The Nairobi Securities Exchange (NSE) and National Securities Exchange of Somalia (NSES) have signed a partnership to drive cross-border investment and financial integration in East Africa's capital markets.

The deal is expected to enhance collaborations in key areas including dual listings, market regulations and the deployment of relevant technologies. Additionally, the agreement is also expected to spur the development of Sukuk bonds while fostering investor education in regional capital markets.

“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," explained Yasin M. Ibar, CEO, National Securities Exchange of Somalia.

He added: “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.”

According to NSE Chief Executive Frank Mwiti, the MoU is tailored to reinforce Nairobi bourse’s mission to position Kenya 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.”

At the moment, Kenya and Somalia share wide ranging 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. 

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.

Furthermore, 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.

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.

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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