The Capital Markets Authority (CMA) has flagged the dominance of five companies — including Safaricom — in the 65-stock Nairobi bourse as a big risk, with the performance of their shares dictating whether the market goes up or down on any given day.
The top five firms at the Nairobi Securities Exchange (NSE) have grown their share of the market’s total investor wealth to 76.4 percent, up from 65 percent three years ago. This has made it difficult for investors to measure the true performance of the bourse due to the companies’ outsized influence on key market indicators.
