Wealth Atlas Bank ETF (BANK) | Kenyan Banking ETF on the NSE

The Case for Kenyan Banks

Why Kenyan banking,
why now

Kenya's banking sector is one of the most profitable and well-capitalised in Sub-Saharan Africa. Listed Kenyan banks have consistently delivered double-digit returns on equity, maintained strong capital buffers above regulatory minimums, and expanded aggressively across East Africa — yet most investors have no low-cost, systematic way to capture this growth.

Kenya's banking sector stands apart for several structural reasons. Mobile money integration — led by M-Pesa — has allowed Kenyan banks to build unrivalled retail deposit franchises at low cost. Regulatory oversight by the Central Bank of Kenya (CBK) has driven capital adequacy and governance standards to near-developed-market levels. And the pan-East-Africa expansion strategies of the top banks (Equity, KCB, NCBA) have diversified revenue streams beyond Kenya's borders.

Sector ROE: The top 5 NSE-listed banks averaged a return on equity of 19.2% in FY2024 — more than double the NSE 20 index average and significantly above comparable African markets. At the same time, average Tier 1 capital ratios stood at 17.4% — comfortably above the CBK minimum of 10.5%.

Despite this, most retail investors who want banking exposure are forced into concentrated single-stock positions, paying full brokerage commissions on each trade. The Wealth Atlas Bank ETF solves this — one trade, eight quality-screened banks, quarterly rebalancing, all at a 0.95% annual expense ratio.

🏦 Largest Banking Market in East Africa

Kenya's banking sector assets exceed KES 7 trillion — more than twice Uganda and Tanzania combined. It is the most liquid and deepest banking equity market in the region.

📱 Mobile-First Deposit Franchises

M-Pesa and mobile banking integrations have given Kenyan banks near-zero-cost retail deposit bases, structurally higher NIMs, and broader reach than peers elsewhere in Africa.

🌍 Pan-East-Africa Expansion

The leading banks — Equity Group, KCB, and NCBA — now operate in 6–9 African countries, turning Kenya's NSE into a vehicle for broader continental exposure.

🏛️ Strong Regulatory Framework

CBK minimum Tier 1 capital of 10.5%, mandatory IFRS reporting, and progressive stress-testing frameworks have produced one of Africa's most resilient banking systems.

💰 Consistent Dividend Payers

Six of the eight qualifying Kenyan banks have paid uninterrupted dividends for over a decade. Sector dividend yields average 4.8% — offering income alongside capital appreciation.

📈 Attractive Valuations

NSE banking stocks trade at a median price-to-book of 1.2× — a significant discount to comparable global emerging-market banks, despite superior ROE and growth profiles.

Index Constituents · FY2025 Data

All 11 NSE-listed Kenyan banks —
physical full replication

The Wealth Atlas Bank ETF holds all 11 NSE-listed banking institutions directly (physical full replication). Weights are determined by a proprietary five-factor quality score — ROE, NPL ratio, dividend yield, P/B valuation, and earnings growth — constrained by a liquidity capacity cap. Constituent bands (Large / Mid / Small) are indicative only; exact weights are proprietary to the WABQI methodology. Index reviewed semi-annually in April and September. All fundamental data from confirmed FY2025 annual reports.

Source: NSE company announcements & FY2025 audited annual results. Prices as at 31 December 2025. Weights are illustrative pending formal index calculation and CMA approval.

Bank	Band	Mkt Cap (KES Bn)	Price (KES)	P/E	P/B	ROE FY25	NPL% FY25	CIR% FY25	Div Yield	Data
ABSAABSA Bank Kenya	Large	179.8	KES 33.10	7.8×	1.79×	23.0%	11.4%	36.5%	6.2%	FY25✓
BKGBK Group PLC	Mid	66.6	KES 55.50	5.3×	0.72×	22.9%	2.9%	37.9%	8.5%	FY25✓
COOPCo-operative Bank	Large	205.7	KES 35.05	7.0×	1.25×	19.1%	15.4%	46.3%	7.1%	FY25✓
DTKDiamond Trust Bank	Small	41.5	KES 146.50	4.4×	0.41×	10.3%	10.8%	48.8%	6.1%	FY25✓
EQTYEquity Group Holdings	Large	326.4	KES 86.50	4.5×	1.05×	26.7%	10.5%	51.0%	6.6%	FY25✓
HFCKHF Group	Small	22.4	KES 11.85	15.8×	1.26×	8.5%	24.3%	69.3%	0.0%	FY25✓
IMHI&M Holdings	Mid	106.3	KES 68.25	6.3×	1.03×	18.0%	9.8%	46.8%	5.5%	FY25✓
KCBKCB Group	Large	260.9	KES 81.25	3.9×	0.79×	22.5%	16.9%	42.3%	6.2%	FY25✓
NCBANCBA Group	Mid	145.0	KES 89.25	6.3×	1.15×	19.7%	10.2%	52.3%	8.0%	FY25✓
SBICStanbic Holdings	Mid	116.7	KES 292.50	8.4×	1.44×	18.0%	8.0%	46.2%	7.6%	FY25✓
SCBKStandard Chartered	Mid	120.8	KES 336.50	10.4×	1.92×	18.1%	5.4%	60.2%	9.2%	FY25✓
Index Total / Wtd. Avg.	Proprietary	KES 1592Bn	—	—	—	21.2%	11.5%	47.1%	6.9%	FY25✓

BAND KEY: Large >10% Mid 4–10% Small <4% Exact weights are proprietary to the Wealth Atlas Banking Quality Index (WABQI).

