The Nairobi Securities Exchange (NSE) received a substantial boost as the FTSE Russell Index upgraded its classification from “Restricted” to “Pass” in March 2024. This upgrade signals positive developments in Kenya’s equity market and reflects increased confidence from international investors. Previously, concerns about delays in institutional investors’ ability to repatriate capital from Kenya led to restrictions on incorporating Kenyan securities into global equity indices. However, recent reassessments confirm that these issues have been addressed, resulting in the lifting of restrictions in September 2023.

The FTSE Russell’s classification process involves rigorous scrutiny by external advisory committees and insights from the FTSE Russell Policy Advisory Board. David Wainaina, Acting Chief Executive of the NSE, expressed delight at the reclassification, highlighting it as evidence of ongoing improvements in Kenya’s equity market and growing confidence from international institutional investors. The FTSE Russell’s upgrade carries significant weight, as its equity indexes are widely used by global investors for crucial investment decisions. This improved classification positions Kenya’s equity market for greater visibility and potentially increased investment activity.