The Capital Markets Authority (CMA) has approved the listing of the WSA Banking Index Exchange Traded Fund (ETF) on the Nairobi Securities Exchange (NSE), giving investors a new way to gain exposure to Kenya’s banking sector through a single investment product.
In an announcement on Tuesday, August 11, 2026, CMA stated that the approval makes the WSA Banking Index ETF the first locally domiciled ETF to be listed on the NSE.
The WSA Banking Index ETF will be issued by Wallstreet Africa Group Limited in partnership with Tradiam Asset Managers Limited, which will serve as the fund manager.
“As part of its strategy to diversify and deepen the capital markets, the Capital Markets Authority (CMA) has approved the listing of an innovative Index Exchange Traded Fund (ETF), WSA Banking Index ETF, on the Nairobi Securities Exchange (NSE). The CMA Board granted approval to list the Exchange Traded Fund on the NSE in line with the Capital Markets Policy Guidance Note on Exchange Traded Funds, 2015. This brings to three the number of ETFs listed on NSE,” read part of the statement.
CMA Gives Green Light to WSA Banking Index ETF Listing
CMA said the product is part of efforts to diversify investment options and deepen Kenya’s capital markets by expanding the range of products available to investors.
The ETF will give investors exposure to a diversified portfolio of listed banking stocks by tracking the performance of the NSE Banking Index.
The banks included in the index are Equity Group, KCB Group, Co-operative Bank, Absa Bank Kenya, NCBA Group, Standard Chartered Bank Kenya, Stanbic Holdings, I&M Group, Diamond Trust Bank, HF Group and BK Group.
About Its Roll-Out
CMA Chief Executive Officer Wyckliffe Shamiah said the product was expected to expand investment options and help deepen Kenya’s capital markets.
“The rollout of the innovative ETF product by the Wallstreet Africa Group is aligned to the Authority’s ambition of facilitating curation of innovative products in the capital markets space,” he said.
The ETF will operate as an open-ended scheme, with its units listed and traded on the NSE. Its value will fluctuate depending on the performance of the underlying banking shares.
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Investors will also face risks linked to equity market volatility, interest rate movements, the performance of constituent banks, regulatory changes and broader economic conditions.
The ETF will be denominated in Kenya Shillings, with its underlying banking shares also traded in shillings, meaning investors will not face foreign exchange risk from the fund’s underlying investments.
The WSA Banking Index ETF will become the third ETF listed on the NSE, joining the Absa NewGold ETF, which tracks physical gold prices, and the Satrix MSCI World Feeder ETF, which tracks large and mid-cap companies across developed global markets.
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How It Works
An Index Exchange Traded Fund (ETF) is an investment fund designed to track the performance of a specific market index.
Unlike a traditional mutual fund, an ETF is listed and traded on a stock exchange like an ordinary share.
For the WSA Banking Index ETF, the fund will track the NSE Banking Index by investing in shares of the banks that make up the index.
Investors can buy units of the ETF through a stockbroker or other authorized market intermediary once the units begin trading on the NSE.
As the value of the underlying banking shares changes, the value of the ETF is expected to move accordingly.
Key Features
- Tracks an index: The ETF aims to closely follow the performance of the NSE Banking Index rather than actively select individual stocks.
- Trades on the NSE: Investors can buy and sell ETF units on the Nairobi Securities Exchange during trading hours.
- Diversification: A single investment gives investors exposure to multiple banking stocks, spreading their investment across the sector.
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