Kenya stock market loses $484m ‘less than 10 minutes’ after election annulment

The Nairobi Securities Exchange lost about $484m less than 1o minutes after the country’s presidential election was annulled by its supreme court, The Star, a Kenyan newspaper, reports. 

The country’s shilling also weakened by 0.44 per cent against the dollar less than an hour after the annulment.

The supreme court had cited irregularities on the part of the country’s electoral commission as reason for the annulment on Friday.

According to Reuters, less than an hour after the court ruling, commercial banks quoted the shilling at 103.20/40 per dollar, compared with 102.75/95 at Thursday’s close.

“There was a bit of euphoria,” Reuters quoted a trader from a leading commercial bank as saying, while referring to market volatility ensuing immediately after the ruling.

“If offshore investors panic, the shilling might come under pressure.”

Incumbent President Uhuru Kenyatta had been declared winner of the election which the opposition alleged was marred by irregularities.

The court, however, said there was no evidence of misconduct on the part of Kenyatta who garnered 54.3 percent of the votes to defeat Raila Odinga, his rival, who polled 44.7%.

The court ordered that fresh election be conducted within 60 days.