Kenya to Introduce Exchange-Traded Funds, Market Regulator Says

The Nairobi Securities Exchange, Africa’s third-best performing bourse this year, will begin offering exchange-traded funds, the Capital Markets Authority said.

The funds will be offered “in an effort to increase the scope of capital market products available in Kenya,” the Nairobi-based regulator said in an e-mailed statement today.

An ETF holds products such as stocks, commodities or bonds and trades on a bourse, tracking the value of its assets. No timeframe was given for the start in Kenya, with the authority seeking a consultant to develop regulations for the funds.

The NSE All-Share Index rallied 23 percent this year. Ghana, Africa’s best performer, gained 47 percent. The West African nation began an exchange-traded fund linked to the price of gold last year. Absa Group’s NewGold ETF is also listed in Johannesburg, Botswana and Nigeria.

The Kenyan funds will target individual investors seeking an affordable way to buy into a diverse number of assets, Paul Muthaura, acting chief executive officer of the regulator, said in the statement.

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