Foreign Investors Are Worried About Kenya’s Economy And It’s Because of Nigeria

Devaluation of the naira could prompt investor flows into Nigerian stocks at the expense of Kenyan holdings, Renaissance Capital’s Global Chief Economist Charles Robertson said in a telephone interview on June 16.

Nigeria had underperformed the four stock exchanges with the most actively traded stocks on the continent (outside of South Africa) up until June 16. Since then the Nigerian Stock Exchange AllShare Index has recovered to post a 2.72 percent gain for the year to June 21, compared with a 8.44 percent increase for the Moroccan MADEX Index, 3.5 percent for the Egyptian 30 Index and 0.46 percent for Kenya’s Nairobi Stock Exchange All-Share Index.

Over coming years Kenyan equities could have the most to lose now that Nigeria has devalued its currency, said Robertson.

TRIUMPH, CONSOLIDATION, PAINS AND ACHIEVEMENTS - PRESIDENT BUHARI'S DEMOCRACY DAY SPEECH

PRESIDENT BUHARI'S DEMOCRACY DAY SPEECH MAY 29,2016.

My compatriots,

It is one year today since our administration came into office. It has been a year of triumph, consolidation, pains and achievements. By age, instinct and experience, my preference is to look forward, to prepare for the challenges that lie ahead and rededicate the administration to the task of fixing Nigeria. But I believe we can also learn from the obstacles we have overcome and the progress we made thus far, to help strengthen the plans that we have in place to put Nigeria back on the path of progress.

We affirm our belief in democracy as the form of government that best assures the active participation and actual benefit of the people. Despite the many years of hardship and disappointment the people of this nation have proved inherently good, industrious tolerant, patient and generous.

Devaluation: Naira-dollar exchange rate circa from 1984 to 1993 (roughly)

In 1984 the Naira-dollar exchange rate was 2:1 at the end of Shagari;

In 1985 it was 4 or 5:1 (under IMF pressure). Buhari overthrown in August 1985

By the time IBB left (1993) it was 80:1 (under SAP et al).

During Abacha's regime (1993 - 1998) it was circa 85:1. The dynamics of Abdulsalami, Obasanjo (2), UMYA, and GEJ can be tracked carefully as well and context placed in evaluating Buhari (2) since 2015.

Meanwhile the slide continues...., accelerating wildly as international Oil prices have dropped post GEJ - for multiple micro and macro reasons, including infrastructure collapse, criminality, etc...National development plans to position Nigeria for the future have been systematically underperforming since 1975....