Nairobi, July 1 -- Kenya's capital market is showing encouraging signs of recovery after years of subdued activity.

Trading volumes at the Nairobi Securities Exchange have improved, mergers and acquisitions are on the rise, and new public securities offers have emerged after a prolonged IPO drought.

While these developments point to renewed momentum, transactions alone do not signal a healthy market. The durability of this recovery will depend on one factor above all others: governance.

Kenya's experience has repeatedly shown that investor confidence rests on strong institutions, credible regulation and effective oversight, particularly during periods of political uncertainty.

The post-2022 election period demonstrated how quickly con...