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Kenya’s fiscal policy is set to benefit from a renewed focus on managing external liquidity concerns even as fiscal challenges persist, according to a new study.

The latest global Market Outlook Report for 2024 from Standard Chartered titled “Sailing with the Wind” finds that the US and other major economies are likely to witness sharply slower growth and sliding inflation in 2024.

It is a compilation of views by the bank’s Chief Investment Officer outlining the institution’s investment strategy for the year ahead.

During a presentation of the report held in Nairobi yesterday, Manpreet Gill, Chief Investment Officer of Africa, Middle East and Europe at Standard Chartered, said that investors should carefully consider their investment objectives, matching them against long term investment horizons and focus on building portfolios that can weather drawdowns in their portfolio.

“A key element of our advisory is that investors need to retain a strict investing discipline – they should not force sell, whether it be due to emotional or financial needs, and they should pivot to avoid excessive, permanent losses,” Gill said.

The report finds that US and other major economies are likely to witness sharply slower growth and sliding inflation in 2024.

According to the report, equity and bond markets are expected to start 2024 positively, supported by hopes of a soft landing and central bank policy shifting towards supporting growth, but it remains on watch should macro winds shift towards a harder landing.

Closer to home, Standard Chartered advises that investors should anticipate more stability in lending rates, even as expected fluctuations in forex and the tax environment continue to shape the operating environment.

“Being able to spot where asset class risk/reward appears the most attractive will be key for Kenyan investors. For many, this will mean taking prudent steps to retain investments and look for long term returns,” said Paul Njoki, Head, Wealth Management, East Africa, Standard Chartered.

He said the developments have led to the bank launching a new holistic investment framework that enables clients to build strategic portfolios to protect and grow their wealth.