Collective Investment Schemes assets exceed Sh316 billion
Money Market Funds (MMFs) has remained the most popular vehicle, accounting for Ksh 196.8 billion
The value of combined assets under Collective Investment Schemes (CIS) in Kenya – such as money market and fixed income funds has crossed over Ksh 316 billion.
Wyckliffe Shamiah, CEO, Capital Market Authority said the growth of assets under CIS in Kenya has driven the significant interest in the fund management license category. The accreditation of Tradiam Investment Services Ltd brings the total number of licensed fund managers in Kenya to 43.
According to Shamiah, the funds’ assets under management has increased by 25.4 per cent to Ksh316.4 billion from Ksh254.06 billion in June, 2024 to Ksh316 in December 2024.
Of all the assets under CIS, Shamiah noted that the Money Market Funds (MMFs) has remained the most popular vehicle, accounting for Ksh 196.8 billion, which is 62 per cent of all funds under management, down from 67.4 per cent.
Other funds such as Fixed Income Fund (Ksh 53.5 billion), Equity Fund (Ksh 2.3 billion), Balanced Fund (Ksh 1.3 billion), Other Funds (Ksh 62.4 billion) take up 32.6 per cent share.
Shamiah said this during the issuance of license to Tradiam Investments Services Limited to operate as a fund manager and approval of Gulfcap Investment Bank to register the Ziidi Shariah Money Market Fund.
Ziidi Shariah Money Market Fund is a Shariah-compliant investment product designed to cater to the growing demand for Islamic finance in Kenya.
Tradiam Investments Services will target both institutional and retail clients. For institutional clients, the target includes pension schemes, insurance companies, and corporates seeking portfolio management services, while the retail investors under consideration are individuals looking for investment opportunities through collective investment schemes.
The Ziidi Shariah Money Market Fund will operate as a standalone fund with its own distinct incorporation documents and promoter. The fund will target registered M-PESA customers who either profess the Islamic faith or prefer to invest in Shariah-compliant financial products.
The initiative of the firm is in line with the CMA’s efforts to promote inclusive and diverse investment opportunities within Kenya’s capital markets.
With this approval, the number of licensed firms offering Shariah-compliant unit trust funds in Kenya now stands at seven, reflecting the increasing interest and growth potential of Islamic finance in the country.
Commenting after approval, Shamiah noted that the approval marks a significant milestone in the ongoing efforts to promote Islamic finance within Kenya’s capital markets.
“We believe Islamic finance holds immense potential, which can be unlocked through creating an enabling environment for such opportunities to thrive,” Shamiah said.
