NAIROBI, Aug. 2 (Xinhua) -- Kenya plans to roll out new products in order to attract foreign investors into the capital markets, officials said on Wednesday.
Capital Markets Authority CEO Paul Muthaura told a media briefing in Nairobi that the products seek to reverse the current decline in foreign ownership at the Nairobi Securities Exchange (NSE).
"In line with the industry Capital Markets Master Plan, CMA plans to provide multiple gateways for foreign investors to enter the market through new tailored products such as derivatives and Exchange Traded Funds," Muthaura said.
He added that foreign investors prefer sophisticated trading products which Kenya is yet to fully embrace.
Data from the CMA indicates that as at June, foreign investors held 20.8 percent of the total holdings at the NSE, compared to 21.1 percent in 2016.
The CEO said that since the beginning of the year, there has been a net outflow of approximately 2.2 million U.S. dollars by foreign investors in the capital markets.
"In fact, in March alone foreign equity investors withdrew 18.8 million dollars more from the securities exchange than they invested," he said.
Despite the decline in foreign ownership, international investors still account for between 70 and 80 percent of all daily equity trades.
Muthaura noted that in the past two months, the country's capital market has experienced resurgence as investors have more confidence on the future performance of the economy.
