NAIROBI, Kenya- Kenya’s capital markets are set for a wider range of investment products after the Capital Markets Authority (CMA) approved new collective investment scheme sub-funds, an alternative investment fund and several licenses for financial market intermediaries.
The approvals, announced by the CMA on Tuesday, August 12, are expected to expand regulated savings and investment options while supporting innovation and deeper participation in Kenya’s capital markets.
The new products cover money market, fixed income, multi-asset, global equity and climate-focused investments.
“The approvals broaden the range of regulated savings and investment options available to Kenyan investors, from money market and fixed income products to actively managed multi-asset and global strategies and climate-focused alternative investments,” the CMA said.
Britam gets approval for new investment funds
Among the latest approvals, the CMA authorized Britam Asset Managers Limited to register two new sub-funds under the existing Britam Unit Trust Funds umbrella scheme.
They are the Britam Multi Asset Special Fund (KES) and the Britam Enhanced Global Equities Special Fund (USD).
The Multi Asset Special Fund will seek long-term capital growth and income through a diversified, actively managed portfolio covering local and international equities, fixed-income securities, alternative assets and tactical investment strategies.
The Enhanced Global Equities Special Fund will give investors exposure to global equity markets while allowing the investment to be denominated in shillings, potentially reducing the need for investors to maintain foreign-currency accounts directly.
The CMA also approved additional products under the Zimele Unit Trust Funds umbrella.
These include the Zimele USD Money Market Fund, Zimele USD Fixed Income Fund, Zimele Fixed Income Fund, Zimele Education Plan and Zimele Saving Plan.
The products provide both shilling- and dollar-denominated investment options alongside savings products designed around specific financial goals.
New licenses for financial market players
The regulator also approved several licenses for companies operating in Kenya’s capital markets.
Kestrel Capital has been upgraded from a stockbroker to a Broker-Dealer license, allowing it to operate under the broader regulatory framework applicable to broker-dealers.
Hass Crest Capital received a Fund Manager license, while Livonna Advisory Partners was granted an Investment Adviser license.
Meanwhile, Liaison Wealth received a Corporate Trustee license.
The approvals expand the number of regulated firms providing investment management, advisory, brokerage and trustee services to investors.
CMA approves green investment fund
The regulator also approved Britam Asset Managers (Kenya) Limited to register the Green Investment Fund LLP as an Alternative Investment Fund under the Capital Markets (Alternative Investment Funds) Regulations, 2023.
The fund will target growth-stage green and greening Micro, Small and Medium Enterprises (MSMEs) primarily operating in Kenya and the wider East African Community.
According to the CMA, the fund will focus on businesses involved in climate change mitigation, adaptation and resilience while supporting Kenya’s national and international climate objectives.
It will use different financing structures, including direct equity, mezzanine financing, quasi-equity and other flexible arrangements.
The green fund comes as demand grows for capital that supports climate-focused businesses while offering investors opportunities beyond traditional asset classes.
