Kenya and Somalia took a step toward tighter financial ties after the Nairobi Securities Exchange (NSE) and the National Securities Exchange of Somalia signed an agreement to open the door for cross-border listings, shared technology and joint regulatory work.
East Africa still runs small and fragmented capital markets. Linking Nairobi’s mature exchange with Somalia’s young bourse gives the region a chance to widen deal flow, attract diaspora money and draw more companies into formal markets.
The deal creates a path for dual listings, joint investor-education programmes and development of Shariah-compliant products such as Sukuk. It also sets the stage for Somalia to move from informal business finance into a regulated market as it prepares for trading in early 2026.
Both exchanges will work under the East African Securities Exchanges Association to smooth regulation and trading standards. That helps investors compare risks across markets and gives issuers a single framework when raising capital across borders.
Somalia gains access to the NSE’s experience in listings, surveillance and post-trade systems. Kenya gets first-mover access to a frontier market where telecom, banking, agriculture and real estate firms are preparing to list.
The agreement also plays into Nairobi’s broader push to reinforce its position as a regional financial hub after years of thin trading volumes. For Somalia, building a formal exchange gives entrepreneurs an alternative to family capital and informal networks, and opens the door for diaspora investors to place money in regulated assets.
A joint working group will now begin translating the agreement into steps covering technology, market oversight and investor outreach.
What happens when more East African companies can list in more than one market?
Who benefits most when diaspora investors gain regulated entry points across borders?
