Nairobi — Kenya Electricity Generating Company (KenGen) has been inducted into the Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index.

Peter Njenga, KenGen's Managing Director and CEO, said the induction has the potential to increase foreign direct investments for the Nairobi Securities Exchange-listed firm, highlighting its strategic importance in the global energy sector.

The investment also enhances KenGen's visibility and attractiveness to global investors, positioning it as a key player in the frontier markets landscape.

"This development is expected to enhance shareholder value by attracting more international investment, thereby increasing liquidity and potentially driving up share prices," said Njenga.

The Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index serves as a crucial benchmark for institutional investors seeking to gain exposure to emerging economies with high growth potential.

Njenga noted that KenGen's inclusion in the index underscores its robust financial performance, innovative energy solutions, and commitment to powering Kenya's future sustainably by leveraging green energy.

Frank Mwiti, Chief Executive Officer, Nairobi Securities Exchange (NSE), assured that KenGen's inclusion in the MSCI Frontier Markets Small Cap Index will enable the company to attract more investors in the energy sector.

"The move will enable wider and deeper coverage of Kenya's equity market increasing the visibility of companies listed on the NSE and enhance their attractiveness to global investors as the indices serve as benchmarks for institutional investors looking to gain exposure to frontier markets," said Mwiti, NSE CEO.