Kenya is preparing to make history in Africa’s financial markets as the Nairobi Securities Exchange (NSE) plans to launch East Africa’s first exchange-traded fund (ETF) focused on artificial intelligence (AI) stocks before the end of 2026. The initiative is designed to give local investors direct exposure to some of the world’s fastest-growing AI companies while positioning Kenya as a leader in financial innovation across the region.
According to NSE Chief Executive Officer Frank Mwiti, the proposed AI ETF will track a basket of global companies with significant exposure to artificial intelligence. Industry leaders such as Microsoft, OpenAI, and Anthropic are among the firms expected to serve as reference points for the fund. While Kenyan investors can already invest in AI-related products through foreign markets, the new ETF aims to make those opportunities more accessible through the local stock exchange.
The move comes as demand for technology-focused investments continues to rise, particularly among Kenya’s younger generation of investors. Mwiti noted that many new investors are increasingly interested in emerging technologies rather than traditional industries such as manufacturing. The exchange also plans to price the ETF in Kenyan shillings, helping investors reduce foreign exchange risks while encouraging greater participation in the domestic market.
Despite the growing excitement surrounding artificial intelligence, the NSE says it will closely monitor global market conditions before launching the product. Concerns remain that soaring AI stock valuations could signal a market bubble, and the exchange is prepared to delay the launch if necessary to protect investors. At the same time, discussions are ongoing with Kenya’s market regulator, while plans are also being explored for a cryptocurrency ETF linked to Bitcoin, Ethereum, and Solana once the country’s virtual assets legislation is fully implemented.
Kenya’s stock market has enjoyed a strong performance in 2026, with equities rising by more than 30% thanks to robust corporate earnings, stable inflation, and a stronger currency. The value of listed equities has climbed to a record 4 trillion Kenyan shillings, and the NSE believes the market could reach 5 trillion shillings before the year ends. With digital investing becoming increasingly popular through platforms like M-Pesa, the planned AI ETF could mark a major milestone in attracting a new generation of investors and strengthening Kenya’s position as one of Africa’s leading financial hubs.
source: Reuters
