Kenya's capital markets have reached a historic milestone following regulatory approval of the Wall Street Africa Banking Exchange Traded Fund (WSA Banking ETF), which is set to become the country's first locally domiciled Exchange Traded Fund (ETF).

The Capital Markets Authority (CMA) has approved the WSA Banking ETF subject to the Nairobi Securities Exchange (NSE) approval for the admission of the ETF to the Main Investment Market Segment (MIMS), upon completion of the remaining pre-listing requirements.

The WSA Banking ETF is issued by Wall Street Africa (WSA) in partnership with Tradiam Asset Managers, which will serve as the Fund Manager. The ETF will track the performance of Kenya's listed banking sector, providing investors with a simple, transparent and cost-effective way to gain diversified exposure to one of the Nairobi Securities Exchange's most liquid and consistently outperforming sectors through a single listed security.

What it Means for Kenya's Markets

The WSA Banking ETF will become the first ETF created and domiciled in Kenya. The only ETFs currently listed on the NSE are South African funds tracking gold and developed-market equities.

The launch marks an important step in the evolution of Kenya's capital markets by introducing a low-cost investment vehicle that broadens access to the country's banking sector for both retail and institutional investors while supporting the continued development of the local investment ecosystem.

Strong Market Momentum

The approval comes as Kenyan equities continue their strong performance. As of the end of June 2026, the NSE had risen 33% year-to-date, ranking number four among the world's best performing markets only behind South Korea, Nigeria and Japan. The Nairobi Securities Exchange recently crossed KSh4 trillion in total valuation for the first time, less than nine months after crossing KSh3 trillion, as Safaricom and listed banks powered one of the fastest expansions in market value on record.

As of July 2026, the NSE Banking Index has led the market with a 30.9% return in 2026, outperforming bonds, the NSE 10, NSE 20, NSE 25 and the Nairobi All Share Index. The sector's strength is further reinforced by global recognition.

In the latest The Banker Top 1,000 World Banks rankings, KCB Group, Equity Bank and Co-operative Bank were all ranked among Africa's top 25 banks by Tier 1 capital, underscoring Kenya's position as East Africa's leading banking hub.

Issuer Comments

"The banking sector has consistently been one of the best-performing segments of the Exchange and ranked among the world's best performing in terms of return on investment. The WSA Banking ETF gives both local and international investors a simple, transparent and cost-effective way to participate in that growth story."

Erick AsumaCo-Founder & CEO, Wall Street Africa Inc

Fund Manager Comments

"We are delighted to have received the necessary regulatory approvals and appreciate the confidence shown by both the Capital Markets Authority and the Nairobi Securities Exchange. Our focus is now on completing the remaining operational and listing requirements ahead of the anticipated launch in Q4 of 2026. We believe the WSA Banking ETF will provide investors with an efficient vehicle to access one of Kenya's strongest and most liquid sectors."

Eric RuenjiFounder, Tradiam Asset Managers

Regulator Comments

"The approval of the WSA Banking ETF marks an important milestone in the continued development of Kenya's capital markets. As the first locally domiciled exchange-traded fund, the product will broaden the range of regulated investment options available to investors, enhance product diversity and provide an efficient channel for diversified participation in the listed banking sector. The Authority remains committed to supporting responsible market innovation while maintaining robust standards of investor protection, transparency and regulatory compliance."

Wyckliffe ShamiahChief Executive Officer, Capital Markets Authority

A Sector-Wide Rally Across the Board

The strength behind the WSA Banking ETF is broad-based rather than concentrated in a handful of stocks. Since its launch in October 2025, the NSE Banking Sector Index has gained 62%, with strong performance recorded across nearly every listed lender.

Listing Timeline

The WSA Banking ETF is expected to list on the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange in Q4 2026, subject to the completion of the remaining regulatory and operational requirements. A final Information Memorandum, subscription timetable and listing details will be published ahead of the listing.