Kenya’s Capital Markets Authority (CMA) has granted regulatory approval for the listing of the WSA Banking Index ETF on the Nairobi Securities Exchange (NSE). Issued by Wall Street Africa Group in partnership with Tradiam Asset Managers, the fund marks Kenya’s first locally domiciled Exchange Traded Fund (ETF) and the third ETF to list on the bourse, joining the Absa NewGold ETF and Satrix MSCI World Feeder ETF.
Scheduled for listing on the NSE Main Investment Market Segment in Q4 2026, the open-ended scheme will replicate the NSE Banking Index. This structure allows investors to access a diversified basket of Kenyan financial institutions through a single, KES-denominated transaction, eliminating foreign exchange risk for domestic market participants.
Surging Banking Valuations and Record NSE Growth
The regulatory approval coincides with historic momentum on the NSE, which recently surpassed KSh 4 trillion in total market capitalization for the first time. The banking sector serves as the market's single largest asset class, commanding KSh 1.64 trillion—equivalent to 41% of the entire exchange—ahead of telecommunications giant Safaricom at KSh 1.43 trillion.
The NSE Banking Sector Index has demonstrated strong outperformance, surging 62% since its launch in October 2025 and returning 30.9% through July 2026. Individual equity gains across constituent banks have been significant year-to-date:
- I&M Group: +60% YTD
- Stanbic Holdings: +48% YTD
- Co-operative Bank of Kenya: +46% YTD
- BK Group: +41% YTD
- Absa Bank Kenya: +35% YTD
- Diamond Trust Bank Kenya: +35% YTD
Decade of Profit Expansion & ETF Constituents
Strong valuation gains reflect significant earnings growth across the banking sector. The 11 constituent banking groups generated a combined profit after tax of KSh 287.73 billion in 2025, up 17.3% from KSh 245.38 billion in 2024. Over a ten-year horizon, aggregate banking sector earnings have expanded by 222%, rising from KSh 89.42 billion in 2015 and rebounding dramatically from a pandemic low of KSh 87.64 billion in 2020.
The WSA Banking Index ETF will initially track 11 listed counters: 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. Newly listed Family Bank will become eligible for index inclusion upon completing six months of secondary market trading on the exchange.
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