The Nairobi Securities Exchange (NSE) of Kenya and the National Securities Exchange of Somalia (NSES) have signed an agreement to deepen cooperation in East Africa’s capital-markets ecosystem and advance cross-border investment and financial integration in East Africa.

The agreement supports a shared vision of promoting cross-border listings, investor access, capacity-building and regulatory harmonisation across the region.

Under the agreement, the NSES and the NSE will cooperate on technology transfer, dual-listing frameworks, investor education and the development of Shariah-compliant financial instruments, such as Sukuk bonds.

Further, both exchanges have also committed to aligning with the East African Securities Exchanges Association (EASEA) protocols to promote seamless trade and transparent governance across borders.

The partnership links Somalia’s newly established securities exchange with one of Africa’s most experienced bourses and 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.

Through this partnership, the 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.

The exchanges aim to demonstrate how African cooperation can unlock liquidity, enhance transparency and drive inclusive economic growth.

Kenya and Somalia share deep-rooted economic and cultural ties. 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.

Further, Kenyan businesses are expanding their presence in Somalia’s finance and consumer sectors, which creates opportunities for growth on both sides.

The agreement builds on these connections to foster shared prosperity, thereby enabling investors and diaspora communities from both nations to participate confidently in each other’s markets and drive inclusive development across the region.

The 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.

Additionally, 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 vision of seamless trade and investment across the continent.

“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 by creating a transparent, regulated marketplace where opportunity is open to everyone,” says NSES CEO Yasin Ibar.

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

Somalia is preparing to start trading on the NSES in early 2026, and is 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 the NSE’s strategic plan to expand its footprint through partnerships that drive innovation and sustainability across African markets.

The collaboration reinforces the NSE’s mission to position Nairobi as the gateway to regional capital flows, says NSE CEO Frank Mwiti.

“The future of African capital markets lies in connectivity. Through this agreement, we 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 local and diaspora investors to participate in Africa’s growth story,” he says.