Valuation practice is increasingly gaining prominence in the African emerging economies as a key instrument in decision making. However, the concepts and theories being applied remain Western in orientation and are accepted as universal in application. Policymakers are increasingly questioning their relevance given the unique situation of the emerging economies. This has led to increased pressure on academics and practitioners for homegrown answers. This paper discusses valuation practice in Kenya and attempts to unpack the theoretical links between valuation and the idea of the market. It attempts to explain the meaning of the market, value and price. It also attempts to explain the meaning of these concepts in relation to valuation practice. 

This paper discusses market theory and its application to the valuation practice. In this sense, it seeks to link the practice with theory. This paper further traces the evolution of theories related to valuation and their relevance to the amidst several intervening factors.