June 24, 2024
American Media Bigwigs Certifies That Kenya Most Attractive Destination For Foreign Investors Now

American Media Bigwigs Certifies That Kenya Most Attractive Destination For Foreign Investors Now

Kenya has been listed as one of the countries that has attracted more foreign investors in recent months, despite the push and pull of the Finance Bill 2024.

On Tuesday, June 11, the Financial Times listed Kenya among the countries which have made a turnaround recently which the British publication attributed to higher interest rates and a stabilising economy.

According to the publication, the above factors have prompted more foreign investors to consider investing in local currency bonds such as those issued by the Central Bank of Kenya (CBK).

The bonds are gaining popularity due to Kenya’s move to liberalise currency markets and increase interest rates.

This action is aimed at improving Kenya’s economy.

The two factors have made Kenya more attractive with some investors earning more by choosing different investment avenues in the country.

According to some of the investors who spoke to the publication, choosing Kenya and other frontier markets has become a more appealing proposition for investors.

Most have reported that it has provided them with healthy returns in comparison to other countries, such as the United States.

“A mixture of currency devaluations, interest rate rises, policy reforms and bailout loans help reassure investors,” another investor who spoke to the Financial Times remarked.

In addition to Kenya, Nigeria, Egypt, and Pakistan have experienced positive growth and are attracting more investors.

Recently, CBK Governor Kamau Thugge announced that the bench lending rate would remain at 13%.

Thugge further revealed that the set rate was to help steady the inflation rates and stabilise the Kenyan Shilling. The rate was increased from February’s 12.50 percent.

The government has also considered raising billions of dollars through Treasury bonds. CBK announced in May that it planned to raise Ksh15 billion from investors.

This came after a low turnout at the bond auction, with the government receiving only Ksh14 billion in offers from investors, compared to the Ksh25 billion target.

CBK only accepted Ksh10 billion of the total offered, leaving a Ksh15 deficit.

Notably, this change in investors’ interest comes at a time when several foreign investors in the country were complaining of high taxation.

American Media Bigwigs Certifies That Kenya Most Attractive Destination For Foreign Investors Now

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