US investors have reduced their exposure to Kenyan stocks, slashing holdings by 87 percent in just three years, according to new official data.
Preliminary figures from the U.S. Department of the Treasury and Federal Reserve, released on August 29, reveal that American ownership of Nairobi Securities Exchange (NSE) shares has plunged from Ksh112 billion at the end of 2021 to Ksh14.5 billion by December 2024.
The dramatic exit shows caution among foreign investors toward Kenyan equities, which have struggled with currency depreciation and reduced corporate earnings in recent years.
The survey was undertaken jointly by the U.S. Department of the Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System.
A complementary survey measuring foreign holdings of U.S. securities is also conducted annually. Data from the most recent such survey, which reports on securities held on June 30, 2025, is currently being processed. Preliminary results are expected to be reported on February 27, 2026.
US Investments Increased Slightly in 2024
Despite the equities collapse, the data shows that total investor portfolio holdings in Kenya went up in 2024.
American investors held $1.374 billion (Ksh177.9 billion) in Kenyan securities as of December 31, 2024, compared to $1.371 billion (Ksh177.5 billion) in 2023.
Therefore, although the increase of just $3 million (Ksh388.5 million) is modest, it is the first increase in U.S. holdings in five years.
The majority of funds remain in government and corporate debt securities, valued at $1.261 billion (Ksh163.3 billion).
This means that although American investors are still willing to lend to Kenya through bonds, they are avoiding the stock market.
The Global Context
The survey also showed that overall American holdings of foreign securities reached $15.8 trillion at the end of 2024, up from $15.3 trillion the previous year.
Out of that, $12.1 trillion was in foreign company shares, long-term foreign debt holdings stood at $3.3 trillion, while short-term debt remained at $0.4 trillion.
This shows how Kenyan stocks is just a small piece of the picture because it accounts for less than 0.01% of US global portfolio holdings.
In Africa, South Africa attracted the largest allocations from American investors, ranking at the 30 position on market value of portfolio holdings of foreign securities
The survey was conducted jointly by the US Treasury, the Federal Reserve Bank of New York, and the Federal Reserve Board.
