Kenya’s capital markets industry is experiencing rapid expansion as the Capital Markets Authority (CMA) approved 16 new investment funds across six asset managers in one of the regulator’s largest approval rounds in recent years. The approvals cover multiple investment categories, including money market funds, fixed income products, special funds, equity strategies and alternative investment structures.
The latest approvals come as Kenya’s collective investment schemes (CIS) sector continues expanding significantly. Total industry assets under management reached KSh 756.2 billion by December 2025, reflecting strong growth in investor participation and increasing demand for diversified investment products.
The new approvals highlight changing investor preferences toward actively managed strategies and wider access to different asset classes, including private debt and multi-asset investment approaches.
Key Overview
Kenya’s Capital Markets Authority approved 16 new funds across six asset managers as industry assets under management reached KSh 756.2 billion.
CMA Approves 16 Investment Funds as Kenya’s Asset Management Industry Expands
Kenya’s capital markets regulator has approved sixteen new investment funds across six asset management firms, reflecting continued expansion within the country’s investment landscape and increasing investor appetite for diversified financial products.
The approvals, announced on May 26, 2026, represent one of the largest single rounds of investment fund approvals in recent years and span various categories including unit trusts, special funds and alternative investment vehicles.
The newly approved funds cover multiple risk profiles and investment strategies, ranging from conservative money market products and fixed-income securities to multi-asset portfolios, private debt structures, equity investments and derivative-linked strategies.
The broad mix of products highlights the continued evolution of Kenya’s investment sector as fund managers increasingly develop specialized products tailored toward different investor objectives and risk tolerances.
The approvals also arrive during a period of substantial growth within Kenya’s collective investment schemes market.
Industry assets under management reached KSh 756.20 billion as of December 31, 2025, representing an increase of 11% from KSh 679.60 billion recorded three months earlier.
Longer-term growth has been even more substantial.
Assets under management have expanded by approximately 1,236% from KSh 56.60 billion recorded in March 2018, illustrating the scale of growth experienced by the sector over recent years.
The numbers suggest a significant increase in participation by both retail and institutional investors seeking alternatives beyond traditional banking products.
EDC Asset Management Enters the Market
Among the firms receiving approvals, EDC Asset Management (Kenya) Limited is entering the market with a broad investment offering structured under the EDC Kenya Unit Trust Funds umbrella.
The company secured approval for five sub-funds designed to target varying investor profiles and investment objectives.
The approved products include:
The EDC Kenya Money Market Fund
The EDC Kenya Fixed Income Fund
The EDC Kenya Dollar Income Fund
The EDC Kenya Balanced Fund
The EDC Kenya Equity Fund
The structure is intended to accommodate different categories of investors, ranging from individuals focused on preserving capital and maintaining liquidity to investors seeking long-term capital appreciation opportunities.
Money market and fixed-income products generally appeal to conservative investors prioritizing capital stability, while balanced and equity-focused products target those seeking stronger long-term growth potential.
Capital A Expands Multi-Asset Strategy Offering
The Capital Markets Authority also granted approval to Capital A Investment Bank Limited for two new sub-funds under its existing Capital A Unit Trust structure.
The products include:
The Capital A Multi Asset Strategy Special Fund (KES)
The Capital A Multi Asset Strategy Special Fund (USD)
The two funds will pursue actively managed and event-driven investment approaches across multiple asset classes.
According to the company, the strategy targets investors seeking diversified exposure through dynamic portfolio management.
Multi-asset funds have increasingly gained popularity because they allow managers flexibility in shifting allocations across asset classes depending on market conditions and investment opportunities.
The approach aims to reduce concentration risks while improving overall portfolio performance.
Alternative Investment Market Gains Momentum
Among the more notable approvals was authorization granted to Faida Investment Bank Limited for the KETSA Alternative Investment Fund.
The fund will operate under the Capital Markets (Alternative Investment Funds) Regulations, 2023 and represents a growing segment within Kenya’s investment market.
The KETSA fund will invest across several categories including:
Private debt
Equities
Money market instruments
Fixed-income securities
Other approved assets
A central objective of the fund involves channeling institutional capital into Kenya’s SACCO ecosystem.
The SACCO sector remains one of Kenya’s largest financial segments, with an estimated KSh 1 trillion in assets under management.
Despite its size, the sector has historically experienced relatively limited access to formal capital market intermediation structures.
The KETSA Alternative Investment Fund could potentially help bridge that gap by creating new funding channels between institutional investors and SACCO institutions.
Special Funds Continue Rapid Expansion
The latest approvals also reflect the growing popularity of special funds across Kenya’s collective investment industry.
Special funds represent a category that had minimal market presence prior to 2023.
However, the segment has grown rapidly.
According to industry figures, special funds now account for approximately 21.5% of total industry assets under management, equivalent to around KSh 162.40 billion.
The rapid growth suggests increasing investor demand for actively managed investment products that offer broader flexibility than traditional unit trust structures.
Several of the newly approved products specifically target this segment.
Pergamon Expands Product Offering
The regulator also approved Pergamon Investment Bank Limited to establish the Pergamon Unit Trust Scheme.
The scheme includes six sub-funds:
Pergamon Money Market Fund (KES)
Pergamon Money Market Fund (USD)
Pergamon Equity Fund
Pergamon Fixed Income Fund
Pergamon Balanced Fund
Pergamon Special Diversified Income Fund (KES)
The inclusion of both Kenya shilling and U.S. dollar-denominated products reflects growing investor interest in currency diversification and broader portfolio flexibility.
Meridian Introduces Total Return Strategy
Approval was also granted to Meridian Asset Management Limited for the establishment of the Meridian Asset Management Scheme.
The initial offering under the scheme will consist of the Meridian Kenya Shilling Total Return Special Fund.
The fund aims to maximize returns while preserving capital through a combination of income generation and capital appreciation strategies.
Total return approaches have become increasingly attractive for investors seeking balanced exposure between growth and income objectives.
Chumz Continues Regulatory Journey
The CMA additionally highlighted Moneto Ventures Limited, the company operating the Chumz mobile application.
The company previously participated in the Authority’s Regulatory Sandbox programme, where new financial products and business models undergo controlled testing before receiving broader market access.
According to the regulator, Chumz successfully exited the sandbox in August 2022, demonstrating how innovation-focused regulatory structures are increasingly supporting financial technology development.
Kenya’s Investment Landscape Continues Evolving
The latest approvals reinforce broader shifts taking place within Kenya’s financial sector.
Investor preferences increasingly appear to be moving beyond traditional savings products toward diversified investment solutions offering multiple risk-return profiles.
The expansion of special funds, alternative investments and multi-asset products reflects a maturing market increasingly capable of serving varied investor requirements.
As assets under management continue expanding and new firms enter the market, Kenya’s collective investment industry appears positioned for continued growth.
The approvals also suggest that regulators are becoming increasingly supportive of broader product innovation while maintaining oversight under the framework established by the Capital Markets (Collective Investment Schemes) Regulations, 2023.
For investors, the expanded range of products provides greater flexibility and potentially broader access to investment opportunities across Kenya’s evolving financial markets.
Sources: Kenyan Wallstreet, Eastleigh Voice, People Daily
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