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 confirmed to Reuters that the exchange is in the process of developing a new product aimed at expanding the variety of investment options in the local capital market.
The proposed exchange-traded fund (ETF) aims to track a collection of companies heavily involved in artificial intelligence. This initiative will enable investors to access the burgeoning sector thru a single, exchange-listed investment, eliminating the need to purchase individual global technology stocks.
“Our goal is to introduce a product to the market that accurately represents companies with direct exposure to AI,” Mwiti stated.
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 is actively pursuing diversification of its product offerings in an effort to enhance trading activity and draw in a larger pool of both 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.
