Kenya’s collective investment schemes market is approaching the KSh1 trillion mark as assets rise and investors spread more money across products beyond traditional money market funds. Assets under management reached KSh948.7 billion at the end of June 2026, up from KSh851.7 billion three months earlier.
Money Market Funds remain the largest category, but their dominance has weakened as Special Funds, Fixed Income Funds and foreign-currency products expand faster. Participation has also surged, with the investor base rising to about 4.1 million by June 2026.
Key Overview
The KSh948.7 billion industry total represented an 11% increase during the second quarter of 2026. MMFs held roughly KSh460 billion, or 49% of total assets, while Special Funds accounted for KSh252.8 billion and Fixed Income Funds for KSh228.1 billion.
The market is also becoming more diversified by currency. Foreign-currency fund assets climbed to KSh110.5 billion in June from KSh95.9 billion in March, a 15% quarterly increase. Of 47 foreign-currency funds, 45 were US dollar funds.
MMFs Still Lead, but Their Market Share Is Falling
Money Market Funds continue to anchor Kenya’s regulated investment industry, but other categories are growing faster. The shift in market composition has been substantial: MMFs accounted for roughly 90% of collective investment assets in March 2020 but about 49% by June 2026.
Over the same period, Special Funds increased their share from about 5% to 27%, while Fixed Income Funds rose from roughly 2% to 24%. During the second quarter of 2026, Special Funds grew by 24% and Fixed Income Funds by 15%, compared with about 4% for MMFs.
That does not mean MMFs are shrinking in absolute terms. Their assets are still growing; they simply represent a smaller share of a much larger and more diversified market.
Dollar Funds Become a Bigger Part of the Market
Foreign-currency funds are one of the clearest signs of this diversification. Assets rose from KSh95.9 billion in March to KSh110.5 billion in June 2026, compared with just KSh6.6 billion in March 2023.
The foreign-currency segment now has 47 funds, comprising 45 US dollar funds, one sterling fund and one South African rand fund. These products allow investors to hold assets whose underlying currency differs from the Kenyan shilling.
That can improve diversification, but it also introduces foreign-exchange risk because returns may be affected by movements between the shilling and the fund’s underlying currency.
Special Funds Reshape the Industry
Special Funds now account for about 27% of the market, making them a major part of Kenya’s investment landscape. Their growth has been influenced by a relatively small number of very large products.
The Mansa-X Special Funds reached about KSh188 billion by the end of June, equivalent to roughly one-fifth of the entire CIS market. Its KES fund alone held about KSh163.8 billion.
This concentration matters because growth in the Special Funds category does not necessarily mean money is spread evenly across many strategies. A few large funds can materially influence the category’s overall market share.
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Lower Rates Change the Investment Backdrop
The diversification is also taking place in a lower interest-rate environment. The Central Bank Rate was reduced to 8.75% in February 2026 and remained at that level through subsequent meetings.
By early September, the 91-day Treasury bill rate was around 8.769%, while the average commercial-bank savings rate stood at 3.53% in July. Lower short-term rates can affect MMF returns because these funds commonly hold Treasury bills, deposits and other short-duration instruments.
However, the available data does not prove that lower MMF yields alone caused investors to diversify. Liquidity needs, risk tolerance, currency exposure and investment horizons also shape allocation decisions.
Digital Access Is Bringing More Investors Into the Market
The number of CIS investors rose from about 2.5 million in June 2025 to around 4.1 million by June 2026, an increase of roughly 68%.
Mobile-based investment products have helped make regulated funds easier to access. The regulatory framework is evolving as well. In May 2026, the market regulator licensed two investment-platform providers, enabling technology platforms to connect investors with regulated collective investment schemes.
This means digital channels that helped popularise MMFs can increasingly be used to distribute a broader range of investment products.
What the Shift Means for Kenyan Investors
Kenya’s investment market is becoming larger, more accessible and more varied. MMFs remain important because of their liquidity and relatively conservative structure, but investors now have greater exposure to Fixed Income Funds, Special Funds and foreign-currency products.
The wider choice also makes product comparison more important. A dollar fund, fixed-income strategy, Special Fund and MMF can differ significantly in liquidity, volatility, currency exposure and underlying investment risk.
As the industry approaches KSh1 trillion in assets, the bigger story is not the decline of MMFs. It is the emergence of a broader investment market in which several fund categories are competing for a rapidly expanding pool of Kenyan savings and investment capital.
Sources: Capital Markets Authority / Central Bank of Kenya / Standard Investment Bank / TechTrends Kenya / Kenyans.co.ke / Eastleigh Voice
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