Kenya approves first locally domiciled banking ETF

The Capital Markets Authority (CMA) has approved the WSA Banking Index ETF, marking the first exchange-traded fund created and domiciled in Kenya. Issued by Wallstreet Africa Group Limited and managed by Tradiam Asset Managers Limited, the product is designed to provide investors with diversified exposure to the Kenyan banking sector through a single security.

The fund tracks the NSE Banking Sector Index, which includes 11 listed banks. As an index fund, it replicates the performance of the market-capitalization-weighted index by investing in its constituent shares. The ETF is open-ended, allowing for the creation and cancellation of units based on market demand.

This development follows significant growth in the Nairobi Securities Exchange (NSE), which saw its total valuation exceed KSh4 trillion by mid-2026. While other ETFs are currently listed on the NSE, they are South African funds focused on gold and international equities; the WSA Banking ETF represents a shift toward locally domiciled investment products.