Kenya’s Nairobi Securities Exchange (NSE) plans to launch East Africa’s first exchange-traded fund (ETF) focused on artificial intelligence companies before the end of 2026, positioning the bourse to tap into surging global demand for AI investments.

According to NSE Chief Executive Officer, Frank Mwiti, the proposed fund would track a basket of companies with significant exposure to artificial intelligence, giving regional investors easier access to one of the world’s fastest-growing sectors.

“We want essentially to be able to bring a product to our market where the underlying basket is a reflection of companies that have a direct exposure to AI,” Mwiti said.

Microsoft, OpenAI and anthropic could feature

The ETF could include companies such as Microsoft, OpenAI, and Anthropic, providing investors with exposure to global AI leaders that are currently unavailable through Kenya’s stock market.

The NSE has long attracted international investors because of blue-chip companies such as Safaricom and the country’s profitable banking sector. However, investors seeking AI exposure have largely turned to overseas markets. “Kenyans are actually investing in foreign markets because of lack of product diversity here,” Mwiti said.

Exchange monitoring AI valuations

The exchange said it will carefully assess global market conditions before launching the fund, acknowledging growing concerns that soaring AI stock prices could be approaching bubble territory.

Mwiti said the exchange would delay the launch if necessary to avoid exposing investors to excessive market risk. “There is a vibe in the market that there might be a bubble around AI, so maybe there is also an aspect of waiting and seeing,” he said.

Cryptocurrency ETF also under review

Beyond artificial intelligence, the Nairobi Securities Exchange is evaluating a cryptocurrency ETF linked to Bitcoin, Ethereum, and Solana. The product could launch in 2027, subject to Kenya approving legislation governing virtual assets.

The initiative reflects the exchange’s broader strategy to diversify investment products and attract both domestic and international investors.

Record rally supports expansion

The proposed AI ETF comes as the Nairobi Securities Exchange enjoys one of its strongest rallies in decades. The market Capitalization recently surpassed KSh4 trillion ($31 billion) in market capitalization for the first time, supported by rising blue-chip share prices, easing interest rates, strong corporate earnings, new listings, stable inflation, and a resilient Kenyan shilling.

Globally, AI-focused ETFs have attracted substantial investor inflows in 2026 as demand for artificial intelligence accelerated across cloud computing, semiconductor manufacturing, software development, and data center infrastructure.

By introducing East Africa’s first AI-focused ETF, the Nairobi Securities Exchange aims to broaden investment opportunities, deepen Kenya’s capital markets, and position itself as a regional gateway to one of the world’s fastest-growing technology sectors.