NAIROBI, Kenya- Kenya’s Collective Investment Schemes (CIS) have reached a major milestone, with their combined assets surpassing Sh250 billion for the first time as of June 2024.
This marks a significant leap in the investment landscape, driven by increased investor interest in diversified funds such as Money Market Funds (MMFs) and Fixed Income Funds.
According to the latest data from the Capital Markets Authority (CMA), assets under management in CIS surged by 13pc to Sh254.06 billion in June 2024, up from Sh225.36 billion in March.
Money Market Funds (MMFs) remain the dominant choice for investors, commanding 67.4pc of total assets, or Sh171.2 billion. The remaining 32.6pc of assets are spread across Fixed Income Funds (Sh52.1 billion), Equity Funds (Sh 2.6 billion), Balanced Funds (Sh1.4 billion), and Other Funds (Sh26.8 billion).
Among the major players in Kenya’s CIS market, CIC Unit Trust Scheme continues to lead with a 26.3pc market share, managing assets worth Sh66.8 billion.
This reflects a 7.9pc growth from Sh61.9 billion in the first quarter of 2024. Sanlam Unit Trust follows as the second-largest scheme, with assets growing by an impressive 26.7pc to reach Sh37.6 billion, capturing 14.8pc of the market.
Etica Capital emerged as the fastest-growing fund, more than doubling its assets under management by 149.2pc, reaching Sh2.6 billion in June 2024 from Sh1.02 billion in March.
On the other hand, British American Unit Trust Scheme recorded the largest decline, with its assets shrinking to KSh 28.5 billion from KSh 30.03 billion over the same period.
Kenya’s CIS market saw the addition of two new entrants during the second quarter of 2024: Faulu Unit Trust Scheme and MyXeno Unit Trust Scheme, which pooled assets of KSh 50.7 million and KSh 16.1 million, respectively.
This brings the total number of active Unit Trust Funds to 31 out of 51 approved schemes.
Government securities continue to be the preferred investment, accounting for 39.2pc of assets under management. Fixed deposits make up 33.4pc, while other investments include cash and demand deposits (13.9pc), listed securities (9.3pc), unlisted securities (3.3pc), and immovable property (0.4pc).
Interestingly, investments in listed securities saw a remarkable increase of 523pc, totaling KSh 23.7 billion during the review period.
However, investments in government securities saw a slight dip, with Unit Trust Funds reducing their holdings by 7pc to Sh99.7 billion, down from Sh107.6 billion in March 2024.
What is a Collective Investment Scheme?
A Collective Investment Scheme (CIS) is a vehicle where funds are pooled from multiple investors and professionally managed to invest in various assets, such as stocks, bonds, and government securities.
This allows investors to diversify their portfolios while benefiting from the expertise of fund managers.
Kenya’s CIS sector has proven to be a resilient and growing part of the financial ecosystem, offering a mix of stability and growth for both institutional and individual investors.
