The Nairobi Securities Exchange(NSE) has successfully done a live link of its trading infrastructure with Absa Bank South Africa, allowing the giant financial institution to execute trades on its platform through Absa Securities Limited, a local licensed trading participant.
The NSE said the successful go-live enhances its use of smart technology to revitalise the bourse, drive growth, deepen liquidity and improve efficiency of the capital markets ecosystem.
The successful go-live aligns with the Nairobi Securities Exchange’s strategic objective of revitalizing markets and harnessing technology to drive growth, deepen liquidity, and improve the efficiency of the capital markets ecosystem.
“This is not only a win for the Nairobi Securities Exchange, but for the broader region. The successful deployment of Sponsored Access by Absa is a powerful signal of investor confidence and technological readiness. It speaks directly to our strategic agenda to revitalize the market and leverage technology to attract a broader range of participants, including regional and global investors,” said Frank Mwiti, NSE Chief Executive Officer.
The sponsored access arrangements allow qualifying participants to route their orders to the NSE’s trading system through a sponsoring broker, under a tightly controlled and compliant framework. This model enhances speed, transparency, and operational efficiency while maintaining regulatory oversight.
“This milestone reflects Absa’s commitment to advancing market connectivity and innovation across the continent. Through our Sponsored Access arrangement, we are helping to create more efficient and transparent pathways for investors to participate in African capital markets. It is a tangible example of how regional collaboration and technology can deepen liquidity and unlock new opportunities for growth.”, said Merlin Rajah, Head of Electronic Sales at Absa Capital Investment Bank.
Nairobi Securities Exchange game plan on regional access
The NSE said it intends to advance innovation, expand cross-border participation, and create a dynamic, technology-enabled marketplace that supports sustainable investment and economic growth.
The Nairobi bourse is expected to leverage the huge network that Absa Bank South Africa offers. Absa Group Limited is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services groups.
Absa Bank South Africa already has a significant presence at the Nairobi Securities Exchange through several listings.
The Absa Gold-backed Exchange Traded Funds(ETF) listed at the NSE three years ago. Absa has since doubled the units of the ETF to meet growing investor demand at the NSE, especially for savvy institutions and individuals seeking for safe-haven assets.
The Absa ETF share price has been on an upward trend, appreciating with a 15.47% year-to-date return.
Absa Bank South Africa, through its local subsidiary Absa Bank Kenya, also played a critical advisory role on the secondary listing of the Satrix’s MSCI World Feeder EFT on the Nairobi Securities Exchange. This ETF allows NSE investors to access global equity markets. The Satrix MSCI Feeder ETF tracks the MSCI World index, offering diversified exposure of local investors to more developed global markets.
Absa Bank South Africa, through its Kenyan subsidiary, collaborates with the Nairobi Securities Exchange on initiatives such as listing of additional actively managed certificates(ABAM1) on the Johannesburg Stock Exchange.
Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance.
Absa Group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia and has insurance operations in Kenya and South Africa.
Absa also has offices in the People’s Republic of China, Namibia, Nigeria and the United States, as well as securities entities in the United Kingdom and the United States, along with technology support colleagues in the Czech Republic.
NSE offers a world-class trading facility that allows South African firms including Absa Bank Kenya Plc and Sanlam Kenya, to trade and gain exposure to Kenya’s Capital Markets.
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