Market News

Kenya deals decline 25pc in ten months

East Africa investor conference
Participants during an East Africa investor conference in September. PHOTO | DIANA NGILA | NMG 

The disclosed value of corporate and investment deals in Kenya fell by nearly a quarter in the 10 months to October compared to a similar period last year, pushing down the country two places to seventh in deal making economies in Africa.

Deals data compiled by risk and research firm Stratlink Africa shows that the value of deals in Kenya stood at $765.1 million (Sh79 billion) in the period, compared to $1 billion (Sh103 billion) last year.

The survey covers private transactions, mergers and acquisitions, corporate divestiture, Initial Public Offers and venture capital investments.

While Kenyan deals dropped year-on-year, Stratlink says the country is primed to reap the benefits of an improving business environment, which helps attract investors.

The World Bank Doing Business Report 2020 released last month saw Kenya move up five places to rank at position 56 globally, and fourth in Africa after Mauritius (13), Rwanda (38) and Morocco (53).


“Overall, Kenya’s performance in the rankings should support positive investor sentiment and capital flows towards the economy. However, there remains ample room for improvement across a spectrum of business regulations,” said Stratlink in its November African markets update.

In the deals ranking, South Africa remains the continental leader, logging deals worth $4.4 billion (Sh454 billion) in the 10-month period, followed by Mozambique ($3.4 billion (Sh350.9 billion).

Kenya is this year ranked seventh, having been fifth in the same period last year.

The Democratic Republic of Congo and Nigeria logged deals worth $1.4 billion (Sh144.5 billion) each, while Guinea and Swaziland also outflanked Kenya at $1 billion (Sh103.2 billion) and $914 million (Sh94.3 billion) respectively.