The Nairobi Securities Exchange (NSE), the agency responsible for providing a trading platform for listed securities, is planning to establish a dedicated technology board designed to woo venture-backed startups onto public markets.
The exchange has long been dominated by banks and telecom firms; now, it wants companies like M-KOPA, BasiGo, and other high-growth venture-backed startups on its board. The proposed board would sit within NSE’s current structure but be tailored to fast-scaling companies that don’t yet look like blue-chip companies.
Why now? Kenya has built a reputation as East Africa’s tech capital, but very little of that startup energy shows up on the trading board. In 2018, the NSE launched Ibuka, a programme designed to prepare companies for listing by improving financial reporting and investor readiness. While Ibuka strengthened corporate discipline, its uptake has been slow, and it hasn’t translated into any listings. This time, the NSE wants to change the perception that only mature companies belong on its bourse.
Will startups bite? In 2022, the Nigerian Exchange Group (NGX) created a dedicated technology board to attract high-growth tech companies; however, it has yet to attract any listings. Analysts have pointed to governance readiness gaps, valuation mismatches, and concerns around initial public offering (IPO) liquidity. But Nairobi insists liquidity isn’t the problem in the Kenyan market, but mobilisation is.
Why this matters: Public markets offer startups long-term capital and local retail ownership, yet it still comes with heavy public scrutiny.
For VC-backed companies, listing on the public market can give a sort of reprieve to investors seeking liquidity events to exit the business. Still, startups will only list if rules, valuations, reporting demands, and liquidity realities align with or surpass the comfort of their VC realities.
