The idea of KSE started in 1962 by Ministry of finance, bank of Sudan and International Finance Corporation (IFC).

In 1966 the first government bonds were issued with a par value of £S.15 million and ten years life.

The classifications of listed companies began in 1999.

In 2007, KSE joined Africa Market Union.

While the KSE has been growing rapidly over the last few years and has 53 listed companies worth around 5 billion dollars, the stock exchange is open only one hour per day, Sunday through Thursday.