The Nairobi Securities Exchange (NSE) targets up to Sh1.8 billion in non-trading revenues over five years as part of its business diversification plan amid volatility in equity trading.
The bourse is aiming to hit Sh3 billion by 2029, with 60 percent of this revenue coming from non-trading activities such as data vending, consultancy and training, which are not subject to market swings.
“We set out an ambitious agenda: to enhance operational discipline by reducing the cost-to-income ratio to 40 percent,” the bourse says in its latest annual report (2025).
“We remain firmly on track to achieve our medium-term target of Sh3 billion in revenue through a deliberate focus on growing diversified income streams while maintaining disciplined cost management. This balanced approach is steadily improving our efficiency and strengthening our financial resilience.”
Diversification push
NSE has crafted a five-year (2025–2029) plan designed to accelerate growth, deepen market innovation and position the bourse as a leading force in Africa’s capital markets landscape.
The plan reflects NSE’s commitment to unlocking new opportunities, creating long-term value for stakeholders and building a stronger, more dynamic future.
“In line with our strategy, for non-trading the first one is growing our data business and the intention is to grow that very strongly and to transition from just selling data to selling insights, which is providing insights as opposed to just selling raw data,” NSE chief executive Frank Mwiti told the Business Daily in a telephone interview.
“Related to our data business is consulting. For example, we want to do more consulting work around ESG, SME development, and around things like governance and investor relations. We want to do consulting that is relevant to the capital markets. We also want to do more around product development and accelerate our work around the NSE innovation hub, which we launched last year.”
The bourse is also focused on training programmes, including financial literacy and investor education, to grow its income away from equity trading.
“The last thing, of course, to put in there is training — whether it is training other exchanges that want to get where we are, training people in financial literacy and investor education, training people how the market works,” said Mr Mwiti.
“All these combined will enable us to diversify from trading, but trading will continue to be a key aspect of our business. In fact, it is trading that gives us the licences to do these other things.”
Market expansion
The bourse says it is committed to deepening and diversifying the market by positioning itself as the premier platform for capital raising.
It is targeting 40 new listings, expanding market segments to attract high-potential enterprises and introducing 50 new index funds to broaden investment opportunities.
“At the heart of these priorities is a deliberate focus on increasing retail investor participation, recognising individual investors as central to building a vibrant capital market and advancing our ambition of becoming the region’s preferred financial services hub,” it says.
Last year, the bourse recorded a 134 percent growth in net profit from Sh116.3 million in 2024 to Sh272.2 million in 2025, while total revenues crossed the Sh1 billion mark to Sh1.08 billion from Sh828 million in the same period.
Equity transaction levy increased by 37 percent from Sh253 million to Sh348 million, while bond transaction levy grew by 76 percent from Sh169 million to Sh298 million.
“We continued to make good progress in diversifying our revenue base. Non-trading income streams delivered strong growth, with data income increasing by 17 percent to Sh118.3 million, while consultancy income grew by 85 percent to Sh42.9 million. This performance reinforces our strategic focus on building sustainable and diversified revenue streams,” NSE says.
NSE’s consultancy income grew to Sh42.87 million in 2025 from Sh23.2 million, rental income rose to Sh18.79 million from Sh10.51 million, while event sponsorship income increased to Sh9.14 million from Sh2.42 million.
