Wall Street Africa is set to launch Kenya’s first locally domiciled exchange-traded fund (ETF), a move expected to widen access to the country’s banking sector and increase participation in the capital markets.
The WSA Banking ETF has received approval from the Capital Markets Authority (CMA) and is expected to list on the Nairobi Securities Exchange (NSE) in the fourth quarter. The fund will track the NSE Banking Index, giving investors exposure to a diversified portfolio of listed Kenyan banks through a single investment.
The initiative, founded by Erick Asuma and Andrew Barden, could make it easier for both retail and international investors to participate in one of Kenya’s strongest-performing sectors without having to buy shares in individual banks.
Making Banking Sector Investment More Accessible
The WSA Banking ETF will provide investors with exposure to all listed Kenyan banks included in the NSE Banking Index. This means investors can spread their investment across the sector instead of relying on the performance of one bank.
The fund will be managed by Tradiam Asset Managers and denominated in Kenyan shillings. This is expected to provide local investors with a more straightforward investment option while reducing exposure to foreign exchange movements that can affect investments held in foreign currencies.
Wall Street Africa founder Erick Asuma said the banking sector has been among the strongest performers on the NSE, creating an opportunity for a product that allows investors to participate in its growth through one investment vehicle.
The ETF is also expected to support wider participation in Kenya’s capital markets by giving smaller investors access to a professionally managed and diversified portfolio. Rather than requiring investors to research and purchase several individual banking stocks, the ETF brings the basket of shares together in one product.
Its launch comes as Kenyan equities have recorded strong gains. The NSE Banking Index has risen significantly, with institutions including I&M Group and Stanbic Holdings among the notable performers. Equity Group and KCB Group remain among the largest banking companies by market capitalisation, contributing to the sector’s importance within the wider market.
The broader NSE has also crossed the KES 4 trillion market capitalisation mark, providing a strong market environment for the introduction of the new fund.
Strengthening Kenya’s Capital Markets
The approval of the WSA Banking ETF also represents an important development for Kenya’s capital markets. Before its introduction, the NSE had two South African-domiciled ETFs, focused on gold and global equities. The WSA Banking ETF will therefore become the first ETF domiciled in Kenya and focused specifically on locally listed companies.
CMA Chief Executive Wyckliffe Shamiah said the product supports the regulator’s efforts to encourage innovation and provide investors with a wider range of financial instruments. The approval also reflects growing demand for investment products that offer greater diversification and easier access to the market.
Wall Street Africa is targeting between KES 5 billion and KES 7 billion in committed capital at launch, with retail investors expected to form an important part of the investor base.
The company expects the product to provide a transparent and cost-effective way for investors to gain exposure to Kenya’s banking sector while supporting deeper participation in the NSE.
Further details on the subscription process and timetable are expected before the planned fourth-quarter listing.
