Foreign investors withdrew Sh16 billion from the Kenyan economy in three months to December 2024 as investors fled the political tensions that had gripped the country.
Data released by the Capital Markets Authority shows that the stability of the Kenyan shilling towards the end of 2024 failed to bring confidence in the capital markets as ‘political’ abductions in the review period spread fear among investors.
According to CMA, in the three months to December (Q4), the equity market saw a net outflow of Sh16.639 billion, much higher than the Sh628 million recorded in the third quarter of 2024.
“The rise in capital outflow is mainly linked to the effects of political instability in the country during the second quarter of 2024, which likely caused foreign investors to pull out of the market,” CMA said in its quarterly Capital Markets Soundness Report.
As the effects of political tensions manifested in the markets, foreign investors were forced to sell their investments and move their money to safer markets.

The heightened capital flight manifested despite government indicators showing that in the fourth quarter of 2024, the economy was stable.
CMA CEO Wycliffe Shamiah, however, maintains that the domestic market has shown strong resilience, as reflected in the improved performance of market indices during the quarter.
“The fourth quarter of 2024 saw stable economic growth, with a notable reduction in inflation and central bank targets. Looking ahead, the global economic outlook for 2025 is even more optimistic, with projected global GDP growth of 3.3 per cent, up from 3.2 per cent in 2024,” said Shamiah.