This archive report was first published on 24 October 2019.
With the rise of global markets and the decline of the Kenyan economy, many Kenyans are turning to offshore investing as a way to secure their financial future.
As of 2015, the NSE listed stocks have hit a brick wall, with the NSE 20 recently registering a nine-year low. This has made it increasingly difficult for investors to grow their wealth through domestic investments.
One of the main reasons Kenyans are looking to offshore investing is to hedge against currency depreciation. The Kenya shilling has historically depreciated against developed market currencies at a rate of 6-8% per annum, making it essential for investors to consider alternative options.
So, what are the options for Kenyans looking to invest offshore? Broadly, there are two options: physically taking your money offshore or investing in Kenya shilling-denominated investment options.
Physically taking your money offshore involves going through the exchange control process, opening an offshore bank or brokerage account, and sending Kenya shillings overseas into a currency of your choice. This option is ideal for those who are concerned about political risk and want to protect their wealth from currency depreciation.
On the other hand, investing in Kenya shilling-denominated investment options allows you to invest in foreign markets without physically moving your money offshore. This option is suitable for those who do not have a large lump sum or want to start small.
Ultimately, the decision to invest offshore depends on your individual circumstances and financial goals. It is essential to consult with a financial planner to determine the best option for you.
As a Kenyan, it is crucial to consider a portion of your total portfolio being invested offshore. Investing in offshore assets can provide a hedge against currency depreciation and help you achieve your long-term financial goals.
Remember, stock market investing is a long-term game, and it is essential to be patient and disciplined in your approach.
— Bricklane Research (@BricklaneCapita)
