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How will the Kenyan markets fare this week?
Kenyan politicians are said to be back on the campaign trail today. That's after the Supreme Court ruled on Friday that the previous elections won by Uhuru Kenyatta were unfair. But how should investors play the Kenyan market in the meantime? Neville Mandimika, Africa Analyst, RMB joins CNBC Africa for more.
Mon, 04 Sep 2017 07:51:41 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The historic decision by the Kenyan Supreme Court to nullify President Kenyatta's election has sent shockwaves through the market, prompting a halt in trading and heightened volatility.
- Investors are advised to focus on the long-term fundamentals of the Kenyan economy, which remains robust despite the current political upheaval.
- The Supreme Court ruling underscores the importance of strong institutions and the rule of law in safeguarding investor confidence and promoting transparency in African countries.
The Kenyan markets have been plunged into uncertainty following the historic decision by the Supreme Court to nullify the election of President Uhuru Kenyatta. Investors are treading cautiously as Kenyan shares and dollar-denominated bonds plummeted, leading to a halt in trading to prevent panic selling. With a 60-day waiting period for a new election, analysts and investors are grappling with the implications of this unprecedented ruling. Neville Mandimika, an African Analyst at RMB, shared insights on how South African markets operating in Kenya should navigate this challenging period. Mandimika emphasized the need to examine the long-term fundamentals of the Kenyan economy, which remain resilient despite the current political turmoil. He advised investors to stay calm, look past the immediate market volatility, and focus on the country's robust growth trajectory and infrastructure development. While acknowledging the uncertainty in the short term, Mandimika underscored the importance of maintaining a steady approach and not succumbing to knee-jerk reactions. As investors await the new election on November 1st, Mandimika pointed out that both main candidates share a similar economic vision, providing some reassurance regarding the continuity of key policies. The analyst highlighted the significance of the Supreme Court's decision in reinforcing institutional strength and the rule of law in African countries. He viewed the ruling as a positive step towards promoting transparency and accountability, which could bolster investor confidence in the region. Despite the current market jitters, Mandimika expressed optimism about the Kenyan economy's prospects post-election, emphasizing that the country's growth trajectory is well-supported by its economic fundamentals. As the political landscape evolves and election day approaches, investors are advised to maintain a cautious yet optimistic outlook on the Kenyan markets.
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