Kenya’s Nairobi Securities Exchange is creating East Africa’s first AI stocks-focused exchange-traded fund (ETF), which it plans to offer to investors before 2026-end, CEO Frank Mwiti said.
While the Nairobi market attracts a sizeable proportion of foreign equity investors due to its profitable banking sector, it does not currently offer exposure to AI 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 told Reuters.
“Companies like Microsoft, Anthropic, and OpenAI could be used as references for the ETF,” he added further.
“Kenyan investors can already access AI-related products abroad, but the NSE wants to make it easier for them to trade locally,” Mwiti said, adding there was demand for an AI product especially from new, younger investors.
“Instead of cement manufacturing… they want to do AI,” he remarked further.
2026’s AI boom has driven stock markets to record highs. However, the surge has also stoked concerns about a bubble that could drag stocks down sharply if it pops. Paying attention to the concerns, the Nairobi bourse will study the global AI rally carefully and if needed, will delay the ETF launch to ensure investors are not exposed to an “overdone move.”
“There is… a vibe in the market that there might be a bubble around AI, so maybe there is also an aspect of waiting and seeing,” Mwiti observed.
ETFs are funds with underlying assets like listed shares, which trade on exchanges like ordinary equities, offering investors exposure to a particular asset class.
“The planned AI fund will most likely be denominated in the Kenyan shilling to limit foreign exchange risks. Kenyans are actually investing in foreign markets because of lack of product diversity here. The exchange is discussing the proposal with the market regulator,” Mwiti continued.
Nairobi Securities Exchange is also considering a cryptocurrency ETF based on Bitcoin, Ethereum and Solana, which could be launched in 2027 after the passage of a law governing virtual assets in Kenya.
“Many African capital markets do not yet have AI ETFs, which are available in big developed markets such as the United States. Demand for such a product in Kenya is not just due to booming demand for shares in the likes of SK Hynix or Samsung, but also to the country’s increasingly investment-savvy young population,” Mwiti remarked.
Nairobi Securities Exchange’s crypto ETF-related plans come amid the booming equity markets in the African nation. The rally has gone well over 30% so far in 2026.
Talking in detail about Kenya’s equity market boom, Mwiti attributed the phenomenon to strong company earnings and stable inflation and currency markets, which have combined to push the value of the equities segment to a record 4 trillion shillings (USD 30.95 billion).