Kenya’s Capital Markets Authority (CMA) has approved a new investment fund from Wall Street Africa (WSA), a Nairobi-based financial media and fintech startup, that will allow investors to buy into a group of listed banks in a single investment.
The WSA Banking exchange-traded fund (ETF) will hold shares in banks listed on the Nairobi Securities Exchange (NSE). According to CMA, it will be Kenya’s first locally domiciled exchange-traded fund and is expected to list in the fourth quarter.
The launch comes as Kenyan bank stocks lead a strong rally in the country’s equities market, with the NSE Banking Index up 30.9% this year through July. The new ETF allows investors to gain exposure to that broader banking rally through a single investment rather than picking individual stocks.
WSA founder Erick Asuma told TechCabal on Tuesday that the company is targeting KES 5 billion to KES 7 billion ($38.6 million to $54.1 million) in committed capital at launch, with the fund expected to attract mainly retail investors over time.
Originally published by TechCabal.