Peaceful vote pays dividends as bourse and shilling strengthen

Currency fluctuations are also an additional factor for foreign investors to consider when transacting at the bourse as their gains or losses are affect returns.

Where the depreciation of the shilling makes local stocks appear cheap in dollar terms when buying, it makes it expensive for a foreign investor who wants cash-in on their investments as they stand to lose more in foreign losses.

In general the county’s economic radar has been showing very positive signs in recent weeks as the country moved closer to the historic vote on the constitution.

The national mood has been interpreted by currency traders as a significant step towards diffusion of potential political tension and the uncertainty that surrounds general elections in Kenya, which has in turn positive affected investor confidence.