Kenya's capital market now ranks fifth in Africa, up from seventh, with a score of 65 out of 100.
That is the 2026 Africa Financial Markets Index, compiled by Absa Group and the Official Monetary and Financial Institutions Forum (OMFIF), as reported by Business Daily Africa on 14 October 2026. For a saver holding shares or bonds on the Nairobi Securities Exchange (NSE), the index is a yardstick of how easily money can be raised and moved: stock and bond markets, access to foreign currency, pension savings, economic conditions and regulation.
Who is ahead
Facts. South Africa kept the top spot, followed by Mauritius and Namibia. Business Daily lists those three and Uganda ahead of Kenya.
| Rank, 2026 | Country |
|---|---|
| 1 | South Africa |
| 2 | Mauritius |
| 3 | Namibia |
| 4 | Uganda |
| 5 | Kenya |
| 6 | Ghana |
| 7 | Botswana |
| 8 | Nigeria |
Source: Absa Africa Financial Markets Index 2026, as reported by Business Daily Africa and Reuters (via Polity), 14 October 2026. Uganda's place is inferred from Business Daily's list of the countries ahead of Kenya.
Facts. The index covers 29 countries. OMFIF says the average score is now 56, the highest in the index's 10 years. Reuters reports that 21 of the 29 scored higher than before. This edition measures countries against fixed benchmarks of good practice rather than against each other, and earlier scores were recalculated; on that basis Kenya scored 59 a decade ago.
What moved Kenya
Facts. Kenya scored 100 on market transparency, level with South Africa, and 100 on the tax and regulatory environment. It scored 43 on market depth and 30 on pension fund development. The report, quoted by Business Daily, says Kenya's "first dollar-denominated security was listed and recorded its highest-ever bond trading volumes during a broad market rally", and that market capitalisation rose 27.8% in the first half of 2026.
Facts. Equity turnover on the NSE reached KES 322.2bn in the six months to June 2026, against KES 145.4bn for the whole of 2025, Business Daily reports. Bond turnover passed KES 1.7tn by June, against a record KES 2.71tn in 2025.
What it means
For investors on the NSE (Analysis): much of the gain came from activity, meaning more trading and new products. Trading can fall as fast as it rose. A higher rank this year reflects a busier market over the period measured, not a permanent change.
For the weak scores (Analysis): depth and pensions are the scores that take years to move, because they depend on how many investors there are and how much long-term money local pension funds put into the market.
For the regulator and the exchange (Analysis): transparency and the tax and regulatory score are already at the maximum. Further gains would have to come from the other pillars, which is where the Capital Markets Authority and the NSE's product plans meet the index.
What to watch
- Kenya's full pillar scores in the Absa/OMFIF report, and whether depth and pensions improve in the next edition.
- Further dollar-denominated listings on the NSE, and how much they trade.
- Whether Kenya holds fifth place when the next edition is published.
Information, not advice.