Absa Bank Kenya has rapidly expanded its custody services offering, with assets under custody reportedly exceeding Sh40 billion since its relaunch earlier this year.

The service, aimed at institutional investors such as pension funds, fund managers, insurance providers, and Saccos has found a receptive market, reflecting growing demand for secure and sophisticated asset management solutions.

Launched in May, Absa’s custody arm marked a strategic expansion of its corporate and investment banking portfolio, placing the bank among select institutions delivering institutional-grade fund safekeeping and settlement services in Kenya.

The system covers a range of services, including asset safekeeping, trade settlement, compliance reporting, portfolio reconciliation, and corporate actions execution.

Within just a short period since launch, demand surged, pushing assets under management to around Ksh40 billion a clear signal of institutional investor trust and the market’s craving for reliable custodial infrastructure.

Absa’s value proposition is strengthened by strategic global partnerships with custodians such as BNY Mellon, State Street, and Société Générale, which provide clients seamless access to global investment flows.

The bank also holds a Euroclear infrastructure licence, enabling clients to explore Eurobonds, offshore securities, and commodities including Absa’s own Gold ETF listed on the Nairobi Securities Exchange.

Moreover, Absa is proactively aligning its services with Kenya’s forthcoming virtual assets regulation under the Virtual Assets Service Providers (VASP) Bill, positioning itself to support custody of digital assets when the framework becomes operational.

The launch forum themed “Aligning to the Future of Investments” attracted a broad range of stakeholders from pension administrators and insurance managers to regulatory bodies and industry associations highlighting the importance placed on developing institutional-grade infrastructure.

The successful uptake of these services underscores Absa’s ambition to establish itself as the custodian of choice for Kenya’s growing institutional investment ecosystem.

With the pension sector expected to grow substantially in the coming years and assets under management projected to reach record highs, Absa’s early positioning offers them a critical first-mover advantage.

This rise in assets under custody to over Sh40 billion not only represents confidence in Absa’s operational capability but also signals a maturing financial infrastructure in Kenya one increasingly aligned with global best practices, institutional demands, and evolving regulatory landscapes.

Written By Ian Maleve

Global investors are increasingly turning to markets outside the United States, drawn by more compelling valuations and promising economic growth prospects in emerging and developed economies alike.

This shift comes amid concerns that the U.S. equity market, after years of outperformance, may have reached stretched valuations, particularly in large-cap technology stocks.

Data from major asset managers indicates rising fund inflows into markets across Asia, Latin America, and parts of Europe.

Investment strategists point to improving fundamentals in several countries, including lower inflation, monetary policy easing, and expanding domestic consumption, all of which are driving bullish sentiment for international equities.

Among the notable beneficiaries of this trend are India, Brazil, South Korea, and Mexico, which have seen increased investor interest due to their resilient economic performance and reform-driven growth outlook.

India’s stock market, in particular, has been on an extended rally, backed by strong earnings, a stable political environment, and rising participation from retail and foreign investors.

In Europe, select markets such as Germany and the UK have also begun attracting capital as investors seek diversification from the U.S.-centric rally.

While economic growth in the Eurozone remains modest, attractive valuations and improving earnings forecasts in sectors like industrials, energy, and financials have helped revive interest.

Currency considerations are also playing a role. As the U.S. dollar weakens slightly on expectations of future Federal Reserve rate cuts, investors are finding better opportunities in local currencies and assets abroad, which may benefit from potential appreciation.

Analysts note that while U.S. markets remain structurally strong, the valuation gap between American and non-American equities has widened significantly. This has prompted global fund managers to rebalance portfolios in search of higher returns and lower concentration risk.

As the second half of the year unfolds, international markets may continue to see heightened interest, particularly as global economic activity stabilizes and geopolitical uncertainties shift attention toward broader diversification. The movement signals a potential rebalancing in the global investment landscape after over a decade of U.S. market dominance.

Written By Ian Maleve

Asian share markets advanced on Monday, buoyed by investor relief after recent US inflation figures came in slightly below expectations, bolstering hopes of a near-term interest rate cut by the Federal Reserve.

The data reinforced expectations that inflationary pressures in the world’s largest economy are cooling, offering global markets some breathing room.

Japan’s Nikkei 225 led gains across the region, rising by over 1 percent to approach its previous record highs. South Korea’s Kospi and Australia’s ASX 200 also traded in positive territory, while Hong Kong’s Hang Seng Index extended its recovery, supported by stronger-than-expected earnings in the tech sector.

Chinese mainland indices showed moderate gains, with investors remaining cautiously optimistic amid ongoing concerns over property sector instability and sluggish consumer confidence.

The rally follows the release of the latest US Consumer Price Index (CPI) data, which showed core inflation softening slightly more than forecast.

This has prompted traders to increase bets that the Federal Reserve could begin cutting interest rates as early as the fourth quarter of 2025. The Fed’s next meeting is being closely watched, but market sentiment now leans more dovishly.

As a result, the US dollar remained on the defensive in early Monday trading, edging lower against major Asian currencies including the Japanese yen and the Chinese yuan.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped marginally, reflecting the reduced urgency for further monetary tightening.

In the bond markets, yields on US Treasury notes also dipped as investors adjusted their expectations for future interest rates.

Meanwhile, commodity markets saw limited movement, with oil prices holding steady and gold prices slightly firmer due to the weaker dollar.

While sentiment across Asia remains generally positive, investors are expected to tread cautiously ahead of key economic releases later in the week, including US retail sales data and commentary from Federal Reserve officials.

Still, the softer inflation reading has clearly lifted global risk appetite and renewed momentum for equities, at least in the short term.

Written By Ian Maleve