The Capital Markets Authority (CMA) has greenlit a series of new collective investment schemes (CIS) and sub-funds, a move poised to deepen Kenya’s capital markets and offer investors a broader array of financial products.
- •The approvals, announced 14th July, underscore the growing appetite for diversified investment vehicles, with assets under management (AUM) in Kenya’s CIS sector now exceeding Ksh. 500 billion.
- •The CMA has authorized three key players to launch funds that cater to both local and global investor needs. Specifically:
- •Sanlam Investments East Africa now offers the Sanlam Special GBP Fixed Income Fund, a GBP-denominated sub-fund. This fund provides access to fixed income securities in foreign currency, appealing to investors diversifying globally.
Kenya’s collective investment schemes market has surged from KSh 57 billion in 2016 to KSh 496.2 billion by March 2025, nearly doubling in just two years. Over two million Kenyans now invest in CIS, marking an 81% jump in participation.
Sanlam Investments East Africa has overtaken CIC Group as Kenya’s largest unit trust manager, growing from KSh 6.8 billion in Q1 2021 to KSh 90.2 billion in 2025. CIC stands at KSh 87.5 billion.
Alternative products are growing fast. Mansa-X became the third-largest fund with KSh 56.8 billion in just two quarters. Safaricom’s Ziidi fund surged 331% in one quarter via mobile-based access.
- •ALA Capital Limited will introduce the ALA Capital Collective Investment Scheme (ALA CIS) with six sub-funds: ALA Balanced Fund, ALA Multi-Asset Special Fund, ALA Equity Fund, ALA Fixed Income (KES) Fund, ALA Money Market Fund (USD), and ALA Money Market Fund (KES). These options suit varied risk profiles and include both Kenyan Shilling (KES) and US Dollar (USD) funds.
- •VCG Asset Management Limited can now launch three funds under the VCG Offshore Opportunities Special Funds umbrella: VCG Offshore Money Market Fund (KES), VCG Offshore Money Market Special Fund (USD), and VCG Offshore Fixed Income Special Fund (KES). These target high-net-worth and institutional investors seeking offshore opportunities.
Dollar funds are expanding too, now over 11% of AUM (KSh 53.6 billion), led by Sanlam’s USD Fixed Income Fund at KSh 17.9 billion
Money Market Funds remain dominant at 46% of AUM (KSh 229.7 billion). But with T-bill rates below 10% in mid-2025, returns are tightening, pushing managers toward greater product diversification. CMA’s strict oversight continues to safeguard market stability.
Strategic Context and Market Impact
CMA CEO FCPA Wyckliffe Shamiah praised the approvals, stating,
“These funds meet the rising demand for diverse investment options, including offshore and foreign currency products.”
He added that they strengthen investor choice and drive economic growth.
Additionally, the approvals align with broader market developments. For example, the Nairobi Securities Exchange (NSE) welcomed Shri Krishana Overseas Ltd (SKOL) as its first listing since 2020 in July 2025. The upcoming Kenya Pipeline Company (KPC) IPO will likely attract significant investment. Furthermore, the CMA recently exempted Sanlam Allianz Africa from a mandatory takeover offer after a Ksh. 2.5 billion rights issue in Sanlam Kenya Plc, supporting corporate growth.
