Key takeaways:
- The authority approved two new unit trust schemes and additional sub-funds under four existing schemes
- The approval adds funds in shillings, dollars, euros and pounds
- Special funds have grown to 23.9% of Kenya’s collective investment schemes market
Kenya’s Capital Markets Authority has approved two new unit trust schemes and additional sub-funds under four existing schemes, expanding the range of regulated investment products available to Kenyan savers.
The Nairobi-based regulator announced the approvals in a press statement dated July 6. The authority said it acted under section 30 of the Capital Markets Act and Regulation 15 of the Capital Markets (Collective Investment Schemes) Regulations, 2023.
Among the new entrants is the Cinemark Unit Trust Fund, promoted by Cinemark Investment Bank Limited, registered with seven sub-funds spanning money market, fixed income and multi-asset strategies in shillings and dollars.
The authority also approved the Karsis Unit Trust Scheme, promoted by Karsis Asset Managers Limited, which carries twelve sub-funds covering money market, fixed income, multi-asset and private-debt strategies across shilling, dollar, euro and sterling denominations.
CMA said the approvals form part of its ongoing effort to deepen Kenya’s capital markets and widen the range of savings and investment options available to investors, from local shilling money market products to multi-currency and multi-asset special funds.
“These registrations will contribute to increased market depth, improved product diversity, enhanced investor choice, and strengthened confidence in Kenya’s capital markets,” the authority said in the statement.
Existing fund managers add new options
Beyond the two new schemes, the authority approved additional sub-funds under four existing unit trusts. Absa Asset Management Limited received approval to register the Absa Global Multi-Asset Special Fund in both dollar and shilling denominations under its existing Absa Unit Trust Funds.
Dry Associates Investment Bank Limited was cleared to add a euro-denominated and a sterling-denominated special fixed income fund to its existing Dry Associates Unit Trust, expanding the scheme’s multi-currency offering.
Madison Investment Managers Limited received approval for a dollar-denominated fixed income special fund under its existing Madison Unit Trust Scheme, while Tradiam Investments Services Limited added shilling and dollar fixed income funds under its Tradiam Unit Trust Scheme.
CMA said all approvals remain subject to continued compliance with applicable regulations and guidelines.
The authority urged investors to review the information memorandum and trust deed of any scheme before investing, weigh their own risk appetite and investment horizon, and deal only with licensed and approved intermediaries.
Special funds have become Kenya’s fastest-growing category
The approvals arrive as special funds, a category of collective investment schemes offering multi-currency and multi-asset strategies, have become the fastest-growing segment of Kenya’s fund management industry.
Special funds overtook fixed income funds to close the first quarter of 2026 at Ksh203.6 billion ($1.57 billion) in assets under management, representing 23.9% of the broader collective investment schemes market, according to industry data.
The shift reflects growing demand among Kenyan investors for products denominated in foreign currencies and diversified across asset classes, rather than the shilling-based money market and fixed income funds that have traditionally dominated the market.
Fund managers have responded by rolling out dollar, euro and sterling-denominated offerings in quick succession, a trend reflected in this week’s approvals covering four currencies across six institutions.
CMA was established in 1989 under the Capital Markets Act, Cap 485A, and is responsible for regulating and developing Kenya’s capital markets, including licensing market intermediaries, regulating public securities offers and overseeing collective investment schemes.
The authority also regulates commodity markets and online forex trading in the country.
