Kenya’s Capital Markets Authority (CMA) has approved the establishment of new collective investment schemes (CIS) and 10 sub-funds by three major asset managers, as total assets under management in the segment cross the $3.8 billion mark.
The latest approvals come amid rising investor appetite for diversified investment options, including offshore and foreign currency-denominated funds, according to the regulator.
“These approvals reflect growing investor confidence and increased appetite for diversified investment options, including foreign currency-denominated and offshore funds,” said CMA’s chief executive officer, Wyckliffe Shamiah, in a statement on Monday.
The authority said assets under management in collective investment schemes had surpassed KES 500 billion ($3.8 billion), underscoring the growth in demand for professionally managed pooled funds in the country.
Among the firms granted new approvals is Sanlam Investments East Africa, which received clearance to launch a new sub-fund under its existing structure.
The new vehicle, the Sanlam Special GBP Fixed Income Fund, will be denominated in Great Britain Pounds (GBP), giving investors access to fixed-income securities in foreign currency.
ALA Capital Limited also secured approval to register a full collective investment scheme—the ALA Capital Collective Investment Scheme (ALA CIS).
It comprises six sub-funds: “ALA Balanced Fund, ALA Multi-Asset Special Fund, ALA Equity Fund, ALA Fixed Income (KSH) Fund, ALA Money Market Fund (USD), and ALA Money Market Fund (KSH).”
In addition, VCG Asset Management Limited received the green light to register three sub-funds under the VCG Offshore Opportunities Special Funds umbrella.
These include the VCG Offshore Money Market Fund (KSH), VCG Offshore Money Market Special Fund (USD), and VCG Offshore Fixed Income Special Fund (KSH).
A collective investment scheme is a fund that pools capital from multiple investors to invest in a diversified portfolio of assets such as equities, bonds, or money market instruments.
When investors within a scheme have different risk profiles or investment goals, they may opt for a sub-fund — a smaller vehicle with its own strategy, asset mix, and performance profile, while benefiting from the shared infrastructure of the main scheme.
The approvals are expected to deepen Kenya’s capital market, enhance investor choice, and support product innovation across the fund management space.
New corporate trustees enter the market
The development follows the licensing of three corporate trustees in May 2025 to support Kenya’s expanding CIS market.
CMA said the new entrants will provide oversight and fiduciary services for investment vehicles such as unit trusts, mutual funds, and other collective structures.
The newly licensed entities include MTC Trust & Corporate Services Limited, and two Tier I lenders: Standard Chartered Bank Kenya, and NCBA Group Plc.
MTC Trust offers a broad range of trustee and fiduciary services to private entities and also manages specialised structures.
Standard Chartered Bank Kenya, a major player in the custody services market since 2010, has now expanded into corporate trustee services.
NCBA Group Plc was also licensed to offer trustee services as part of a broader custody and investment services strategy.
CMA said the addition of corporate trustees is aimed at improving market integrity, governance, and investor protection as the collective investment segment continues to grow.
The conversion to U.S dollars was done using the exchange rate KES 129.2/$1 as of July 15, 2025
