CMA APPROVES INNOVATIVE EXCHANGE TRADED FUND TO DIVERSIFY AND DEEPEN THE CAPITAL MARKETS
Nairobi, 11 August 2026…… As part of its strategy to diversify and deepen the capital markets, the Capital Markets Authority (CMA) has approved the listing of an innovative Index Exchange Traded Fund (ETF), WSA Banking Index ETF, on the Nairobi Securities Exchange (NSE).
The CMA Board granted approval to list the Exchange Traded Fund on the NSE in line with the Capital Markets Policy Guidance Note on Exchange Traded Funds, 2015. This brings to three the number of ETFs listed on NSE.The other two ETFs currently listed on the Nairobi Securities Exchange (NSE) are; Absa NewGold ETF, which tracks the price of physical gold, and the Satrix MSCI World Feeder ETF, which tracks large and mid-cap global equities across developed markets.
The WSA Banking Index ETF is the first locally-domiciled ETF, and is issued by the Wallstreet Africa Group Limited, the company behind the Kenyan Wall Street and the Wall Street Africa ecosystem, a financial media company and fintech business. The WSA Banking ETF is issued by Wall Street Africa in partnership with Tradiam Asset Managers Limited, who will serve as the Fund Manager.
The innovative ETF will provide investors with exposure to the performance of a diversified portfolio of listed banking sector equities. The ETF is structured as an open-ended scheme whose units are listed and traded on the NSE. The ETF will seek to replicate, as closely as practicable, the performance of the designated NSE Banking Index by investing all its assets in the constituent banking sector shares comprising the Index.
The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, observed; ‘’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. This is expected to address the growing demand for innovative products, thereby allowing investors to diversify their portfolios and deepening the capital markets through an expanded scope of capital market products’’.
The ETF aims to deliver returns corresponding to the performance of the NSE Banking index sector, which draws its constituents from all companies listed on the NSE under the Banking Sector. These are; 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 value of the ETF units will fluctuate in line with changes in the market value of the underlying banking sector shares and may be affected by factors including equity market volatility, interest rate movements, changes in the operating performance of constituent banks, regulatory developments, and broader macroeconomic conditions.
The ETF is denominated in Kenya Shillings, and the underlying banking sector shares are listed and traded in Kenya Shillings on the NSE. Investors will therefore not be exposed to foreign exchange risks arising from the Fund’s underlying investments. The ETF units will be listed and traded on NSE. Liquidity in the secondary market may be supported by appointed Market Makers or Authorised Participants, who facilitate the creation and redemption of ETF units and help maintain orderly trading.
ENDS
BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Assistant Director Corporate Communications & International Affairs on amwangi@cma.or.ke
