Sharp Daily
No Result
View All Result
Wednesday, October 8, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Insurance firms slash stock investments on NSE

Austin Wekesa by Austin Wekesa
February 7, 2024
in News
Reading Time: 2 mins read
Photo/Courtesy

Photo/Courtesy

Insurance firms have substantially curtailed their stock investments, marking a record dip to below 2.0% of their portfolios, in response to ongoing investor exodus from the Nairobi Securities Exchange (NSE).

Data disclosed by the Insurance Regulatory Authority (IRA) reveals a notable 27% decline in the sector’s investments, plummeting from KES 26.5 billion to KES 19.4 billion over the one-year period ending September 2023. This downturn has driven insurance companies’ investments in listed entities to an unprecedented low of 1.9%, relative to total assets worth KES 1.03 trillion, continuing a downward trajectory initiated in 2021.

This downward trend may be attributed to lackluster performance among listed firms, juxtaposed with more attractive interest rates offered by government securities such as Treasury bonds and bills.

Consequently, long-term insurers have augmented their holdings in government securities by 10.3%, while general insurers have seen an 8.2% increase. Both segments now allocate over half of their investments to government securities.

RELATEDPOSTS

NSE deserves more attention from young investors

May 29, 2025

Investing in Kenya’s equity market: 2025 opportunities and trends

April 28, 2025

In 2014, government securities accounted for 45.0% of the insurance sector’s investments, with listed companies comprising 20.0%. However, this proportion has steadily declined over time. Over the past three years, investments in listed equities have dwindled by over 45.5%, as government securities, term deposits, and investment properties have provided more stable returns.

The NSE has grappled with numerous challenges, including the Covid-19 pandemic, currency shortages, and escalating interest rates, resulting in considerable erosion of investor wealth. Last year alone, the NSE witnessed a 27.5% decline in paper wealth, equivalent to approximately KES 547 billion.

Consequently, in light of the persisting bearish sentiment in the market, insurers have opted to limit their exposure to equities, prioritizing the safeguarding of their profitability.

Previous Post

Role of technology in transforming affordable housing in Africa

Next Post

NSE introduces innovative hybrid bond trading platform

Austin Wekesa

Austin Wekesa

Related Posts

News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025
News

Where do Kenyan stock returns come from? A napkin framework

September 19, 2025
News

September snapshot: CMMF yields 13.12% as month unfolds

September 5, 2025
Private equity investment business concept
News

Private equity and insurance

September 4, 2025

LATEST STORIES

The economic and environmental gains of Kenya’s LPG shift

October 8, 2025

Equities, Bonds, or Fixed Deposits?

October 7, 2025

Kenya’s Inflation is creeping up, What it means for investors

October 7, 2025

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Kenya Pipeline Company IPO

October 3, 2025

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025

Kenya’s Regulated SACCOs Cross Trillion Shilling Mark

October 2, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024