Kenya approves first domestic banking ETF for Nairobi Securities Exchange

The Capital Markets Authority (CMA) of Kenya has approved the launch of the country’s first fully domestic exchange-traded fund (ETF), the WSA Banking ETF. Managed by Tradiam Asset Managers and developed by fintech Wall Street Africa, the fund is scheduled to list on the Nairobi Securities Exchange (NSE) in the fourth quarter of 2026.

The ETF aims to raise between 5 billion and 7 billion Kenyan shillings (approximately $38.6 million to $54.1 million) by allowing investors to purchase a basket of all listed Kenyan banks in a single transaction. This move follows a significant rally in the NSE banking sector, which has seen indices rise by over 62% since October 2025.

While the NSE has seen market capitalization reach approximately 4 trillion Kenyan shillings, analysts note that the market still faces challenges in providing deep, long-term financing for businesses of various sizes. Currently, many enterprises remain heavily reliant on bank loans due to the lack of diverse capital market instruments for small and medium-sized businesses.