Accelerating Technological Changes Driving the Re-Invention of the Nairobi Securities Exchange (NSE), Says CEO

Frank Mwiti, the CEO of the Nairobi Securities Exchange (NSE), recently spoke about the NSE 2025-2029 Strategy and what informed and inspired the strategic direction of the Exchange.

In an interview, Mwiti highlighted the changes that are shaping the global capital markets and why it was necessary to re-invent the 70-year old institution.

Some of the key considerations that shaped the strategy includes:

* Accelerating technological changes

• Geopolitical considerations such as the rise of Asia
• Systemic changes like climate change
• Demographics such as the youth in Kenya

According to Mwiti, the NSE also looked at local Kenyan trends. Some of these include:

• Mobile trading
• Support for private sector to raise complimentary capital

“The new strategy is grounded in our local reality but takes into account what is happening around the world and how to be relevant in the future.” – CEO, NSE

Further Insights from the Op-Ed

The above strategy, as highlighted by Mwiti, aligns with the recent developments where the NSE has formed partnerships with global virtual assets firms and platforms with the goal of launching a digital assets exchange and tokenization platform to service the Kenyan market.

In an op-ed titled, ‘Is Tokenization the Secret Key to Unlock Africa’s Economic Potential?’ Mwiti discusses the challenges plaguing African markets such as:

• Raising capital
• Thinning bond markets
• Limited secondary trading

“Tokeniation can break these logjams,” says Mwiti.

Mwiti goes on to provide examples of how tokenization is being used to raise funding by floating bonds via the blockchain. He also highlights the use of tokenization to enable fractional ownership of high-value assets in the Nigerian real estate industry.

When it comes to encouraging the youth to invest, Mwiti says:

“By lowering minimums and removing geographic barriers, tokenization broadens the investor base. Africa’s young, tech-savvy population stands to gain.

In Kenya, where mobile subscriptions exceed the population (approximately 122 SIMs [subscriber identity modules] per 100 people) and smartphone penetration is rising, the Nairobi Securities Exchange (NSE) envisions the Kenya Digital Exchange (KDX) as a fully regulated platform to trade tokenized RWAs, the Kenya Digital Exchange (KDX) is a fully regulated platform to trade tokenized RWAs.”

Mwiti says the KDX will “unlock new investment opportunities, deepen market access, and position Kenya as a trailblazer in tokenization.”

The recent remarks by Mwiti shed light on how the 70-year old institution is re-inventing itself by adopting emerging technological changes such as tokenization.

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