Investors and financial analysts have raised serious concerns after Business Daily, one of Kenya’s leading financial publications, was found to have misrepresented data from the Nairobi Securities Exchange (NSE) and commodities market trends, potentially misleading investors.
The controversial report published on March 8, 2025, suggested that NSE market capitalization had significantly dropped by 15% in Q1 2025, primarily attributing the downturn to investor withdrawals and declining performance in the agricultural commodities market. However, according to official data from the NSE and the Capital Markets Authority (CMA), the information reported was inaccurate and misleading.
Inaccurate Data Raises Investor Fears
The Business Daily’s report highlighted that the NSE 20 Share Index had plummeted by over 15% in just three months, leading to a capital flight of over Ksh 100 billion from the local stock market. However, official data released by the NSE on March 9, 2025 showed that the index had only declined by 4.3%, a much lower figure than what was reported by the publication.
“Such misrepresentation can lead to panic selling and loss of investor confidence,” stated John Kamau, a financial analyst at ABC Capital. “When investors act on false or exaggerated information, it can destabilize the entire market.”
Additionally, the report’s claim that the commodities market, specifically agriculture, had experienced a 30% decline in trading volumes was also found to be inaccurate. Data from the Agricultural Commodities Exchange (ACE) revealed that trading volumes had instead increased by 7.5% compared to Q4 2024.
NSE, CMA Dispel Misleading Report
The NSE and the Capital Markets Authority (CMA) swiftly moved to clarify the situation, issuing a joint statement on Monday, March 10, 2025. The statement clarified that:
✅ The NSE 20 Share Index recorded a 4.3% decline, not 15% as reported.
✅ The agricultural commodities market saw a 7.5% increase in trading volumes contrary to the 30% decline claimed by the report.
✅ Overall market capitalization stood at Ksh 2.4 trillion, with no significant capital flight observed.
“We urge all media houses to ensure that information concerning financial markets is accurate and factually presented to protect investor confidence,” the NSE statement read.
The CMA further warned that misleading financial information could result in severe economic implications, including mass withdrawals from the market, reduced investment confidence, and potential financial losses.
Market Analysts Call for Accountability
Following the backlash, market analysts and financial institutions have called for accountability from Business Daily for publishing misleading market data without verifying facts from official financial authorities. Some investors have threatened legal action, citing potential financial losses caused by the misleading report.
“The publication should be held responsible for spreading false information that could potentially destabilize the financial market,” said Peter Wanjiru, a stock market investor. “I personally sold off my shares in panic, only to later find out that the market was stable.”
The Kenya Editors Guild (KEG)has also launched an investigation to determine whether Business Daily violated the Journalistic Code of Conduct by failing to verify the accuracy of financial data before publication.
Business Daily Responds
In response to the growing criticism, Business Daily’s editorial team released a statement acknowledging the error in their report, attributing it to inaccurate data from secondary sources.
“We regret the miscommunication regarding the performance of the NSE and commodities market. We assure our readers that measures have been put in place to avoid such errors in the future,” the statement read.
However, many investors remain skeptical, with some demanding compensation for losses they incurred after making financial decisions based on the report.