All 11 banks held: ABSA · BKG · COOP · DTK · EQTY · HFCK · IMH · KCB · NCBA · SBIC · SCBK. Past performance not indicative of future results.

Constituent data (FY2025)

Source: FY2025 audited annual results. All 11 NSE-listed Kenyan banks.

Income Distribution Policy: The BANK ETF distributes income twice per year, tracking the banks' own dividend seasons — a final-dividend distribution (around September) and an interim-dividend distribution (around December) — paid net of fees and Kenyan withholding tax (5% for resident investors) to the bank account linked to each investor's CDS account.

Index Methodology

Wealth Atlas Banking
Quality Index

A five-step rules-based process applied quarterly to Kenya's NSE-listed banking universe — selecting only the institutions that meet all four quality criteria.

1

Universe: NSE-Listed Kenyan Banks

The eligible universe is restricted to banking institutions incorporated and regulated in Kenya with a primary listing on the Nairobi Securities Exchange. No foreign or dual-listed banks qualify. Minimum free-float market cap: KES 10 billion.

2

Capital Adequacy Screen

Tier 1 capital ratio ≥ 12% (150 basis points above the CBK statutory minimum of 10.5%). Eliminates structurally undercapitalised institutions and those reliant on regulatory forbearance.

3

Asset Quality Screen

Non-performing loan (NPL) ratio must be at or below the median of the qualifying Kenyan banking sector. Currently set at 13.5% based on CBK sector data. Screens out banks with deteriorating loan books.

4

Earnings Quality Screen

3-year average return on equity (ROE) ≥ 12% — ensuring only banks that consistently generate returns above a representative cost of equity are included. Based on audited IFRS financials.

5

Weighting & Rebalancing

Qualifying constituents are weighted by free-float market capitalisation. A 20% single-issuer cap applies, with excess weight redistributed pro-rata. Index is rebalanced quarterly using the most recently published audited or interim financial data.

Key index parameters

Universe

NSE-listed Kenyan banks only. Currently 8 qualifying constituents out of 11 listed banking groups.

Weighting

Free-float market capitalisation weighted. 20% single-issuer maximum cap.

Rebalancing

Quarterly — March, June, September, December. Effective on the last business day of each quarter.

Currency

Kenya Shilling (KES). All prices sourced from NSE official closing data.

Frequently Asked Questions

Everything you need
to know

What is the Wealth Atlas Bank ETF? +

The Wealth Atlas Bank ETF (Ticker: BANK) tracks the Wealth Atlas Banking Quality Index — a rules-based index providing exposure exclusively to NSE-listed Kenyan banking stocks that meet four quality criteria: capital adequacy, asset quality, earnings quality, and liquidity. It is developed in partnership with SIB investment bank and will be listed on the NSE.

Why only Kenyan banks — not pan-African? +

Kenya's NSE-listed banking sector already provides deep, liquid exposure to East African banking through the pan-regional expansion of banks like Equity Group (operations in 9 countries), KCB Group (7 countries), and NCBA (4 countries). Restricting the universe to NSE-listed stocks ensures transparency, regulatory simplicity under CMA Kenya, and consistent KES-denominated pricing. A separate pan-African banking ETF may follow in subsequent series.

What is the TER and what does it cover? +

The Total Expense Ratio (TER) is 0.95% per annum, charged daily against the fund's net asset value. The TER covers all fund management fees, index licensing costs, custodian fees, audit costs, and regulatory filings. Transaction costs (brokerage commissions when rebalancing) are not included in the TER but are minimised by the quarterly rebalancing frequency.

Who can invest? +

Once listed, any investor with access to the NSE through a licensed Kenyan stockbroker can buy and sell units of the BANK ETF, just like ordinary shares. This includes retail investors, SACCOs, pension funds, insurance companies, and family offices — both domestic and foreign investors.

When will the ETF launch? +

The Wealth Atlas Bank ETF is subject to CMA Kenya regulatory approval and NSE listing requirements. Target launch is 2027, subject to regulatory timelines and the completion of the Wealth Atlas CMA Investment Advisory licence application. Register your interest below to receive launch notifications.

How is it different from just buying Equity or KCB directly? +

Buying individual bank stocks concentrates risk in a single institution. The BANK ETF spreads exposure across all 8 qualifying Kenyan banks in a single trade — instantly diversified, quarterly rebalanced, and automatically maintained. It is also significantly more cost-efficient for investors who would otherwise pay brokerage commissions on 8 separate trades and monitor each stock individually.

Structure & Partners

Built with institutional partners

Index Provider

Wealth Atlas LLC

Fund Manager & Listing Partner

SIB Investment Bank

Listing Exchange

Nairobi Securities Exchange (NSE)

Regulator

CMA Kenya — Filing in Progress

Data Source

NSE Official Market Data

The Wealth AtlasBank ETF

Why Kenyan banking,why now

All 11 NSE-listed Kenyan banks —physical full replication