The Bull That Never Roared: How Kenya’s Leaders Have Tamed the Nairobi Securities Exchange Into Oblivion

It is said, “a goat tied to a post will only graze within its tether.” So too has the Nairobi Securities Exchange (NSE) been tethered for over a decade, a once promising market now grazing lazily in the shadows of lost potential. In the time of Jimnah Mbaru, the NSE was a bullish beast, roaring with excitement and delivering for investors. Today? The bull is muzzled, barely a whisper in a landscape of missed opportunities, poor leadership, and regulatory strangulation.

Leadership is like a ship’s captain—if you steer in the wrong direction, your ship will not reach shore. Under Jimna Mbaru, the NSE surged forward, buoyed by confidence, trust, and forward-thinking leadership. Now, leadership appears to be the anchor weighing it down. With no IPO for over a decade, can we blame investors for fleeing? Why trust a government that allows the market to rot while seeking foreign investors through convoluted PPPs and PIPs? It’s like a fisherman selling his net but expecting fish.

County governments, meanwhile, sit on a golden goose that could lay eggs for their budgets—yet they ignore it. Devolution has opened a world of possibilities, but counties would rather beg the national government for handouts than explore the NSE to raise funds for infrastructure, housing, or water projects. It’s akin to a man with seeds in his hand but waiting for manna from heaven.

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Instead of empowering Kenyan investors, this government seems obsessed with handing over our critical projects to foreign entities. Every PPP we sign, every major infrastructure project we give away, is another drain on our economy. Foreign investors walk away with trillions, leaving behind potholes, incomplete buildings, and a slew of unanswered questions. Why not list these projects on the NSE? It’s as if our leaders would rather build their castles in the sky than their homes on solid ground.

The regulatory environment is no better. Core investors have fled because of the bureaucracy and red tape. How can a market thrive when those meant to oversee it are more focused on keeping it in check than unleashing its potential? It’s the old story of the market trader who spends more time counting the coins than selling the goods.

Kenyans are a people looking to invest. They are dying for opportunities that work—yet, they are bombarded daily by scams, Ponzi schemes, and get-rich-quick promises. Meanwhile, real opportunities lie dormant. Why is the NSE not the financial hub it should be? Why aren’t county governments raising funds here? It’s as if the shepherds are sleeping while the wolves devour the flock.

When the government sells key parastatals to unscrupulous individuals instead of listing them on the market, it is not just a betrayal of the public; it’s economic suicide. Kenyans would happily invest in these entities, creating wealth locally and keeping our money within our borders. Instead, foreign buyers snap them up, often for a fraction of their worth, while Kenyans are left with broken promises. As the Kikuyu say, “A child that is not embraced by the village will burn it down to feel its warmth.” Kenyans are tired of being left out of their own economy.

And what of the companies still listed on the NSE despite having closed shop years ago? It’s like a haunted house, empty, decrepit, yet still standing in the middle of a once vibrant neighborhood. Why are these ghost firms still listed? Does anyone care? Or is the goal to maintain the illusion that the market is still alive, when in reality it’s a fading memory?

To truly understand why the NSE has stagnated, look no further than our leaders. They are the fisherman who refuses to cast his net, expecting the fish to jump in. They focus on attracting foreign investors while ignoring the vibrant, entrepreneurial spirit of Kenyans who are eager to invest. They have tied the NSE to a post, and instead of allowing it to roam freely and thrive, they watch it wither in place.

Let us not forget the regulatory failures that have driven core investors away. While other markets are evolving and embracing innovation, ours is stuck in a time warp. It’s a market where “innovation” is met with suspicion, and where compliance is used as a weapon to choke growth. Kenyan investors have become the farmer who plants a seed and returns to find the soil turned to stone.

There is a reason the NSE was voted the worst-performing stock market. It is no accident. The stagnation is a direct result of the government’s refusal to prioritize local investment and its obsession with external solutions. It’s the classic tale of “the grass is greener on the other side,” except in this case, we’ve ignored the lush pasture in our own backyard.

The government’s focus on PPPs and PIPs instead of tapping into the NSE is baffling. The primary and secondary markets could easily be used to raise funds for critical projects, from roads and hospitals to housing and energy. But instead, we hand over our core projects to foreigners who extract value and leave us with scraps. It’s like selling your best cow for a handful of beans—foolish and short-sighted.

To revitalize the NSE, we need leadership that understands the value of local investment. We need a regulatory environment that fosters innovation and reduces barriers to entry. We need county governments to wake up and realize the goldmine they are sitting on. And most importantly, we need to stop selling our future to the highest foreign bidder. As the saying goes, “A bird in the hand is worth two in the bush.” It’s time Kenya stopped looking for miracles abroad and started building its wealth at home.

In the end, the story of the NSE is not one of inevitable failure but of missed opportunities. Kenyans are ready to invest, to grow their wealth, and to build their nation. What we need is a government that sees the NSE for what it is—a sleeping giant, waiting to be awakened.

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