Kenya’s capital markets received a major boost after the Nairobi Securities Exchange (NSE) was upgraded by the FTSE Russell Index Governance Board. Nairobi Securities Exchange (NSE) CEO Frank Mwiti speaking during a listing in Nairobi. Photo: NSE PLC. Source: Twitter The board upgraded the NSE from ‘restricted’ to ‘pass’ on the Efficient Trading Mechanism criterion. NSE recognised for modernisation and reforms The upgrade, announced following the FTSE Equity Country Classification Interim Review conducted in September 2025, recognised the NSE’s ongoing modernisation efforts and strengthens Kenya’s position as a globally competitive investment destination.
According to the NSE CEO Frank Mwiti, this is a significant milestone and an endorsement of the modernisation taken in the country’s financial market reforms “We have achieved yet another historic milestone and game-changer for Kenya’s capital markets. I am proud to announce that NSE has secured the FTSE Russell upgrade from Restricted to Pass on the Efficient Trading Mechanism criterion by FTSE Russell, a powerful endorsement of our modernisation and reform journey. This is more than recognition, it is a clear signal to the world that we are building Kenya’s capital markets to be open, modern, and ready for the next era of global and regional investments,” Mwiti said. What is the impact of the NSE upgrade? The improvement comes after a key policy shift that allows securities listed on the NSE to be traded in multiples of one share, effective August 1, 2025, a move expected to deepen market participation and boost liquidity.
The FTSE Equity Country Classification process is one of the most respected global benchmarks. The process assesses markets against comprehensive technical standards while incorporating feedback from institutional investors; therefore, the NSE’s upgraded status signals growing confidence in Kenya’s financial infrastructure. According to the statement by NSE, the upgrade puts the country firmly on the radar of global asset allocators and international fund managers. FTSE Russell’s globally trusted indexes are used for portfolio construction, risk management, and asset allocation by investors worldwide. Kenya’s inclusion under the pass category is therefore viewed as a strategic win, one that could unlock new capital inflows and a surge in foreign investors as well as enhance liquidity. Listed companies on the NSE In other news, Kenya’s stock market continued its bullish run in 2025, as NSE gained about KSh 800 billion in investor wealth since March, pushing total market capitalisation beyond KSh 2.7 trillion.
According to the Central Depository & Settlement Corporation (CDSC), there are 62 listed companies spanning agriculture, banking, manufacturing, energy, and real estate. Safaricom remains Kenya’s most valuable company with a market cap of over KSh 1.16 trillion, followed by Equity Group at KSh 207.55 billion and EABL at KSh 174.72 billion. The NSE, under CEO Mwiti, recorded three new listings, including Shri Krishana Overseas Ltd, and launched the NSE Strategy 2025–2029 to grow active retail investors to 9 million. The top five most expensive stocks are BAT Kenya (KSh 444), Kakuzi (KSh 423), Jubilee Holdings (KSh 325), Kapchorua Tea (KSh 322), and Standard Chartered (KSh 319).
By Elijah Ntongai
