Global stocks sell-offs cause jitters in Africa

However, exports will emerge as the main beneficiaries as they stand to benefit from a weaker shilling.

For Kenya, the growth in regional trade and fewer primary commodities as principal export products is expected to cushion it from any adverse effect of the seizure of the global markets.

“For now, Kenya is not doing too badly from an export perspective as its trade with regional trade partners have grown, but it does not mean it will be wholly isolated from any slowing of global growth momentum though the situation is likely to be less severe,” said Ms Khan.

For the capital market, the effect is expected to vary due to the strength of linkage with exchanges such as the Johannesburg Stock Exchange likely to be affected more strongly than the Nairobi Stock Exchange (NSE) due to its strong linkage to the main global exchanges.

Lately, the NSE has recorded active participation of foreign investors who have been cherry picking stocks of strong counters.

On Tuesday, foreign buys amounted to Sh90.26 million while the sales totalled Sh94.40 million.

The counters preferred by foreign investors include East African Breweries, Barclays Bank, Standard Chartered, Kenya Power and Lighting Company and Bamburi Cement.