Kenya’s First Local ETF Will Let Investors Buy 11 Bank Stocks in One Trade

Kenya’s capital market is evolving. The Capital Markets Authority has approved the WSA Banking ETF, which is expected to be listed on the Nairobi Securities Exchange (NSE) later this year, subject to NSE approval and completion of the remaining pre-listing requirements.

The fund, issued by Wallstreet Africa Group in partnership with Tradiam Asset Managers, will become the third ETF on the NSE. When it goes live in the fourth quarter of this year, it will join the Absa NewGold ETF and the Satric MSCI World Feeder WFT. But unlike the other two, the WSA Banking ETF is denominated in Kenyan shillings (KES) and built from shares already traded on the NSE. 

This approval comes as aggregate profits in Kenyan banking stocks have more than tripled since 2015. The new ETF invites retail investors to benefit from the growing market, while ensuring their investment is diversified.

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About the WSA Banking ETF

The new fund will provide investors exposure to the entire NSE Banking Index in one tradable security. It will track 11 constituent banks: Equity Group, KCB Group, Co-operative Bank, Absa Bank Kenya, NCBA Group, Standard Chartered Bank Kenya, Stanbic Holdings, I&M Group, Diamond Trust Bank, HF Group and BK Group. 

The mechanics of the ETF work the same as buying any listed stock. Investors purchase the ETF units on the NSE. The value of those units fluctuates in line with the combined performance of the underlying bank shares. Tradiam Asset Managers will run day-to-day fund operations, while Wallstreet Africa Group acts as the issuer. 

Wallstreet Africa Founder, Erick Asuma, said the company is aiming for up to KES 7 billion (approximately $54 million) in committed capital at launch. He also expects retail investors to make up a meaningful share of the fund’s base over time. 

Meanwhile, CMA CEO Wyckliffe Shamiah framed the approval of WSA as part of a larger push to strengthen Kenya’s capital markets. “The rollout of the innovative ETF product by the Wallstreet Africa Group is aligned to the Authority’s ambition of facilitating curation of innovative products in the capital markets space,” Shamiah said. 

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Growth in the Kenyan Banking Sector

The WSA ETF approval comes at a time when Kenyan banking stocks have been on an extended run. The NSE Banking Index has gained 62% since its launch in October 2025, and has returned 30.9% through the first half of this year, according to Kenyan Wallstreet. The whole NSE followed suit, gaining about a third over the past year. Banks now represent the single largest slice of the market, roughly 41% of the entire NSE.

Individual banks led the rally: I&M Holdings gained 60% YTD, Stanbic Holdings 48%, Co-operative Bank 46%, BK Group 41% and Absa Bank Kenya 35%. The 11 banks listed in the WSA Banking ETF shared a combined KES 287.73 billion (over $2.2 billion) profit after tax in 2025. This was up from 17.3% in 2024. 

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Signs of a Maturing Exchange

While the approval of this ETF presents a huge opportunity for Kenyan investors, it also points to a larger trend. “Having an exchange-traded fund that is locally domiciled and in local currency means that we’re becoming a more mature exchange on the continent, and even in the world,” explained Nikita Nyangoro, former financial advisor and risk associate at VALE Insurance Partners. “They have offered a couple of ETFs before, but trading in Kenyan shillings means Kenyan investors also won’t be exposed to currency exchange risk when they invest in this product, which is another positive.” 

This particularly matters in a region where many exchange-traded products have historically tracked foreign or global assets. Because the WSA Banking ETF and its underlying Kenyan-listed shares are denominated in Kenyan shillings, local investors would not have the same foreign exchange exposure associated with ETFs holding foreign assets. However, the ETF remains subject to other investment risks, including movements in the underlying bank stocks.

Main Image: Eric Asuma, founder of Wall Street Africa