Central Bank Governor Kamau Thugge in March announced that BlackRock, one of the world’s leading providers of investment solutions, had entered the Kenyan market and invested on the Nairobi Securities Exchange.
The entry of the investors with over $9.1 trillion assets under management was projected to have a ripple effect in the economy with investors on the NSE being among the notable beneficiaries.
Since BlackRock’s entry, shares in several companies have shot up in prices to hand shareholders in various listed companies a major boost.
But as the news and ripple effect of BlackRock’s investment settles in, questions about the reason the World largest asset manager chose Kenya have emerged.
Out of all countries in the world, Kenya was among the 10 countries BlackRock chose to invest in.
While weighing into the ongoing debate, Chairperson of the President’s Council of Economic Advisors David Ndii shared a post suggesting that President William Ruto’s meeting in New York with key investors including BlackRock’s CEO had played a role in the company’s decision.
“I see people befuddled by BlackRock’s entry into our market,” David Ndii shared while quoting a screenshot of an old post shared by the President during his visit to New York in September 2023.
The day was September 18, 2023, and President Ruto was leading a delegation of advisors and other senior government officials in a breakfast meeting at the United Arab Emirates UAE Mission to the United Nations.
Details of the meeting where Ruto met BlackRock CEO
The meeting was led by COP28 President and United Arab Emirates Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber.
Among notable names present in the meeting were Microsoft founder Bill Gates, Former Mayor of New York City Mike Bloomberg, and President of the International Union for Conservation of Nature Razan Al Mubarak.
Also Read: Ruto Secures More Deals for Kenyans, Pushes for Fair Loan Terms
In addition, the CEO of Crescent Enterprises Badr Jafar, CEO of BlackRock Larry Fink, Zimbabwean businessman Strive Masiyiwa and Dr Mo Ibrahim of the Mohamed Ibrahim Foundation were also present.
Ruto’s message to investors
In his speech, President Ruto called for reforms in the global financial architecture, especially debt restructuring and enhancement of the International Financial Institutions (IFIs).
This, he explained, would help to spur development and empower nations in the global south to meaningfully participate in climate action.
“By eradicating unjust discrimination, we will foster shared prosperity and pave the way for the achievement of our climate action objectives and a sustainable future,” he said.The meeting was one of his engagements in New York on the sidelines of the United Nations General Assembly (UNGA) 2023.
Ruto also met the US business community at the United Nations Development Programme-UNDP’s inaugural Africa Investment Partnership Forum in New York.
Also Read: Investors Reap Big as World’s Largest Investor Enters Kenyan Market
At the meeting that brought together players in the US business community, Ruto called for a shift from the reliance on foreign aid to encouraging investors to invest in Africa.
“Africa must scale up policies that spur democracy and create a friendly investment environment that will stimulate job creation and wealth generation. This way, we will drive growth and reduce dependence on foreign aid,” Ruto said in the Conference.
About BlackRock
Founded in 1988 by Larry Fink, BlackRock is an American multinational company specialized in offering investment solutions and headquartered in New York.
Over the years of its existence, BlackRock has established itself as a leader in the world of investments having invested in areas such as equities, money market instruments, and fixed income. It owns stakes in some of the world’s biggest companies including America’s tech giants, making it a force in the investments sector.
At the moment, BlackRock competitors in the world include the famous Vanguard Group and the State Street Corp.
