NSE feels dollar shortage pinch as investors seek better deals in bonds

Nairobi Securities Exchange

A persistent US dollar shortage in Kenya is discouraging foreign investors at the Nairobi Securities Exchange. PHOTO |FILE | NMG

A persistent US dollar shortage in Kenya is discouraging foreign investors at the Nairobi Securities Exchange (NSE) even as the government’s increased appetite for borrowing from the domestic market pushing investors to Treasury bonds, which promise better returns.

“The stockmarket is down. There are lot of foreigners exiting the market mainly because of foreign currency issues, and initially because of the higher interest rates in the US.