By Ahmad Assiri

Kenyan equities are expected to remain steady around the 1,900-point mark, with the NSE 20-share index closing flat last Friday. The decline in the 91-day Treasury bill rate below 10% for the first time since April 2023 reflects the Central Bank of Kenya’s (CBK) accommodative monetary policy. While this may make equities more attractive compared to government securities, retail investors, who have favoured Treasury bills for their attractive rates, might shift to other investments, altering the fixed-income market dynamics.

The Kenyan shilling remains stable against the U.S. dollar, supported by a 19.2% rise in diaspora remittances to USD 423.2 million in November 2024, according to CBK. These inflows have strengthened the current account and foreign exchange market, ensuring more financial stability. With foreign exchange reserves at USD 9 billion, covering 4.6 months of imports and meeting statutory requirements, confidence in the market remains strong and may attract foreign investment.

Assiri is Research Strategist at Pepperstone