The newly formed National Securities Exchange of Somalia (NSES) is courting Kenyan companies to cross-list in Mogadishu through a new partnership with the Nairobi bourse, in a move aimed at accelerating the exchange’s early growth and credibility.
Under a fresh agreement with the Nairobi Securities Exchange (NSE), Kenyan firms with interests in Somalia will consider listing on the NSES, while the NSE opens its platform to Somali firms seeking regional visibility.
The arrangement is part of a wider plan for NSE to support the region’s youngest stock market through technology transfer, investor education, and the development of Sharia-compliant instruments such as Sukuk bonds.
“The future of African capital markets lies in connectivity,” said NSE chief executive Frank Mwiti. “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 NSE has committed to encourage Kenyan firms operating in Somalia to explore listing in Mogadishu, while helping the Somali bourse design cross-listing mechanisms that could also enable Somali companies to list in Nairobi.
It is also eyeing Somali companies which will list in the new bourse to consider cross-listing in Nairobi, amid a decade-long IPO drought that has left the NSE struggling to attract fresh capital and new investors.
Launched in June, the Somali exchange is yet to list any company, but its leadership says it is in talks with several potential issuers, including some from Kenya. It is the region’s newest bourse, following the launch of the Ethiopia Securities Exchange in January, and has been leaning on older regional markets for guidance.
Yasin Ibar, the NSES chief executive, said the exchange is expected to transform how Somalis raise capital and that partnerships with regional bourses, including the NSE, will be central to that transition.
“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,” he said.
As the newest member of the East African Community, Somalia has drawn Kenyan firms looking to expand into the market.
While the NSE has not recorded a new initial public offering in more than a decade, it remains optimistic about helping its Somali counterpart establish the structures and credibility needed to attract Kenyan issuers.
Kenyan firms currently lead in cross-listing within the region. Eight companies are cross-listed, including Nation Media Group, East African Breweries, Kenya Airways, and Jubilee Holdings, mainly on the Uganda Securities Exchange and the Dar es Salaam Stock Exchange.
The NSE, however, has seen only two cross-listings from EAC firms: Rwanda’s Bank of Kigali and Ugandan utility Umeme, which listed in Nairobi in 2012.
