Kenya’s Nairobi Securities Exchange aims to introduce an ETF tracking AI stocks, targeting local investor demand amid global rally concerns.
Kenya’s Nairobi Securities Exchange will launch East Africa’s first exchange-traded fund focused on artificial intelligence stocks before the end of 2024. The ETF will track companies with direct exposure to AI, including global firms like Microsoft and OpenAI, according to the exchange’s CEO.
The move responds to growing demand from younger investors seeking alternatives to traditional sectors like manufacturing. While Kenyan investors can access AI products abroad, the NSE aims to simplify local trading. The exchange currently lacks AI-focused investment options despite attracting foreign equity inflows.
The CEO warned of potential bubble risks in the global AI rally and said the launch could be delayed if market conditions appear overheated. The NSE will monitor the sector closely to avoid exposing investors to excessive volatility.