The Nairobi Securities Exchange (NSE) plans to launch East Africa’s first artificial intelligence (AI)-focused exchange-traded fund (ETF) before the end of 2026.
Speaking to Reuters on August 5, NSE Chief Executive Officer Frank Mwiti said the new investment plan will allow Kenyan investors to invest in some of the world’s leading AI companies through the local stock exchange.
Mwiti said the fund will invest in a group of companies that are driving AI development and innovation.
“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,” Frank Mwiti said.
The fund could include firms such as Microsoft, Anthropic and OpenAI as reference companies.
NSE Plans to Bring Global AI Stocks Closer to Kenyan Investors
Mwiti said the planned AI ETF is expected to be denominated in Kenyan shillings, helping investors avoid the foreign exchange risks associated with investing directly in overseas markets.
He noted that many Kenyans currently turn to foreign stock markets because the NSE offers limited investment products, adding that younger investors are increasingly seeking opportunities in technology companies.
“Instead of cement manufacturing, they want to do AI,” he said.
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What Does It Mean
An exchange-traded fund (ETF) is an investment product that holds shares in several companies, allowing investors to gain exposure to multiple firms through a single investment instead of buying individual stocks.
The NSE is currently engaging the Capital Markets Authority over the proposed AI ETF.
However, Mwiti said the exchange will take a cautious approach before launching the fund.
Beyond the AI ETF, Reuters reported that the NSE is also considering introducing a cryptocurrency ETF linked to digital assets such as Bitcoin, Ethereum and Solana. According to Mwiti, the product could be launched in 2027, subject to the passage of legislation regulating virtual assets in Kenya.
Also Read: Top 10 Most Valuable Companies Listed on NSE
Use of AI technology
The Nairobi Securities Exchange (NSE) said it had identified artificial intelligence (AI) as a key technology for modernizing Kenya’s capital markets under its 2025–2029 Strategic Plan.
In its strategy, the exchange said AI-powered market analytics had become a global standard among leading stock exchanges and that adopting the technology would help the NSE remain competitive in an increasingly digital financial market.
The NSE also said it would use AI alongside big data, blockchain and robotics to improve market analysis, enhance trading services and provide investors with better information for making investment decisions.
As part of the strategy, the exchange said it would partner with fintech and technology firms to develop application programming interfaces (APIs) that would enable data providers to access real-time market information.
The data would then be used to build analytical tools to help investors and traders make more informed decisions.
The NSE said the initiatives were expected to attract more local and international investors while expanding digital services in Kenya’s capital markets.
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