The Nairobi Securities Exchange (NSE) faces a significant setback as American fund management giant BlackRock Inc. announces its exit from the Kenyan market. BlackRock is divesting its equity investments in emerging and frontier markets, including Kenya and Nigeria, due to liquidity challenges and difficulties in repatriating funds in dollars.
The decision marks the closure of BlackRock’s emerging and frontier markets-focused fund, iShares Frontier and Select EM ETF. This move is expected to impact Nairobi’s aspirations to solidify its status as East Africa’s premier financial and investment hub.
BlackRock’s withdrawal underscores the broader challenges faced by investors in these markets, potentially affecting investor confidence and future foreign investment inflows. The NSE and other stakeholders are now tasked with addressing these issues to attract and retain international investors.
