The Nairobi Securities Exchange (NSE) plans to launch East Africa’s first exchange-traded fund (ETF) focused on artificial intelligence by the end of 2026. The aim is to give local investors easier access to some of the world’s fastest-growing technology companies.
The proposed fund will track a basket of global AI companies, potentially including Microsoft, OpenAI and Anthropic, according to NSE Chief Executive Frank Mwiti. The initiative is designed to meet growing demand from retail investors looking to tap into the global AI boom without having to trade on foreign exchanges.
Exchange-traded funds allow investors to buy a diversified portfolio of assets through a single security listed on a stock exchange. While AI-focused ETFs are common in developed markets such as the United States, none currently exists in East Africa.
Mwiti said the fund would most likely be denominated in Kenyan shillings to reduce foreign exchange risk for local investors. He added that the exchange is working with Kenya’s capital markets regulator to secure the approvals needed before the product can be launched.
The move comes as Kenya’s stock market enjoys one of its strongest years in recent history. The benchmark equity market has gained more than 30% in 2026, supported by stronger corporate earnings, stable inflation and a relatively steady currency. The total value of listed equities has climbed to about $31 billion, with the NSE expecting market capitalisation to reach nearly $38.7 billion by the end of the year.
Demand for technology-focused investments has also been growing among younger investors. Mwiti said many first-time investors are increasingly looking beyond traditional sectors such as manufacturing and banking in favour of companies driving advances in artificial intelligence.
The exchange, however, is proceeding cautiously. Mwiti acknowledged concerns that soaring valuations in AI-related stocks could signal the formation of a market bubble and said the NSE could delay the launch if it believes investors would face excessive risks from overheated markets.
Beyond the AI fund, the NSE is also considering launching a cryptocurrency ETF linked to Bitcoin, Ethereum and Solana once Kenya passes legislation governing digital assets. That product could debut next year if the regulatory framework is finalised. ([Reuters][1])
The planned AI ETF marks another step in the diversification of Africa’s capital markets, where exchanges are increasingly introducing new investment products to attract younger investors and deepen participation. If successful, the fund could position Nairobi as a regional hub for technology-focused investing while giving East African investors simpler access to one of the world’s fastest-growing sectors.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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