• Kenyan companies lost Ksh 125 billion in one day as foreign investors stayed away from trading with nationally recognized, well-established, and financially sound companies after the outbreak of coronavirus.

    The drop was the greatest ever to be recorded in the Nairobi Securities Exchange (NSE), Business Daily reported on Tuesday, March 10.

    The market capitalisation closed at Ksh 2.2 trillion compared to Ksh 2.3 trillion on Friday, March 6, with a telco company and leading banks affected.

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    Medical practitioners dressed in protective gear asses equipment at a Coronavirus Isolation and treatment facility in Mbagathi District Hospital on Friday, March 6, 2020.
    Medical practitioners dressed in protective gear asses equipment at a Coronavirus Isolation and treatment facility in Mbagathi District Hospital on Friday, March 6, 2020.
    Simon Kiragu
    KENYANS.CO.KE

    The companies have attracted investors over the years as foreigners usually seek to invest in fixed income assets, such as government bonds.

    “The market is falling primarily because of risk aversion by foreign investors in the wake of the coronavirus,” Martin Mwirigi, a financial analyst affirmed.

    The outbreak of coronavirus also affected the supply chain of commodities as top retailers in the country contemplated hiking prices of consumer goods.

    The retailers, who had imported goods from China during New Year 2020 indicated that they would soon face a shortage of goods. 

    Kenya imports a variety of goods from China, including mobile phones, machinery, kitchenware, clothing, furniture, optical and medical equipment.

    Retailers revealed that they would turn to alternative sources to meet demand, noting that members of the public would have to pay more as the markets are relatively more expensive than China’s.

    “We already have concerns from suppliers, and the effect of supplies will be apparent towards the end of the month.

    “We expect the prices of key commodities especially electronics, clothing, and toys to rise because of supply hitches and the fact that we are sourcing from more expensive markets,” a retail commercial officer informed Business Daily on Tuesday, March 3.

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    Kenyans shop at a local Nairobi supermarket.
    Kenyans shop at a local Nairobi supermarket.
    Daily Nation