NSE Launches New Banking Sector Index to Track Bank Shares

The Nairobi Securities Exchange (NSE) has introduced a new Banking Sector Index that will track the performance of all listed banks. The index, which took effect on October 1, 2025, is expected to provide investors with a reliable and transparent benchmark to measure the strength of the banking sector.

The new index will cover the shares of major financial institutions including Absa Bank, Equity Group, KCB Group, NCBA Group, Co-operative Bank, I&M Group, HF Group, Stanbic Holdings, Diamond Trust Bank, Standard Chartered Bank, and BK Group. By including all the leading players, the NSE aims to give investors a full picture of how the banking sector is performing.

According to the NSE, the Banking Sector Index will be key in guiding investment decisions and supporting research on the industry. It will also provide a foundation for product innovation, with the exchange noting that it will open the door to tools such as Exchange Traded Funds (ETFs) and other index-based products. This is expected to deepen market activity and expand investor participation.

NSE Chief Executive Frank Mwiti said the launch is part of the bourse’s commitment to growth and innovation. “This milestone underscores NSE’s commitment to innovation and the continuous development of products that meet evolving investor needs while strengthening Kenya’s capital markets,” he stated.

He further noted that the index is aligned with NSE’s strategy of expanding diversification and deepening market activity. “The launch of the Banking Sector Index is fully aligned with our new strategy of driving product diversification and deepening market activity. Beyond providing investors with a reliable performance tracker, the Index will highlight the banking sector as a key driver of economic growth and create a strong foundation for future product innovation,” he added.

The NSE pointed out that the banking sector has already shown resilience this year. Between January and September 2025, listed banks reported strong earnings, expanded their balance sheets, and introduced new financial innovations. This robust performance highlights the sector’s central role in fueling capital markets and supporting the wider economy.

By rolling out the new index, the NSE hopes to strengthen investor confidence and position itself as a globally competitive marketplace. The exchange believes that by tracking bank shares more effectively, the index will not only benefit investors but also support Kenya’s long-term economic growth.