The Nairobi Securities Exchange (NSE) plans to launch East Africa’s first artificial intelligence focused exchange traded fund (ETF) before the end of the year, as it seeks to attract growing interest from younger investors.
NSE Chief Executive Frank Mwiti said the proposed fund would track global companies with strong exposure to AI, including firms such as Microsoft, OpenAI and Anthropic.
Mwiti said the exchange wants to give Kenyan investors easier access to AI related investments without having to trade on foreign markets. The ETF is expected to be denominated in Kenyan shillings to reduce foreign exchange risk.
The exchange is consulting regulators on the proposal and is also considering launching a cryptocurrency ETF based on Bitcoin, Ethereum and Solana next year, subject to the passage of virtual asset legislation.
Mwiti acknowledged concerns about a possible AI stock market bubble and said the exchange could delay the launch if market conditions appear overheated.
Kenya’s stock market has risen more than 30% this year, lifting the value of listed equities to a record 4 trillion shillings ($30.95 billion). Mwiti expects market capitalization to reach 5 trillion shillings by the end of the year.
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