Impact of Stock Market Development on Economic Growth in Kenya: A Systematic Review

Thumbnail Image



Journal Title

Journal ISSN

Volume Title


International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)


This study aims to analyze the relationship between the stock market development and economic growth in Kenya This study uses a systematic review and analysis of relevant empirical reviews from previous studies. The study analyses data from five previous studies done in Kenya between the period 2017 -2021. The findings of the systematic review show that while an expanding stock market can cause economic growth to be impacted positively, this relationship is not straightforward and is affected by a variety of factors, including political stability, government policies, financial infrastructure, and the availability of credit and foreign investment. The study also identifies several challenges that have hindered stock market development in Kenya, including a shortage of liquidity, limited participation by domestic investors, weak corporate governance, and inadequate regulatory oversight. Based on these findings, the study provides evidence-based recommendations for policymakers to promote stock market development in Kenya and enhance its contribution to economic growth. These recommendations include improving the regulatory framework, enhancing transparency and disclosure requirements, increasing investor education and awareness, and strengthening corporate governance practices. The study concludes that stock market development has a significant positive effect on economic development in Kenya.


Journal Article


Stock Market Development, Economic Growth, Kenya, Systematic Review


Kithandi, C., Moragwa, C., & Mutunga, A. (2023). Impact of Stock Market Development on Economic Growth in Kenya: A Systematic Review. International Journal of Services Economics and Management, 10, 116–121.