Kenya has risen to fifth place in the 2026 Absa Africa Financial Markets Index, supported by stronger stock and bond trading, new dollar-denominated securities on the Nairobi Securities Exchange (NSE) and improvements in market transparency.
Compiled by Absa Group and the Official Monetary and Financial Institutions Forum (OMFIF), the annual index assesses how effectively African countries can raise and move capital. Kenya recorded an average score of 65 out of 100, up from seventh place in the previous ranking and a recalculated score of 59 a decade ago.
Kenya scored 100 points in market transparency and the tax and regulatory environment categories. The report attributes its transparency performance to stronger credit-rating coverage, regular publication of financial and economic information, and established fiscal reporting frameworks.
The NSE has also introduced new investment products, including dollar-denominated securities from African Logistics Properties and Centum’s TRIFIC property fund. Together, the two vehicles raised approximately KSh7.68 billion before listing, broadening investment options available through the local exchange.
Market activity has increased significantly, with equity turnover reaching KSh322.2 billion in the six months to June 2026, compared with KSh145.4 billion recorded throughout 2025. Bond turnover also exceeded KSh1.7 trillion by June, reflecting continued activity in the fixed-income market.
However, Kenya scored 43 points in market depth and 30 in pension fund development, highlighting structural challenges that could limit the extent to which increased trading translates into financing for businesses.
Digital investment channels and new products are expanding access to capital markets. However, sustaining growth will require deeper markets, stronger institutional investment and broader participation from domestic investors.
Kenya’s fifth-place ranking reflects progress in transparency, regulation and market activity. Its next challenge is to strengthen long-term capital formation and ensure that financial market growth translates into wider financing opportunities for businesses.
