US firm warns foreign billionaire investors against investing in Kenya over troubled markets, technically unfit for foreign investments.
Kenya’s economic future is uncertain as a result of the country being listed as one of the unstable markets that are technically unfit for foreign investment by New York-based Morgan Stanley Capital International (MSCI) Inc.
Kenya is in the advanced stages of an economic collapse, which might worsen macroeconomic conditions, according to MSCI’s annual evaluation of global investment markets for 2022.
The unfavorable investment policies implemented by the Kenyan government of President Uhuru Kenyatta were consequently warned against by foreign investors.
Foreign investors are reluctant to stake their interests in Kenya due to the country’s numerous financial issues, which have forced MSCI to add Kenya to the troubled markets watch list.
While responding to questions raised by The East African, Trade, Investment and Industry Cabinet Secretary Moses Kuria, curtly said, “I will address this issue on Wednesday.”
The markets watch list provides actionable intelligence reports on countries that portend greater risks for foreign investors.
Kenya’s new administration led by President William Ruto has been gearing up for massive investments by local and international traders.
The US New York-based firm indicated that the policies rendered the country an unattractive destination for foreign investments.
Morgan Stanley Capital International (MSCI) Inc. also placed Nigeria, Mauritius, Egypt, Sri Lanka, Brazil, and Qatar on the watch list.
The MSCI Index tracks the performance of global equities, bonds, and real estate markets and advises foreign institutional investors, including pension funds, on which markets to invest in.
Foreign investors have been running away from Kenya to other developed markets due to a rise in interest rates among many other factors.
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