The outlook for Kenya’s stock market and the shilling has brightened after the US Federal Reserve gave its clearest signal yet of an interest rate cut next month, which would help reverse some of the foreign investor capital outflows to the US.
Kenya, like other frontier and emerging markets, has been seeing sustained foreign investor selling in its stock market since the US started hiking its rates in March 2020. The US base rate currently stands in the 5.25 percent to 5.5 percent range, a level last seen in 2001.
