The value of combined assets of Collective Investment Schemes (CIS), such as Money Market Funds and fixed income funds, increased by 81% to KSh 389.2 billion in December 2024 from KSh 215.04 billion in December 2023.
- •In the 3 months to December, funds’ assets under management increased by 23% from KSh 316.4 billion, with the growth driven by new funds and heightened investor interest.
- •According to data from the Capital Markets Authority (CMA), investors grew 33% to 1.41 million in December 2024 from 1.05 million in December 2023.
- •Money Market Funds (MMFs) remained the most popular vehicle, accounting for KSh 246.8 billion – 63% of all funds under management, marginally up from 62% in September.
“This growth can be attributed to the additional funds registered and the heightened interest in money market funds among investors,” CMA said in the report, “The increase is also a result of intensified marketing efforts by the fund managers.”
The other funds were little changed, taking up the remaining 37% share – Fixed Income Fund (KSh 66.8 billion), Special Fund (KSh 70.7 billion), Equity Fund (KSh 2.5 billion), Balanced Fund (KSh 1.3 billion), Other Funds (KSh 114. billion).
In 2024, dollar funds grew by 114% in just nine months, from KSh 19.5 billion to KSh 41.7 billion by the close of the year. The growth was driven by the introduction of 12 new funds during the year, including Stanbic’s Fixed Income Fund USD which grew from just KSh 1.363 million in September to KShs. 740.928 million three months later.
Winners, and New Players
The CIC Unit Trust Scheme remained a leader by assets in the collective investment schemes, taking up 21% of overall market share with assets totaling KSh 82.5 billion – a 17% increase from KSh 70.3 billion in the 3rd quarter of 2024. Sanlam Unit Trust was the second largest collective investment scheme, with assets growing 34% to KSh 62.7 billion with a 16% market share.
Newly established Stanbic Unit Trust recorded the highest growth in assets under management, increasing by a staggering 621% to KSh 2.4 billion in the 3 months to December 2024 from KSh 338.1 million in September 2024. Safaricom’s new MMF Ziidi now holds 0.4% market share, with assets reaching KSh 1.713 billion by the end of December 2024.
Equity Investment Bank saw the largest and only decline in assets under management to KSh 119.5 million in December 2024 from KSh 138.9 million in September 2024.
