Kenya’s Special Funds market is rapidly moving from a niche segment into a significant part of the country’s investment-management industry. The latest collective investment schemes data show Special Funds held KES 203.6 billion in assets at the end of March 2026, representing 23.9% of total collective investment scheme assets and making them the second-largest fund category after money market funds.
The expansion is being reinforced by new product approvals from established institutions such as Britam and Absa, alongside a wider increase in fund-management and capital-market licences. For investors, that means greater access to multi-asset, global-equity, foreign-currency and other specialised strategies, but also a greater need to understand exactly what sits inside each fund.
Key Overview
- Special Funds held KES 203.6 billion in assets under management by March 2026, equivalent to 23.9% of Kenya’s CIS market.
- Special Fund assets increased 25% in the first quarter of 2026, from approximately KES 162.4 billion at the end of 2025.
- Britam has received approval for the Britam Multi Asset Special Fund (KES) and Britam Enhanced Global Equities Special Fund (USD).
- Absa has approval for KES and USD-denominated Global Multi-Asset Special Funds, expanding the range of internationally oriented products available locally.
- Mansa-X remains the dominant Special Fund franchise, with its KES and USD conventional funds accounting for more than 70% of Special Fund assets at the end of March.
- New licences and product approvals are increasing competition among fund managers, advisers, brokers and trustees across Kenya’s capital markets.
- Greater institutional participation could support market liquidity and price discovery, although Special Fund capital will not necessarily flow exclusively into NSE-listed securities.
Special Funds Move Into the Mainstream
Kenya’s collective investment schemes industry had reached KES 851.7 billion in total assets by March 2026, up 13% from KES 756.3 billion three months earlier. Within that market, Special Funds grew considerably faster, increasing 25% during the quarter.
Unlike a conventional money market, equity or balanced fund, a Special Fund can be structured around a more specialised investment mandate. Depending on its approved strategy, that can include combinations of local and international equities, government and corporate debt, currencies, private debt, commodities or other alternative exposures.
The regulatory framework for these schemes (CMA) has increasingly enabled managers to introduce multi-currency and multi-asset products, allowing investors to move beyond the narrower mandates traditionally associated with mainstream unit trusts.
That flexibility is part of the attraction, but it also means Special Funds cannot be assessed as one uniform asset class. Two funds carrying the “Special Fund” label may have very different underlying investments, volatility, liquidity terms and return drivers.
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Britam and Absa Expand the Product Pipeline
Britam is among the latest institutions to expand into the segment. Under approvals announced in August (CMA), the asset manager was authorised to register the Britam Multi Asset Special Fund (KES) and Britam Enhanced Global Equities Special Fund (USD).
The Multi Asset Special Fund is designed to invest across local and global equities, fixed income and alternative assets, while using tactical strategies within its approved mandate. The global-equities product expands the range of international market exposure available through the group’s fund platform.
Absa has similarly received approval for the Absa Global Multi-Asset Special Fund in both Kenya shilling and US dollar versions as additional sub-funds under its existing unit trust structure. The expansion reflects a wider industry move towards giving investors both currency and asset-allocation choices within regulated fund structures.
Zimele has also received approvals for additional products including USD money market and fixed-income funds, although these should be distinguished from Special Funds. Separately, the Green Investment Fund LLP approved in August is being established by Britam Asset Managers as an Alternative Investment Fund targeting growth-stage green businesses in Kenya and the wider East African Community.
Mansa-X Shows How Large the Segment Has Become
The rise of Special Funds is already heavily concentrated around Standard Investment Bank’s Mansa-X franchise.
At the end of March 2026, the Mansa-X Special Fund KES held approximately KES 132.2 billion, accounting for 64.9% of all Special Fund assets, while the USD fund held about KES 17.4 billion, equivalent to another 8.6%.
The company’s first-half performance update (Sib) reported a 10.97% net return for the KES fund over the first six months of 2026 and 6.54% for the USD fund over the same period.
The scale achieved by Mansa-X demonstrates that Kenyan investors are willing to allocate substantial capital to strategies extending beyond traditional money market and fixed-income products.
What the Growth Could Mean for the NSE
More Special Funds do not automatically translate into the same amount of new money entering Nairobi-listed equities. Many of these vehicles can invest across fixed income, offshore securities, alternatives and other asset classes.
However, managers whose mandates include domestic equities create additional pools of institutional capital that can participate in listed markets. Over time, greater institutional activity can support trading liquidity and price discovery, particularly in larger and more liquid counters.
Competition for quality securities could also increase as more managers search for assets capable of meeting their return and risk objectives. At the same time, tactical rebalancing, redemptions and profit-taking can add trading activity in both directions, meaning more fund participation should not automatically be interpreted as permanently higher equity prices.
The wider expansion of licensed intermediaries (CMA) is also strengthening the industry’s infrastructure. Kestrel Capital has upgraded from a Stockbroker to a Broker-Dealer licence, while Hass Crest Capital received a Fund Manager licence, Livonna Advisory Partners an Investment Adviser licence and Liaison Wealth a Corporate Trustee licence.
More Choice Also Requires Better Comparison
For investors, the growth of Special Funds offers significantly broader choice, but the category name alone says little about whether a particular fund is suitable.
The important questions are what assets the fund actually owns, whether it uses derivatives or leverage, which currencies it is exposed to, how liquid the portfolio is, what withdrawal restrictions apply, and how much investors pay in management and performance fees.
Investors should also distinguish between actual historical returns and annualised figures, understand whether distributions are paid or reinvested, and assess performance against the risks taken to generate it.
Regulation provides an important framework for governance and investor protection, but it does not make investment returns guaranteed. As Kenya’s Special Fund market becomes larger and more competitive, understanding the strategy underneath each product will matter more than simply choosing the fund carrying the most attractive headline return.
Sources: Capital Markets Authority / Standard Investment Bank / Business Today
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