Kenya's Nairobi Securities Exchange plans to launch East Africa's first AI-focused exchange-traded fund before the end of 2026, pending regulatory approval, CEO Frank Mwiti said in an interview.
The ETF would track companies with significant exposure to artificial intelligence, according to reporting on the plan. The NSE has not disclosed the fund's size, fee structure, or specific constituent holdings. Approval from Kenya's Capital Markets Authority remains a prerequisite for launch.
The NSE operates East Africa's largest securities market by trading volume and market capitalization. The exchange has listed 67 companies as of mid-2026 and serves as the primary venue for equity and debt trading across Kenya, Uganda, and Tanzania. An AI-focused ETF would be the first of its kind in the broader East African region, where equity market infrastructure has expanded significantly over the past five years.
AI-focused ETFs have grown in developed markets as institutional investors seek structured exposure to the sector without direct stock picking. The Invesco QQQ ETF, which tracks tech-heavy Nasdaq-100 constituents including major AI developers, manages over $200 billion in assets globally. Regional financial markets are increasingly launching thematic funds to compete for retail and institutional capital.
The timing coincides with growing institutional interest in African technology companies. Kenya's tech sector, particularly in fintech, has attracted venture capital and private equity investment. An AI-themed fund would require NSE-listed companies with demonstrable AI business lines or revenue streams.
African exchanges are modernizing product offerings. The Johannesburg Stock Exchange and Nigerian Exchange have expanded their ETF portfolios in recent years. Regulatory frameworks governing ETFs in Kenya remain relatively nascent compared to developed markets, making pre-launch approval a substantive hurdle.
Mwiti's timeline of year-end 2026 for launch assumes the Capital Markets Authority completes its review within months. The exchange would need to select index methodology, set expense ratios, and establish distribution partnerships with brokers and custodians. The NSE has not announced a public consultation or prospectus filing date.
