Kenya’s IPO prospects are facing challenges due to a hike in bond rates, tightening bank loans, and protests from Gen-Z. The increase in bond rates has made it more expensive for companies to raise capital through issuing bonds. Additionally, banks have been reducing their lending due to the economic uncertainty caused by the COVID-19 pandemic, making it harder for companies to secure financing for their IPOs.
On top of these financial obstacles, Gen-Z protests have been adding to the difficulties faced by companies looking to go public. This generation is known for its activism and has been vocal about issues such as climate change, social justice, and corporate responsibility. These protests can create negative publicity for companies, potentially deterring investors from participating in their IPOs.
Overall, the combination of these factors has dimmed Kenya’s IPO prospects. Companies will need to carefully navigate these challenges in order to successfully go public in the current economic climate.