NAIROBI, Kenya, Aug 10 – The Nairobi Securities Exchange (NSE) is preparing to launch East Africa’s first exchange-traded fund (ETF) focused on artificial intelligence stocks before the end of 2026.
NSE Chief Executive Officer Frank Mwiti told Reuters that the exchange is developing the product as it seeks to widen the range of investment products available on the local capital market.
The proposed ETF will track a basket of companies with significant exposure to artificial intelligence, allowing investors to gain access to the sector through a single exchange-listed investment rather than buying individual global technology 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 said.
The planned product comes as global investor interest in AI continues to drive valuations and capital flows into technology companies developing semiconductors, cloud computing, data infrastructure and generative AI applications.
For Kenyan investors, the ETF could provide access to the sector as direct investment in international markets and individual foreign technology stocks remains less developed than in major financial centres.
The NSE has been seeking to diversify its product offering as it works to deepen trading activity and attract more retail and institutional investors.
The exchange currently offers equities, bonds, derivatives and other investment products, but has limited exposure to global technology themes.
Mwiti said the exchange expects the strength seen in Kenyan equities to persist through the remainder of the year.
The NSE has traditionally attracted foreign investors through large, liquid counters, particularly banks and telecommunications firm Safaricom.
However, the absence of technology-heavy listings has limited local investors’ ability to participate directly in some of the strongest global equity themes.
The AI-focused ETF will also test investor appetite for products linked to global technology sectors.
Its performance will depend on investor demand, pricing, liquidity and the performance of the underlying AI companies.
The launch will also come at a time when global technology stocks face questions over high valuations and whether the rapid growth in AI investment can translate into sustainable earnings.
