I wonder what you people will be posting once the bull run returns... We are closer to the bottom than before!

The NSE is like any business... There are good and bad times unfortunately these are the bad times at the NSE... Stay strong...

Brilliantly put. Look at Home Afrika. Listed with fanfare and it was all a shell. The guy who cashed out went on to produce several more shells in the private sector including the dead in the water Longonot Gate venture that is yet to even construct a decent road through the land in 8 years! Let alone a much taunted golf resort city! The only major structure constructed is a gate - pun fully intended. Kurwitu which has never traded a single share in years - complete fraud. NBK, HFCK; all shells that should have collapsed decades ago - have been exposed multiple times by insiders that they are scrap metal with funny accounting and BILLIONS in hidden loans in default but very few pay attention. The "Sameer squad" companies - all speculative frauds. Tens of delisted companies - all fraudulent. KQ, Uchumi - all frauds struggling to climb out of massive looting sprees. Frauds left right and centre. The NSE long stopped tracking/being a barometer for the red hawtt 5%+ growth of the real economy because it does NOT reflect the real economy. Dumping a huge cache of one's monies in NSE is like playing real Russian Roulette with a friend for several hours and hoping to make it to work safely the next day. Gamble with a few coins..that is fine..but to invest big chunks...a big no no IMHO.

@mungundaman I will ask again... Which sectors of the Kenyan economy are doing well?

I don't want to here about state contracts or tenders...


It's well known fact in Wazua that Home Afrika was a no investment... Same as Sameer, NBK, KQ, Uchumi and Kirwitu...

As far as HF is concerned...they took alot of risk... When the rate cap came they were caught swimming naked... HF is also a barometer on how bad things are in Kenyas real estate sector... Corruption money has been inflating prices... Artificial demand...

Read this and weep https://www.businessdail...7938-kjjsa1z/index.html


The truth is Uhuru has F****d the Kenyan economy with Chinese loans!

So huge projects like SGR had no impact on NSE or anyone because everything was coming from China including workers!

Real estate -red hawtt
Service industry -red hawtt
Agriculture -red hawtt
Fintech-red hawtt
Financial services -red hawtt
Manufacturing -doing reasonably well

Don't let a few crumbling companies on the casino fool you. The vast majority of companies in the sectors above are doing very well.

I wish you could backup your arguments with data or links


"Banking sector data for the first nine months of the year showed that non-performing loans rose to Sh326 billion from Sh260 billion in a similar period last year, driven by defaults from small businesses and the taxi sector. The data paints a picture of households and small traders taking loans that they are unable to service."

Link https://www.businessdail...7938-kjjsa1z/index.html


Fintech???" Those Apps are blowing up with defaults. ... How is Real People doing?

Look at Suraya Properties not at the NSE but blowing up https://www.businessdail...9700-mxpc1xz/index.html


In fact Real Estate is becoming the biggest contributor of NPL's in the banking sector... Data from CBK... Why are folks defaulting on loans if they're making a killing? https://www.standardmedi...close-is-it-to-bursting

NSE is a safe haven... Just learn how to invest properly... Stop investing in monkeys

The 5% growth rate is due to Government spending on vanity projects like SGR...

Unless you were a middle men or you had land near SGR I don't see how you benefited because the China man supplied everything...

Wewe @shambaman, you are trying to paint a rosy picture of dustbowl investing but its nothing close.

First you must overcome the the capital huddle. The less your capital, the more likely you are to be relegated to periphery of dust bowl, yaani dustbowl of the dustbowl.

Those places are the ones where you pay deposit and wait for subdivision or mara title processing. If you have 8 to 5 job, just doing the due diligence is a problem. You have to rely on the broker, a crook most likely, to do the so called "due dilligence". This is because the alternative is to take leave and go camp there.

Doing search is a whole day affair. Dont even mention chasing the title deed.

You then discover that the land has no beacons, or beacons were removed by herdsmen. Sasa tafuta surveyor. Then you fence it to avoid further issues with shamba imefika wapi.

5yrs down, fence has been stollen. Posts have long been used as firewood by herdsmen and wire been sold to other guys.

Then you leave the kaplot for 10yrs, when you come back, you cant even remember where it was. Again, tafuta surveyor to redo beacons.

Then your neighbour shows up and claims your beacons are wrongly done and encroached on his shamba. Dispute inaingia papo hapo. You now have a " hung" shamba. Cant develop, cant sell.

These are real risks in mugunda investing esp huko dustbowl.

Why investing in the NSE is a waste of your intellect and money and is the Kenyan reincarnation of "fool's gold"

definition:
fool's gold is also known as pyrite iron, fool's gold is a gold-colored mineral that is often mistaken for real gold but has no value

1. Your investment is subject to the whims of the market and a lot of factors outside your control. If it was your small business facing these challenges at least you have the opportunity to deal with the problems yourself or talk to that resourceful friend that could sort you out. At the NSE you have to stand on the sidelines and wring your hands as management fumbles with simple things that you would know how to deal with.

2. You will get a false sense of achievement. Naturally when the market goes up you will be on a false high. You won't understand why you were successful, preparing you to make large mistakes in the future. Your high will be more similar to that of a gambler than that of a business owner who has acquired real knowledge and experience.

3. You are entrusting your money with management in an environment of low trust and poor law enforcement. How many NSE companies have had corrupt management? It doesn't even matter if the company is doing well or not. Your company could be in a great industry where it should be making a lot of profits but management finds a way to steal the value from you in the form of bonuses, side deals and tenders to related parties etc. There are many companies in the NSE where management has done very well for themselves in the last 5 years while shareholders have lost value.

4. We as a continent are not there yet. We have very few companies listed in African stock markets precisely because we have too few companies in Africa. We are in an time period where we are called to be pioneers and build companies, yet unfortunately most of us have been educated using a syllabus suited for the developed world Wall Street BS. Your situation as an African if you look towards the West or specifically the US for inspiration should be more similar to the pioneers who first immigrated to the United States of America and had to build everything from scratch. That is where most African countries are. Not Wall Street level! The smart person is the one that can tell the difference.

5. It's a poor investment. You are much better off putting your hard earned money in CBK treasury bills and bonds and getting 9%-10% a year than losing 40%-60% of it in the NSE. If you want unlimited upside possibility take a small percentage of your assets say 10% and either start a small company or fund one where you have the ability to use your intellect, connections and money to grow the value of your investment. Worst case if you lose the 10% you still have the 90% of your assets intact.

6. You will waste your time and intellect analyzing the NSE than using it to solve society's problems and generate wealth for yourself. There are brilliant people on Wazua with great intellect and insights but unfortunately that is wasted because they are not able to implement their ideas. That intellect would generate a lot more return solving problems in a small company.

That is why a few years ago, I sold all my NSE equity, started a company in stead and made a lot lot more return for myself while creating much needed jobs in the economy.

Kwanza huko "dustbowl of the dustbowl", wacha tu! I bought some 'dirt-cheap' plots in the dustbowl of the dustbowl 2010/11, and my oh my, how I wish I went to the casino! While I have title deeds, man that place isn't developing (not perhaps until after 2022!) and one can't thus unlock the value any time soon, unless @Mugundaman is willing to buy me out!