US INVESTORS RAISE KENYA MARKET STAKES

US investors increased the value of their holdings in Kenyan financial assets to KSh258 billion ($1.9 billion) at the end of 2025, the highest level in four years, according to figures from the US Department of the Treasury reported by Business Daily on November 6, 2026.

The portfolio value rose by KSh80 billion, or 45%, from KSh178 billion recorded at the end of 2024. The increase marks the second consecutive year of growth following four years of declining American exposure to Kenyan securities.

The figures cover both equities and debt securities, rather than shares listed on the Nairobi Securities Exchange alone. Government debt accounts for nearly 90% of the total portfolio.

GOVERNMENT DEBIT ATTRACTS MOST OF THE INVESTMENT

US holdings of Kenya's long-term debt securities increased by 42% to KSh231 billion ($1.785 billion), compared with KSh164 billion a year earlier.

Equity holdings also increased significantly, almost doubling to approximately KSh27 billion. Although the percentage increase was substantial, shares represented a much smaller portion of the overall American portfolio.

The latest holdings remain below the pre-pandemic peak of KSh390 billion ($3 billion). This shows that although American exposure to Kenyan assets has recovered, it has not returned to its previous high.

It is also important to understand what the increase represents. A higher portfolio value does not necessarily mean investors transferred an additional KSh80 billion into Kenya during the year. Changes in market prices and exchange rates can also affect the reported value of existing holdings.

WHY FOREIGN INVESTMENT MATTERS

Foreign portfolio investors provide an additional source of demand for government bonds and shares. When international investors purchase these securities, they participate in financing government borrowing and contribute to activity in the stock market.

For Kenya, a broader international investor base can diversify the sources of capital available to the government and businesses. Increased demand for listed shares can also support trading activity on the Nairobi Securities Exchange.

Business Daily reported that relatively high interest rates in the United States have intensified competition for global portfolio investment. This means Kenya must compete with other markets to attract international investors seeking returns.

WHAT THE INCREASE MAY SIGNAL FOR KENYA

Business Daily quoted market insiders as interpreting the rise in American holdings as a sign of renewed interest in Kenyan assets, particularly government debt.

The recovery is encouraging, but it does not mean that all foreign investors have returned or that Kenya's investment risks have disappeared. International investors will continue to assess returns alongside currency movements, interest rates and economic conditions.

The composition of the portfolio is particularly revealing: American investors held approximately KSh231 billion in long-term Kenyan debt securities, compared with only KSh27 billion in equities.