American investors increased their investments in Kenyan financial markets by 45 percent in 2025, pushing their total portfolio holdings to Sh258 billion, the highest level recorded in four years. The investments, which cover shares in listed companies and long-term government debt securities, rose from Sh178 billion in 2024, representing an increase of Sh80 billion ($615 million).
Data from the US Department of the Treasury shows that the growth marked the second consecutive year of rising American investments in Kenya after four years of decline. The increase also ranks among the largest annual gains recorded in recent years, signalling renewed interest in the country’s financial market.
Several emerging and frontier economies have experienced foreign investor withdrawals. Global investors have become more cautious about investing in riskier markets because of geopolitical tensions and uncertainty surrounding US trade policies. High interest rates in developed economies, particularly the United States, have also increased competition among countries seeking foreign investment.
However, Kenya has continued to attract American investors, with government securities accounting for the largest share of their investments. Nairobi International Financial Centre chief executive Daniel Mainda attributed the growing interest to efforts to improve Kenya’s investment environment and develop products that attract foreign capital.
“It’s the agility of our thinking, the agility of our products. We have taken deliberate steps to ensure that we thrive in the core pillars of order in the economy, and we’re also taking very deliberate steps to find alternative methods of direct investments locally,” said Daniel Mainda.
Investments in Kenyan shares recorded the fastest growth, nearly doubling to Sh27 billion ($204 million), reflecting increased interest in companies listed on the Nairobi Securities Exchange (NSE). The improved performance coincided with a recovery in the local stock market, where the Nairobi All Share Index gained 24.3 percent in the first half of 2025. Market capitalization also increased by 24.6 percent during the same period, according to the Central Bank of Kenya (CBK).
Meanwhile, American investments in long-term Kenyan debt securities rose by 42 percent to Sh231 billion from Sh164 billion, accounting for nearly 90 percent of their total holdings. The growth came as domestic interest rates declined, allowing investors to secure attractive returns on longer-term government securities.
Despite the recovery, American holdings remain below the pre-Covid peak of Sh390 billion recorded before the pandemic, showing that Kenya still has room to attract more foreign investment.