Market Insights Financial Corporate Finance

Investment Banking - Kenya

Kenya

In Kenya, the projected revenue in the Investment Banking market market is expected to reach US$281.60m in 2024.
Furthermore, it is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 0.57%, resulting in a projected total amount of US$288.10m by 2028.
When comparing globally, it is evident that the United States leads with the highest revenue of US$119.10bn in 2024.
Kenya's Investment Banking market is experiencing a surge in cross-border M&A activity, driven by increased investor confidence in the country's stable economic growth.

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Analyst Opinion

The Investment Banking market in Kenya is experiencing steady growth and development driven by various factors.

Customer preferences: Kenyan investors are increasingly looking for diversified investment options beyond traditional avenues like real estate and savings accounts. This shift in preferences is pushing them towards seeking professional investment banking services to optimize their portfolios and maximize returns.

Trends in the market: One notable trend in the Kenyan Investment Banking market is the rising demand for mergers and acquisitions advisory services. Companies in Kenya are exploring opportunities for strategic partnerships and acquisitions to expand their market presence and enhance competitiveness. This trend is fueled by the need for businesses to adapt to changing market dynamics and capitalize on growth opportunities.

Local special circumstances: Kenya's strategic geographical location and its status as a financial hub in East Africa are contributing to the growth of the Investment Banking market. The country serves as a gateway to the East African region, attracting foreign investors looking to tap into the emerging markets in the region. Additionally, Kenya's stable political environment and supportive regulatory framework provide a conducive atmosphere for investment banking activities to thrive.

Underlying macroeconomic factors: The macroeconomic stability in Kenya, characterized by low inflation rates and steady GDP growth, is bolstering investor confidence in the market. This stability attracts both domestic and foreign investors to explore investment banking services as a means to grow their wealth and secure their financial futures. Furthermore, the government's efforts to promote economic diversification and attract foreign direct investment are creating opportunities for investment banking firms to expand their operations and services in the country.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.