Nairobi: The Nairobi Securities Exchange Plc (NSE) and the National Securities Exchange of Somalia (NSES) have signed a Memorandum of Understanding (MoU) aimed at enhancing cooperation within East Africa’s capital markets. This agreement marks a significant step in the collaboration between the two nations, focusing on technology transfer, dual-listing frameworks, investor education, and the development of Shariah-compliant financial instruments such as Sukuk bonds.
According to Kenya News Agency, the partnership is set to integrate Somalia’s newly established securities exchange with one of Africa’s seasoned bourses. This collaboration underscores the shared ambition of both countries to mobilize private capital, attract diaspora investment, and foster economic resilience through a well-regulated and interconnected financial market.
Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, highlighted the importance of this collaboration in reinforcing NSE’s mission to establish Nairobi as a gateway for regional capital flows. He emphasized that the future of African capital markets lies in connectivity and expressed pride in advancing a more inclusive, efficient, and sustainable regional market that benefits investors and issuers across East Africa. Mwiti also acknowledged Somalia’s progress in establishing the NSES as a testament to bold leadership and vision.
The MoU comes at a crucial time as Somalia prepares to begin trading on the NSES by early 2026, targeting vital sectors like telecommunications, banking, energy, real estate, and agriculture. Yasin M. Ibar, Chief Executive Officer of the National Securities Exchange of Somalia, expressed optimism about creating a transparent, regulated marketplace that offers opportunities to all, especially given the long-standing informal trust networks that Somali entrepreneurs have relied upon.
The collaboration provides NSES with access to NSE’s technical capabilities and experience in listing, surveillance, and post-trade systems, while offering NSE a new frontier for regional listings and diaspora engagement. The exchanges aim to demonstrate how African cooperation can unlock liquidity, enhance transparency, and drive inclusive economic growth.
For Kenya, the agreement strengthens Nairobi’s role as a regional financial hub, aligning with NSE’s strategic plan to expand its reach through partnerships that foster innovation and sustainability across African markets. A joint working committee will be established to operationalize the partnership, focusing on regulatory cooperation, market surveillance, and joint investor-education initiatives.
Kenya and Somalia’s deep-rooted economic and cultural ties continue to strengthen regional integration, with communities of Somali heritage playing a crucial role in Kenya’s social and economic landscape. The partnership builds on these connections to foster shared prosperity and enable investors and diaspora communities from both nations to confidently participate in each other’s markets.
By promoting stability and enhancing trade within the Horn of Africa and East Africa, the partnership supports a stronger, interconnected regional economy. It aligns with the African Continental Free Trade Area (AfCFTA) vision of seamless trade and investment across the continent, positioning Kenya and Somalia as leaders in advancing regional economic integration. The partnership also commits both exchanges to align with East African Securities Exchanges Association (EASEA) protocols to promote seamless trade and transparent governance across borders.
