ETFs in Kenya 2026: How They Work and How to Invest

Kenya’s exchange-traded fund market has moved beyond its long-standing reliance on a single gold product. The Nairobi Securities Exchange now has three ETFs, giving investors exposure to physical gold, developed-market equities and Kenyan banking shares through securities that can be bought and sold on the exchange.

Absa NewGold, listed in 2017, was Kenya’s only ETF for eight years. The Satrix MSCI World Feeder ETF joined the market in 2025, opening access to large- and mid-cap companies across developed markets. In August 2026, the Capital Markets Authority approved the WSA Banking Index ETF, Kenya’s first locally domiciled ETF, bringing the NSE total to three.

For investors, the wider choice makes understanding how ETFs actually work more important. An ETF can simplify access to a portfolio, but it does not remove investment risk, guarantee liquidity or protect investors from losses.

What is an ETF?

An exchange-traded fund is an investment fund whose units trade on a securities exchange like shares. Instead of buying every security in a portfolio separately, an investor buys units in one fund that provides exposure to a defined basket, asset or investment strategy.

Many ETFs track an index. An index is a rules-based measure of a group of securities, with a methodology that determines what is included, how constituents are weighted and when the basket is reviewed. Other ETFs can track commodities or use actively managed strategies.

ETFs available in Kenya

The three ETFs currently on the NSE provide very different exposures: