The Nairobi Securities Exchange (NSE) is preparing to launch East Africa’s first exchange-traded fund (ETF) focused on artificial intelligence stocks before the end of 2026, as it moves to broaden investment opportunities on Kenya’s capital market.
NSE Chief Executive Officer Frank Mwiti told Reuters that the exchange is developing the product to give local investors exposure to companies at the forefront of the global artificial intelligence industry.
The proposed ETF will track a basket of companies with significant exposure to artificial intelligence, allowing investors to gain access to the sector through a single exchange-listed product rather than purchasing individual foreign technology stocks.
“We want essentially to be able to bring a product to our market where the underlying basket is a reflection of companies that have a direct exposure to AI,” Mwiti said.
The planned product comes as artificial intelligence continues to attract significant global investment, with companies involved in semiconductors, cloud computing, data infrastructure and generative AI recording strong investor interest.
For Kenyan investors, the ETF could provide a relatively accessible avenue for gaining exposure to the rapidly expanding technology sector at a time when direct investment in international markets remains less developed locally.
The NSE has been working to diversify its product offering as it seeks to deepen trading activity, attract more retail investors and increase participation by institutional investors.
The exchange currently provides a range of investment products, including equities, bonds and derivatives, but has limited exposure to global technology themes.
An AI-focused ETF would therefore introduce a new investment category to the Kenyan market while allowing investors to participate indirectly in the performance of a basket of global companies.
Mwiti said the NSE also expects the recent strength in Kenyan equities to continue through the remainder of the year.
The local bourse has traditionally attracted foreign investors through large and liquid companies, particularly banks and telecommunications giant Safaricom.
However, the limited number of technology-focused companies listed on the NSE has restricted local investors’ ability to directly participate in some of the global equity themes that have attracted significant capital in recent years.
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