World's biggest asset manager sees opportunity in Kenyan stocks

BlackRock Inc., the world's largest asset manager, sees investment opportunities in Kenyan stocks, which have gone from the world's worst performers in 2023 to the best performers this year. The Nairobi All-Share stock index has surged by 48% when measured in dollars, rebounding from a 43% decline in 2023, where the index reached levels last seen in 2011.

Emily Fletcher, co-manager of the Blackrock Frontiers Investment Trust, attributes this turnaround to changes in the country's economic policy, emphasizing Kenya's significant shifts in both fiscal and monetary policy over the past two years.

Despite facing criticism for soaring prices and increased taxes, President William Ruto's government has seen inflation begin to decelerate, and the shilling has appreciated, making it the best-performing currency globally this year. Kenya’s bonds have also become more attractive as Ruto’s administration narrowed its fiscal deficit to about 4% of GDP and doubled its benchmark interest rate to 13% over the past two years.