Browsing by Author "CHRISTABEL SHIGHADI KAYANDA"

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    INFLUENCE OF SECURITIES MARKET PERFORMANCE ON ECONOMIC GROWTH IN KENYA BETWEEN 2004 - 2023
    (THE CATHOLIC UNIVERSITY OF EASTERN AFRICA, 2025-10) CHRISTABEL SHIGHADI KAYANDA
    The general objective of the study was to assess how securities market performance affects economic growth in Kenya between 2004 and 2023. Anchored on the Financial Liberalization Theory, the study examined three indicators of market performance: market capitalization (as a percentage of GDP), market liquidity (turnover ratio), and market returns (NSE 20 Share Index and NASI). Secondary data was obtained from the Central Bank of Kenya (CBK), Nairobi Securities Exchange (NSE), Kenya National Bureau of Statistics (KNBS), and the World Bank. Descriptive analysis revealed significant fluctuations in market activity, with a sharp decline in market capitalization and persistently low turnover ratios. Correlation analysis showed weak positive associations between GDP growth and both market capitalization and NASI returns, while turnover ratio had a negative relationship. However, regression results indicated that market capitalization, liquidity, and returns did not significantly influence economic growth during the review period. These findings suggest that Kenya’s securities market has yet to develop the efficiency and depth necessary to perform a key role in driving development. The study concludes that structural and institutional reforms are critical to improving market efficiency, liquidity, and investor confidence, thereby aligning securities market development with national economic goals.