Written By Lisa Murimi
Kenya Electricity Generating Company PLC (KenGen) has achieved a significant milestone by being included in the Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index.
This inclusion, effective after the close of business on August 30, 2024, is set to enhance KenGen’s profile on the global stage, solidifying its position as a major player in Africa’s energy sector.
The MSCI’s quarterly reviews, conducted in February, May, August, and November, determine which companies are added or removed from the index, or have their weightings adjusted.
KenGen’s inclusion is a strategic achievement that could attract substantial foreign direct investment, as the index serves as a key benchmark for institutional investors seeking opportunities in emerging markets with high growth potential.
KenGen’s Managing Director and CEO, Eng. Peter Njenga, expressed optimism, stating, “This inclusion is expected to enhance shareholder value by attracting more international investment, increasing liquidity, and potentially driving up share prices.”
The move is also seen as a win for the Nairobi Securities Exchange (NSE). NSE CEO Frank Mwiti noted, “This will increase the visibility of Kenyan companies to global investors, making Kenya’s equity market more attractive.”
KenGen’s inclusion not only reaffirms its leadership in the energy sector but also underscores its importance in the global energy landscape, contributing to the broader growth and stability of Kenya’s financial markets.
