NAIROBI, Kenya, Dec 1 – The Nairobi Securities Exchange (NSE) is banking on new technology-driven access models to revive foreign participation after Absa Securities Kenya executed the first trades routed directly from Absa Bank South Africa under a sponsored access arrangement.
Sponsored access allows approved foreign investors to send orders straight into the NSE’s trading engine through a local sponsoring broker, enabling faster execution and supporting high-volume institutional trades. The model is provided for under Guideline 4.8 of the NSE’s Direct Market Access Guidelines, 2019.
Merlin Rajah, Head of Electronic Sales at Absa CIB, said the milestone demonstrates market confidence and the exchange’s readiness to attract sophisticated investors.
“The successful deployment of Sponsored Access by Absa is a powerful signal of investor confidence and technological readiness. We are helping create more efficient and transparent pathways for investors to participate in African capital markets,” Rajah said.
The NSE hopes the mechanism will help draw in more regional deal flow, particularly from South African institutional investors, as foreign participation remains at multi-year lows due to currency volatility and depressed valuations.
The exchange says it will continue investing in technology-based access solutions as part of efforts to rebuild liquidity and reinforce Nairobi’s position as a regional trading hub.
