The Nairobi Securities Exchange has secured a landmark upgrade from FTSE Russell, earning a “Pass” rating on the Efficient Trading Mechanism criterion—a move that affirms Kenya’s capital-market reforms and strengthens the bourse’s position in global investment circles.
- •The recognition follows the FTSE Equity Country Classification Interim Review completed in September 2025, which elevated the NSE from “Restricted” to “Pass.”
- •The change reflects the successful rollout of single-share trading on the exchange from August 1 2025, a reform that removed long-standing barriers to participation and improved flexibility for both retail and institutional investors.
- •NSE Chief Executive Frank Mwiti called the development a powerful endorsement of the exchange’s modernization agenda.
“This FTSE Russell upgrade is a powerful endorsement of the modernization and reform agenda we’ve championed at NSE. It reflects our unwavering commitment to democratizing investment, boosting liquidity, and positioning Kenya as a globally competitive investment hub. We are building a market that is dynamic, transparent, and inclusive — one that attracts both local and international investors.”
The NSE Boss noted
What the FTSE Rating Means for Kenya
FTSE Russell’s Equity Country Classification Framework is one of the most closely tracked global benchmarks used by institutional investors.
- •Its Quality of Markets matrix measures trading efficiency, settlement standards, market transparency, and investor accessibility. A “Pass” rating indicates a market has reached international operational standards.
For Kenya, the upgrade signals that the NSE’s trading systems and settlement infrastructure now align with the expectations of global asset allocators.
- •The change follows years of gradual reforms aimed at improving market access, streamlining trade settlement, and broadening investor participation. Analysts view it as a key milestone in Kenya’s path toward eventual reclassification from a frontier market to a higher investment tier.
Stronger Signal to Global Investors
While the improvement applies to one criterion, it carries symbolic weight. Allowing single-share trading has reduced entry barriers for smaller investors and improved liquidity. The shift also communicates progress to foreign fund managers, who often reference FTSE Russell assessments before deploying capital in frontier markets.
- •The upgrade does not immediately alter Kenya’s market status, but it strengthens confidence in the country’s reform trajectory.
- •It also underscores the NSE’s strategic intent to modernize its trading infrastructure, deepen market liquidity, and attract sustained foreign participation—steps essential for positioning Kenya as the financial hub of East Africa.
