CMA approves new collective investment schemes and sub-funds
CMA Chief Executive Officer Wycliffe Shamiah noted that the continued growth in demand for collective investment schemes, which have now surpassed Sh500 billion in total assets under management
The Capital Markets Authority (CMA) has granted approvals to several market players for the establishment of new , in a move aimed at deepening Kenya’s capital markets and enhancing product diversity for investors.
Sanlam Investments East Africa has received approval to establish a new sub-fund under its existing structure, the Sanlam Special GBP Fixed Income Fund. This unit portfolio will be denominated in Great Britain Pounds (GBP), providing investors with exposure to fixed income securities in foreign currency.
In a separate development, ALA Capital Limited has been approved to register the ALA Capital Collective Investment Scheme (ALA CIS), comprising six sub-funds: ALA Balanced Fund, ALA Multi-Asset Special Fund, ALA Equity Fund, ALA Fixed Income (KES) Fund, ALA Money Market Fund (USD), ALA Money Market Fund (KES)
In addition, VCG Asset Management Limited has received approval to register three funds under the VCG Offshore Opportunities Special Funds umbrella. These include VCG Offshore Money Market Fund (KES), VCG Offshore Money Market Special Fund (USD), VCG Offshore Fixed Income Special Fund (KES).
The CMA Chief Executive Officer Wycliffe Shamiah welcomed the approvals, noting the continued growth in demand for collective investment schemes, which have now surpassed Sh500 billion in total assets under management.
“These approvals reflect growing investor confidence and increased appetite for diversified investment options, including foreign currency-denominated and offshore funds,” said Shamiah.
The Authority remains committed to supporting the development of innovative capital markets products that enhance investor choice and contribute to economic growth.
In May, CMAL also licensed three new corporate trustees to support the growing Collective Investment Schemes (CIS) market in Kenya. The trustees will provide oversight for investment vehicles such as unit trusts, mutual funds, and other collective investment structures.
They included MTC Trust & Corporate Services Limited, which offers a broad range of fiduciary and trustee services to private entities. The firm also provides security trustee services and manages specialized structures.
Standard Chartered Bank Kenya, which has now expanded into corporate trustee services. The bank has been a major player in custody services since 2010 and currently holds the largest market share in that segment.
NCBA Group Plc, which has been licensed to offer corporate trustee services as part of its broader custody solutions. The bank aims to deepen its investment services offering by incorporating CIS trustee functions into its portfolio.
The licensing of these trustees comes at a time when demand for Collective Investment Schemes continues to rise, crossing the Ksh.400 billion mark. This is mainly driven by both retail and institutional investors seeking professionally managed, diversified investment options. Corporate trustees play a critical role in safeguarding investors’ interests by ensuring that fund managers operate in compliance with scheme documents and regulatory requirements.
The move underscores CMA’s commitment to strengthening investor protection and supporting the growth of a robust, transparent capital markets ecosystem in Kenya.
