NSE Signs MoU With Somalia To advance Cross-border Investment

The Nairobi Securities Exchange Plc (NSE) of Kenya and the National Securities Exchange of Somalia (NSES) have today signed a landmark Memorandum of Understanding (MoU) to deepen cooperation in East Africa’s capital-markets ecosystem. The agreement supports a shared vision of promoting cross-border listings, investor access, capacity-building and regulatory harmonisation across the region.

The partnership marks a new chapter for East Africa’s financial ecosystem, linking Somalia’s newly established securities exchange with one of Africa’s most experienced bourses. It reflects both nations’ shared ambition to mobilise private capital, attract diaspora investment, and enhance the region’s economic resilience through a well-regulated and interconnected financial market.

Kenya and Somalia share deep-rooted economic and cultural ties that continue to strengthen regional integration. Communities of Somali heritage are an essential part of Kenya’s social and economic landscape, contributing significantly to commerce in cities such as Nairobi and Garissa. At the same time, Kenyan businesses are expanding their presence in Somalia’s finance and consumer sectors, creating opportunities for growth on both sides. This MoU builds on these connections to foster shared prosperity, enabling investors and diaspora communities from both nations to participate confidently in each other’s markets and drive inclusive development across the region.

By promoting stability and enhancing trade within the Horn of Africa and East Africa, this partnership supports a stronger, more interconnected regional economy and aligns with the African Continental Free Trade Area (AfCFTA) vision of seamless trade and investment across the continent. As a model for cross-border collaboration under AfCFTA, this MoU positions Kenya and Somalia as leaders in advancing regional economic integration and setting the pace for continental growth.

Under the agreement, NSES and NSE will cooperate on technology transfer, dual-listing frameworks, investor education, and the development of Shariah-compliant financial instruments such as Sukuk bonds. The partnership also commits both exchanges to aligning with East African Securities Exchanges Association (EASEA) protocols to promote seamless trade and transparent governance across borders.

Yasin M. Ibar, Chief Executive Officer of the National Securities Exchange of Somalia commented:

“For decades, Somali entrepreneurs have relied on informal trust networks and family capital to grow their businesses. This partnership is how we change that story, creating a transparent, regulated marketplace where opportunity is open to everyone.”

“Somalis move between these two markets every day. The ties are already deep because our people and our diaspora connect them. This partnership simply formalises what has long existed and ensures that everyone can finally benefit from it.”

Through this partnership, NSES gains access to the NSE’s technical capabilities and experience in listing, surveillance, and post-trade systems, while the NSE gains a new frontier for regional listings and diaspora engagement. Together, the exchanges aim to demonstrate how African cooperation can unlock liquidity, enhance transparency, and drive inclusive economic growth.

Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, said the collaboration reinforces NSE’s mission to position Nairobi as the gateway to regional capital flows:

“The future of African capital markets lies in connectivity. Through this MoU, we are proud to stand with NSES in advancing a more inclusive, efficient, and sustainable regional market that will benefit investors and issuers across East Africa.

Somalia’s progress in setting up the NSES represents bold leadership and vision. As exchanges, our collaboration will help unlock liquidity, support private sector growth, and create opportunities for both local and diaspora investors to participate in Africa’s growth story.”

The signing of the MoU comes as Somalia prepares to commence trading on NSES in early 2026, targeting key sectors such as telecommunications, banking, energy, real estate, and agriculture. For Kenya, the agreement strengthens Nairobi’s role as a regional financial hub and aligns with NSE’s strategic plan to expand its footprint through partnerships that drive innovation and sustainability across African markets.

The two exchanges will form a joint working committee to operationalise the partnership, focusing on areas such as regulatory cooperation, market surveillance, and joint investor-education initiatives.

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