The Capital Markets Authority has approved the registration of 16 new funds across six licensed asset managers and investment banks. The approvals include unit trust schemes, special funds, and an alternative investment fund, and form part of the Authority’s ongoing efforts to deepen Kenya’s capital markets and expand the range of investment products available to both retail and institutional investors.
The new funds span money market, fixed income, equity, balanced, multi asset, and alternative strategies. By increasing product diversity, the CMA is seeking to improve market liquidity, support capital formation, and provide investors with more tailored solutions for different risk appetites and investment horizons.
Specialized Multi Asset and Alternative Strategies
Capital A Investment Bank Limited received approval for two sub funds under its existing unit trust structure. The Capital A Multi Asset Strategy Special Fund in KES and the Capital A Multi Asset Strategy Special Fund in USD are designed as actively managed, event driven portfolios. The funds aim to deliver diversified exposure across equities, fixed income, and other asset classes by adjusting allocations in response to market conditions and specific investment opportunities.
Faida Investment Bank Limited was authorized to launch the KETSA Alternative Investment Fund under the 2023 Alternative Investment Funds Regulations. The fund will allocate capital to private debt, equities, and fixed income securities, with a focus on structured liquidity solutions. A notable feature is its mandate to intermediate institutional capital into investment opportunities within the SACCO ecosystem, creating a bridge between cooperative finance and the formal capital markets.
Umbrella Schemes Expand Retail Access to Diversified Portfolios
The CMA approved two umbrella schemes that allow investors to access multiple sub funds under a single legal structure, simplifying administration and reducing entry costs.
EDC Asset Management Kenya Limited introduced the EDC Kenya Unit Trust Funds with five sub funds. The lineup includes the EDC Kenya Money Market Fund for short term liquidity management, the EDC Kenya Fixed Income Fund for income focused investors, the EDC Kenya Dollar Income Fund for foreign currency exposure, the EDC Kenya Balanced Fund for moderate risk profiles, and the EDC Kenya Equity Fund for long term capital growth. The structure enables investors to rebalance across asset classes without exiting the umbrella scheme.
Pergamon Investment Bank Limited received approval for the Pergamon Unit Trust Scheme with six sub funds. These include the Pergamon Money Market Fund in KES, the Pergamon Money Market Fund in USD, the Pergamon Equity Fund, the Pergamon Fixed Income Fund, the Pergamon Balanced Fund, and the Pergamon Special Diversified Income Fund in KES. The inclusion of both KES and USD denominated money market funds provides investors with options for currency diversification and inflation hedging.
Innovative and Converted Funds Target Absolute Returns and Broader Mandates
Meridian Asset Management Limited is launching the Meridian Kenya Shilling Total Return Special Fund. The fund’s objective is to maximize absolute returns through a combination of capital appreciation and income generation, while maintaining a conservative approach to capital preservation. The strategy is expected to appeal to investors seeking yield enhancement without taking on excessive equity market risk.
Nabo Capital Limited received approval to convert the Nabo Africa Balanced Fund in USD into a special fund now known as the Nabo Ubuntu Special Fund. The conversion allows the fund to operate under the broader investment mandate permitted by the Special Fund framework. The portfolio will pursue long term appreciation through dynamic multi asset allocation across equities, derivatives, commodities, and currencies. The manager also intends to employ opportunistic alpha generation strategies to enhance performance in varying market cycles.
Regulatory Safeguards and Market Implications
CMA reiterated that all newly approved funds must comply with existing disclosure, valuation, and reporting requirements. Investors are advised to review fund prospectuses and key investor information documents to understand investment objectives, fees, risks, and liquidity terms before committing capital. The Authority also emphasized that transactions should only be conducted through licensed and approved capital markets intermediaries.
The expansion of fund offerings is expected to support greater participation from retail investors, pension schemes, and SACCOs seeking structured investment vehicles. By broadening the investable universe and introducing more specialized mandates, the market is likely to see improved depth and efficiency in price discovery and capital allocation.
