Nairobi, July 29 -- International investors have retained a positive outlook on Kenya despite the economic challenges caused by the US-Israel war against Iran and the political risk of the upcoming general elections, global lender Citi says.

Citing activity by the lender's global clients, Citibank NA Kenya chief executive officer Martin Mugambi told the Business Daily that corporate and portfolio investors did not cut their flows into Kenya in the first half of the year.

Since the start of the conflict in the Middle East at the end of February, global investors have largely shifted capital from emerging and frontier markets into safe-haven assets such as the US dollar and gold, fearing losses due to inflation.

Such capital flight tends...