Kenya has multiple opportunities for short- and long-term stock investments that have a proven track record in delivering worthwhile profits.
Though dozens of such instances are available to investors, expert fund managers have consistently identified a number of them as the most rewarding and stable instances when considering how to buy shares in Kenya.
Five among these keep reappearing in professional analyses of the best Kenyan investments both for experienced and entry-level investors. Here is a list of them with short descriptions of their positive records and potential.
1. Safaricom Plc
Safaricom is a leading provider of communications services with a strong focus on expansion and innovation, including new moves into Ethiopia. Though some analysts are of the opinion that the company enjoys a slight overvaluation, investors continue to rally behind its stocks.
It is one of around 400 companies in Africa with an annual turnover exceeding $1 billion and is a steadfast operation enjoying large underpinning by both Vodacom and the Government of Kenya.
2. Kenya Reinsurance Corporation
The company is a longstanding reinsurer in Eastern and Central Africa, and started operating in 1971. It currently provides reinsurance services to more than 265 African companies. KRC is rated AA+ by Global Credit Rating (GCR).
This instance offers investors a secure and established venture with good fundamentals and more than fair long-term prospects.
3. Kenya Commercial Bank Group Plc
With headquarters in Nairobi, the holding company has subsidiaries in Burundi, Rwanda, South Sudan, Tanzania and Uganda.
The company has a strong track record for responsible governance and financial policy, currently focused on investment in sustainable green businesses. With an emphasis on social responsibility and future-orientated strategies, this group makes for a solid investment opportunity.
4. Bamburi Cement Plc
Headquartered in Nairobi, this company produces cement and concrete, with operations in Mombasa. In addition to entering into the green arena with commitments to solar energy, the company is also technically innovative.
It recently announced 3-D printed affordable housing projects in Kenya, and is an established and reliable entity operating in an environment with a high demand for construction services and materials.
5. East Africa Breweries Ltd (EABL)
As a leading regional brewery, EABL has a corporate history stretching back to 1922. Its most important markets are Kenya, Uganda and Tanzania. It produces adult beverages across a wide range of alcoholic and non-alcoholic products.
With its steady and long history and its track-record of successful innovation, this company offers a trustworthy and solidly backed investment opportunity.
How to buy shares in Kenya
- The dealer market is the Nairobi Securities Exchange (NSE), which disposes of a well-organized and secure trading environment.
- Before investing, do the necessary amount of research that will enable you to distinguish between fundamental and technical analysis so that your risks and opportunities can become clearer from the outset.
- Use a reliable, experienced and accredited stockbroker with a deep understanding of regional opportunities and risks.
- Open a Central Depository System (CDS) account which will make sure that settlements are paid in a timely manner.
- Invest prudently, according to your means, and do due diligence in assessing fees and other costs charged by different stockbrokers.
