Sharp Daily
No Result
View All Result
Tuesday, October 7, 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 Economy

Kenya must tame stock market volatility to unlock corporate growth

Brian Otieno by Brian Otieno
June 26, 2025
in Economy
Reading Time: 2 mins read

Kenya’s journey toward economic transformation depends heavily on the private sector’s ability to grow, invest, and create jobs. But there’s a quiet threat undermining that growth which is stock market volatility. The performance of listed companies in Kenya is increasingly affected by erratic market swings, and this has broader implications for the economy.

When stock prices are unpredictable, it drives uncertainty, making it harder for companies to plan for the future, distorting investment decisions, weakening investor confidence, and limiting the availability of long-term funding. The stock market, instead of serving as a reliable platform for raising growth capital has become a source of instability.

In Kenya, this problem is more than theoretical. Many listed firms are holding back on expansion plans, wary of how unpredictable stock returns affect their valuations. This hesitation trickles down to employment, innovation, and tax revenues. Moreover, with only a handful of companies listed on the NSE compared to the size of the economy, Kenya is not leveraging its full potential in public markets.

One of the reasons for this cautious corporate environment is that high market volatility makes equity financing expensive. Investors demand higher returns to cushion against risk, forcing companies to either give up more ownership or pay more for capital. As a result, many firms opt to stay private or rely on costly loans, missing out on the transparency and scale benefits that come with listing.

RELATEDPOSTS

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

To reverse this, Kenya must create a more stable and investor-friendly stock market environment. This starts with better corporate disclosures. Investors need consistent, reliable, and timely information to make informed decisions. When communication is weak or erratic, it fuels speculation and volatility.

Additionally, policies that encourage long-term investing such as tax incentives for institutional investors or better protections for minority shareholders can help stabilize markets. A well-regulated environment, backed by strong financial journalism and data transparency will definitely builds trust.

Kenya’s economy is full of potential. But to unlock that potential, companies need a stock market they can rely on not just for valuation, but for growth capital. Reducing volatility is not about controlling prices it’s about building confidence. If businesses can plan better and attract patient capital, they will grow stronger. And a stronger private sector means a stronger Kenya.

Now more than ever, it’s time to treat market stability as a cornerstone of economic development not just a financial afterthought.

Previous Post

Unlocking the power of REITs: A path for retail investors

Next Post

The importance of internships and mentorship for young graduates: Insights from Cytonn Young Leaders Programme

Brian Otieno

Brian Otieno

Related Posts

Economy

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

October 3, 2025
Economy

Fed cuts rates for first time since 2022

September 18, 2025
Economy

How increased oversight can clean up the insurance sector without stifling innovation

September 11, 2025
Economy

How reforming payroll taxes can stabilize employment trends

September 4, 2025
Economy

Kenya’s private sector downturn eases as PMI rises to 49.4 in August

September 4, 2025
Analysis

The informal labor market and classical unemployment in the Kenyan context

August 28, 2025

LATEST STORIES

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

Post-September review: What CMMF did and what’s next

September 26, 2025

Strengthening water utilities through efficiency and accountability

September 26, 2025

Retirement Benefits Schemes Trustee Governance in Kenya

September 26, 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