The Nairobi Securities Exchange (NSE) is setting the stage for a dramatic transformation, aiming to onboard an ambitious 9 million new retail investors by 2029. Spearheaded by CEO Frank Mwiti, this aggressive 2025-2029 strategy is built on democratizing wealth creation for everyday Kenyans through direct trading access, diversified products like fractional shares and ETFs, and a vast expansion of agency networks across every county.

• This forward-looking approach seeks to broaden market participation and unlock new liquidity, promising a vibrant future for Kenya's capital markets.

• The new CEO joined the exchange at a point when it was struggling amid low investor confidence.

• This progressive shift faces formidable resistance from a powerful segment of the market: traditional stockbrokers.

At the end of 2024, the exchange reported a remarkable 500% surge in profit after tax, reaching KSh 116.3 million. The bond market achieved a historic milestone, with turnover crossing the KSh 1 trillion mark for the first time, hitting KSh 1.7 trillion at the end of 2024.

The Kenya Association of Stock Brokers and Investment Banks (KASIB), representing members who collectively hold approximately 20% of the NSE's shares, vehemently opposes the introduction of Direct Market Access (DMA). They view DMA as a direct threat to their long-standing business model, fearing significant disintermediation and a loss of commission-based revenues. This standoff has escalated to accusations of poor leadership and procedural irregularities, with KASIB formally calling for a vote of no confidence against Frank Mwiti.

The NSE’s Direct Market Access (DMA) Guidelines were formally approved by the Capital Markets Authority (CMA) in October 2019. These comprehensive guidelines clearly stipulate the involvement and responsibilities of licensed Trading Participants (brokers) in facilitating DMA. Ideally, the NSE’s plans to promote DMA do not imply bypassing brokers entirely; rather, they envision an enhanced framework where brokers play a key role in enabling clients to directly input orders into the trading system, while still maintaining their critical oversight and regulatory responsibilities. This framework ensures that while investors gain more direct control, the necessary professional and regulatory safeguards remain in place.

The current conflict at the NSE draws striking parallels to the initial resistance faced by M-Pesa from commercial banks when it first launched in 2007. Despite fierce opposition and accusations of operating outside its mandate, M-Pesa ultimately revolutionized financial inclusion in Kenya, becoming a massive revenue driver for Safaricom, banks themselves, and profoundly reshaping the economy. Should brokers succeed in stifling the NSE's current momentum, Kenya's capital markets risk reverting to limited retail participation and stagnant growth. The outcome of this battle will determine whether the NSE can achieve its own "M-Pesa moment," unlocking unprecedented participation and liquidity for the benefit of all Kenyans.

Read more about this on The Kenyan Wall Street

Access Bank Completes Acquisition of National Bank of Kenya from KCB

Access Bank Plc has completed its acquisition of National Bank of Kenya (NBK) from KCB Group Plc, with the deal finalizing on May 30, 2025, following approvals from Kenyan regulatory bodies. This marks Access Bank's second acquisition in Kenya, further solidifying the African financial giant's presence in the region, despite facing some regulatory challenges during the process. The bank plans a gradual integration of NBK to streamline operations and enhance customer experience, aligning with its broader goal of connecting African businesses to global markets.

Read more about this acquisition: Access Bank Completes Acquisition of National Bank of Kenya

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