The main indices at the Nairobi Securities Exchange, the NSE 20 share index (used to measure the performance of 20 blue-chip companies listed on the NSE) and the NSE all-share index (used to measure the performance of all the companies listed on the exchange) are low. In 2006 and 2007, prior to the post-election violence (PEV) and the global financial crisis, the NSE 20-share index averaged 4,597.10 points and 5,261.05 points respectively. Things were looking up. Following the collapse of the global financial systems in 2007-2008 in Europe and the Americas, the Kenyan economy experienced some ripple effects. Though the effects were minor, the NSE witnessed reduced trading caused by withdrawal of foreign funds, with a lot of the monies being called back to their parent counties.

So here we are. As of closing yesterday, NSE 20-share index was at 3,585.12 points. This is significantly below the pre-PEV levels, 22% below the average index performance in 2006 and 32% below the average index performance in 2007. The rule of thumb when investing in the stock markets is to buy bear and sell bull, to buy when the market is depressed and prices are low and to sell when things pick up and prices rise. From the look of things, it is a good time to buy stocks. So some free advice, thinking of buying stocks, buy them now.