The listing of the first dollar denominated instruments on the Nairobi bourse and the boom in the equities and fixed income market have helped lift Kenya to fifth place in the ranking of how African countries easily raise and move capital.
The 2026 Africa Financial Markets Index, compiled by Absa bank and think tank OMFIF, moved Kenyan’s ranking from seventh behind South Africa, Mauritius, Namibia and Uganda.
The Nairobi Securities Exchange (NSE) marked the first listings of dollar denominated instruments earlier this year, following the addition of real estate investment trusts from African Logistics Properties (ALP) and Centum’s TRIFIC property fund which improved the market’s currency diversification.
Falling interest rates on government bonds and rising prices for the securities at the NSE helped boost trading as share prices surged amid increased activity at the bourse.
‘The country’s first dollar-denominated security was listed and recorded its highest-ever bond trading volumes during a broad market rally,’ the index report noted.
The index measures how easily countries can raise and move capital, examining stock and bond markets, access to foreign currency, pension ?savings, economic conditions and regulation.
Developing these markets can help businesses access financing beyond traditional bank loans and channel savings into infrastructure and other long-term investments.
Now in its 10th year, the index introduced a revised methodology measuring countries against fixed benchmarks of good practice rather than against one another. Historical scores were recalculated to allow comparisons.
Kenya raked in the most points on market transparency, tax and regulatory environment, scoring 100 points to tie with South Africa.
The market however trailed in depth and pension fund development with scores of 43 and 30 respectively.
The high score in transparency was attributed to strengthened credit-rating coverage, financial, monetary, fiscal and macroeconomic openness.
‘Kenya’s strength is the institutionalisation of transparency. The Public Finance Management Act anchors a predictable fiscal calendar, including the budget policy statement, quarterly budget reviews and debt management publications,’ the report notes.
‘Kenya also maintains structured engagements with Moody’s, S and P and Fitch, helping ensure rating agencies receive consistent and current sovereign information. The impact is visible in Kenya’s capital market resurgence as market capitalisation rose 27.8 percent in the first half of 2026.’
The Nairobi Securities Exchange (NSE) listed the US denominated ALP Industrial real estate investment trust (Reit) on March 11.
The property fund raised Sh3.81 billion ($29.5 million) from a restricted offer in 2025 ahead of the listing.
Centum’s TRIFIC raised Sh3.87 billion ($29.83 million) for the construction of an environmentally friendly commercial property in its special economic zone and listed the vehicle on the NSE at the end of June.
The two listings are first foreign currency instruments on the NSE and will pay dividends to shareholders in US dollars.
Activity on the NSE has further solidified Kenya’s financial market standing with market capitalisation rising past the Sh4 trillion mark for the first time on the back of increased share purchases and additional listings.
The Nairobi bourse got its first initial public offering in more than a decade from the listing of Kenya Pipeline Company (KPC) shares in March while additional listings have included the introduction of Family Bank.
Equity turnover in six months to June 2026 surpassed the entire 2025’s tally of Sh145.4 billion to stand at Sh322.2 billion on 9.5 billion shares traded.
Bonds market turnover has equally remained buoyant, having topped Sh1.7 trillion in June this year and is in line to surpass last year’s record of Sh2.71 trillion worth of trades.
Kenya’s scoring on the Absa Africa Financial Markets Index averaged 65 points out of 100, surpassing its mean score of 59 points from a decade earlier when the ranking started.
South Africa retained the top spot, followed by Mauritius and Namibia.
Cape Verde was the biggest mover, climbing six places to 13th on stronger foreign exchange reserves and new sustainable finance initiatives.
Ghana rose four places to sixth as falling inflation, stronger stock ?activity and improving economic conditions aided its recovery from a debt crisis.
Botswana and Nigeria each slipped two places to seventh and eighth respectively. Nigeria was hurt by weaker foreign exchange access and transparency scores, while Botswana suffered from rising inflation.