Kenya’s capital markets staged a recovery after US President Donald Trump paused planned reciprocal tariffs above 10 percent for 90 days, calming investor fears of a deepening global trade war.
The Nairobi Securities Exchange (NSE) gained Sh34 billion in market capitalisation, offsetting part of the Sh124.4 billion slump experienced earlier in the week, while the shilling strengthened to Sh129.42 per dollar amid eased forex demand.
Blue chip stocks led the rebound, with Safaricom gaining Sh12 billion, KCB Group Sh7.2 billion, and Equity Group Sh5.85 billion.
These three firms accounted for nearly three-quarters of the day’s NSE gains, following a week of volatility driven by global risk-off sentiment.
The rally reflected renewed investor confidence, although analysts warn the relief may be short-lived depending on outcomes of the tariff review.
The tariff reprieve excluded China, where levies rose to 125 percent, but offered temporary relief for other markets.
