NSE bond market crosses Sh1 trillion mark for first time

The Nairobi Securities Exchange (NSE) bond market has reached a milestone, crossing the Sh1 trillion mark in cumulative turnover for the first time in the history of the Exchange.

The milestone, which covers the period from January 2 to August 21, 2024, follows bond market reforms undertaken by the NSE to broaden and enhance the efficiency and appeal of Kenya's bond market to both domestic and international investors, said the NSE chief executive Frank Mwiti.

He said the reforms have included the operationalisation of a hybrid fixed-income market, which has enabled the NSE to combine both on-screen and Over-the-Counter (OTC) trading of fixed-income securities.

This hybrid model has improved pre-trade transparency through the introduction of a Bond Quotations Board, providing investors with increased visibility into market quotes. "The growth in the bond market turnover in the year 2024 is a reflection of investor sentiment in our market and the country's economic prospects. This performance is a testament that the reforms and innovations in our fixed income market are working and the NSE market infrastructure capabilities are aligned with global industry trends," said Mwiti.

"We will continue pursuing initiatives aimed at creating a dynamic and resilient bond market that will serve the needs of all investors and the wider capital markets ecosystem in Kenya and globally."