The foreign capital inflow at the Nairobi Securities Exchange (NSE) rose to an 18-month high by the end of June as blue-chip companies declare dividends in the second quarter of 2023 amid an improving dollar situation.

According to the latest data from the Capital Market Authority (CMA), June marked the first instance since February 2022 where the market observed a capital inflow of Sh113 million, giving the bourse some little respite.

Between January and February 2022, the market recorded a net inflow of Sh235 million but this slowed down in those 18 months on the back of Kenya’s general election, global tension, and dollar scarcity in the domestic market that scared many foreign investors.

The stocks of leading big firms driving participation at NSE have often remained attractive owing to stable dividend policies that guarantee investors returns regardless of earnings fluctuations. These included the likes of Safaricom, EABL, KCB Group, Equity Group, Co-operative Bank, and BAT.

“The inflow indicates that foreign investors anticipate participation in the dividend declaration season,” CMA said in the quarter two bulletin.

The dividend payout could help some listed firms attract investors and create demand for their stock on the Nairobi bourse.