.
BlackRock’s assessment of Kenya’s stocks mirrors Ruto’s sentiments on Wednesday, April 3, where he remarked that his administration had been forced to make difficult choices to make Kenya attractive to investors.
Some of the ways Kenya has been able to achieve that is through controlled borrowing and the institution of austerity measures.
“Many people have now confidence in Kenya. If you look at our stock exchange, it is the top performing stock exchange in Africa today because investors globally believe in Kenya,” Ruto stated.
Bloomberg quoting Emily Fletcher, co-manager of the Blackrock Frontiers Investment Trust, stated that the company had confidence in Ruto’s capability to turn around the economy.
In particular, BlackRock stated that Kenya’s bonds were now more attractive under President William Ruto.
Kenya was also seen as an economic powerhouse in the East African region hosting international organisations as well as some of the most profitable companies in Africa.
“With a stable political backdrop, improving macroeconomic outlook and a stock market trading on five times PE, perhaps it is time for investors to re-look at the market,” Fletcher stated.
