NSE Approves WSA Banking ETF Ahead of First Local ETF Listing
The Nairobi Securities Exchange (NSE) has granted conditional approval for the Wall Street Africa (WSA) Banking Index Exchange Traded Fund (ETF) to be listed and admitted to trading on the Main Investment Market Segment, bringing Kenya’s first locally domiciled ETF a step closer to the market.
The approval follows an earlier green light from the Capital Markets Authority (CMA), which in August approved the WSA Banking Index ETF for listing on the NSE. CMA said the product would become the first locally domiciled ETF in Kenya.
The NSE’s latest approval remains subject to WSA and its fund manager, Tradiam Asset Managers Limited, completing the remaining listing and operational requirements before a trading date can be confirmed.
The ETF is designed to track the performance of the NSE Banking Sector Index, giving investors exposure to a basket of listed banking shares through a single security rather than having to buy individual bank stocks.
According to the CMA, the fund is structured as an open-ended scheme whose units will be listed and traded on the NSE. It will seek to replicate the performance of the banking index by investing its assets in constituent banking-sector shares.
Banking stocks drive market rally
The ETF is heading towards launch at a time when banking counters have been among the strongest performers on the Nairobi bourse.
Data provided by WSA shows that the NSE Banking Sector Index had gained 46.73 per cent year-to-date by September 7, 2026, outperforming the NSE 10, NSE 20, NSE 25 and the NSE All Share Index, which had risen 42.97 per cent, 41.79 per cent, 40.78 per cent and 35.99 per cent respectively.
Listed banks have also become a major component of the Kenyan equities market, with their combined market capitalisation standing at about KSh1.85 trillion, equivalent to roughly 43.5 per cent of the NSE’s reported KSh4.26 trillion total market value.
I&M Group has been the strongest performer among the banking index constituents, gaining 93.17 per cent since the start of the year, followed by Diamond Trust Bank at 67.69 per cent and Co-operative Bank at 59.29 per cent.
Equity Group has risen 58.05 per cent, while BK Group and KCB Group have gained 53.53 per cent and 49.81 per cent respectively over the same period.
The strong share-price performance has coincided with improved earnings across the banking sector.
The banks represented in the index reported combined profit after tax of about KSh160 billion in the first half of 2026, according to figures supplied by WSA. Nine of the institutions recorded year-on-year growth in earnings.
Equity Group led the pack with KSh45.5 billion in profit after tax, followed by KCB Group with KSh36.9 billion and Co-operative Bank with KSh18 billion.
What investors get from the ETF
The WSA Banking ETF will allow investors to gain diversified exposure to the listed banking sector through one investment instrument.
Rather than selecting individual banking stocks, an investor buying units in the ETF will gain exposure to the underlying basket of shares tracked by the index.
CMA says the ETF will be denominated in Kenya shillings, with its underlying banking shares also traded in Kenya shillings. This means investors will not face foreign-exchange exposure arising from the fund’s underlying investments.
The regulator also notes that ETF prices can fluctuate depending on the performance of the underlying shares and factors including equity-market volatility, interest-rate movements, banks’ operating performance, regulatory developments and broader economic conditions.
ETFs generally allow investors to buy and sell units during trading hours on an exchange at market-determined prices. Kenya’s capital-markets regulator describes them as pooled investment vehicles that can provide exposure to a portfolio of shares, bonds, commodities or other assets.
Kenya seeks deeper capital markets
The WSA Banking ETF is part of efforts by regulators and market participants to broaden investment products available to Kenyan investors.
CMA said the approval was intended to diversify and deepen the country’s capital markets while responding to demand for innovative investment products. The authority noted that the WSA ETF would bring the number of ETFs listed on the NSE to three, alongside the Absa NewGold ETF and the Satrix MSCI World Feeder ETF.
The banking ETF, however, is distinct from those products because it is locally domiciled and focuses specifically on Kenya’s listed banking sector.
NSE Chief Executive Officer Frank Mwiti said the approval marked an important milestone for Kenya’s capital markets and supported the Exchange’s ambition of expanding investor participation and developing new investment solutions.
“Once listed, as Kenya’s first locally domiciled ETF, it will expand investor choice, strengthen the connection between capital and locally listed assets, and advance our 2025-2029 strategy to broaden participation and accelerate market development,” Mwiti said.
Wall Street Africa Co-Founder and Chief Executive Erick Asuma said the NSE approval moves the ETF closer to launch, with the company now working with Tradiam, the Exchange and other market participants to complete the outstanding requirements.
Listing date yet to be announced
The NSE has not yet announced a definitive trading date for the WSA Banking ETF.
WSA and Tradiam will now work through the remaining regulatory, technical and operational requirements before the Exchange makes a formal admission decision.
Once trading begins, the ETF will give investors a new way of participating in Kenya’s banking sector and could further expand the range of locally focused investment products available through the country’s capital markets.
The CMA has cautioned investors to understand the features and risks of investment products and to transact through licensed capital-markets intermediaries.
The official CMA confirmation is particularly useful here because it independently verifies the ETF’s regulatory approval, its structure, its local-domicile status and the index constituents.
