The Nairobi Stock Exchange (NSE) through a paid statement by its chairman, Mr. Jimnah Mbaru, has responded to recent allegations that the growth of funds invested at the NSE had come from drugs or other illegal sources.
He says it's mainly from a basic shift among institutions and individuals who previouly used to invest in land and real estate but have now moved to more liquid invstements such as to equities and government securities
The increased funds come from, among others sources:
- many Kenyan parents don’t have to pay primary school fees anymore since the advent of free primary education
- better management & compliance of pension funds who before had too much real estate investments including the NSSF
- increased insurance premium collections and increased corporate retained earnings
- substantial remittances by Kenyans in the Diaspora – estimated at $750 million to $1 billion annually
- international investors
- & first time investors in stock market including over 200,000 who bought into the Kengen IPO
