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Investors in East Africa are increasingly concentrating their bets on banking and telecommunications companies, with Kenya’s leading mobile operator, Safaricom, emerging as the largest holding in a regional exchange-traded fund (ETF).
According to the latest fund allocation data, Safaricom accounts for 18.8% of the ETF’s total assets, underscoring continued investor confidence in the company’s earnings power, market dominance and dividend-paying capacity.
The telecom giant is followed by KCB Group with a 14.99% weighting, while Tanzania’s NMB Bank ranks third at 10.69%.
The composition of the fund suggests investors remain attracted to companies with strong profitability, reliable dividend payments and significant exposure to the region’s economic growth.
Safaricom recently strengthened its position after reporting a record profit exceeding about TZS 1.8 trillion and announcing the largest dividend payout in its history, reinforcing its appeal among both institutional and retail investors.
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| ETF asset allocation for the week ended 29 May 2026. (SOURCE: DSE) |
Financial institutions also feature prominently across the portfolio. Combined holdings in major banks including NMB, CRDB Bank and KCB account for nearly half of the fund’s total investments, reflecting expectations that demand for banking services, credit expansion and financial inclusion will continue to support earnings growth across the region.
By country allocation, Kenya remains the dominant destination for investor capital, representing 49.29% of the ETF’s assets. Tanzania follows with 35.58%, while Uganda accounts for 10.17% and Rwanda 4.96%.
Sector-wise, banking is the largest exposure, comprising 43.79% of total assets under management. Telecommunications ranks second at 27.91%, highlighting investor preference for industries viewed as central to East Africa’s long-term economic transformation.
Market analysts say the concentration in banks and telecoms reflects confidence in sectors benefiting from rising consumer spending, digitalisation, mobile money adoption and expanding access to financial services.
The latest allocations indicate that, despite broader global market uncertainty, investors continue to see East Africa’s banking and telecommunications sectors as among the region’s strongest engines of future growth.
