The Capital Markets Authority (CMA) has reported a notable shift in the investment choices of Kenyans, with Special Funds and Fixed Income Funds recording faster growth than Money Market Funds (MMFs) during the second quarter of 2026.
According to the CMA’s Collective Investment Schemes (CIS) Quarterly Report for the period ending June 30, 2026, Special Funds recorded the strongest growth, expanding by 24 per cent during the quarter. Fixed Income Funds followed with a 15 per cent increase.
While MMFs remained the largest and most popular investment option among collective investment schemes, their growth was comparatively slower at four per cent over the same period.
“The growth of fixed-income funds hit double digits post-December 2021, reducing the dominance of money market funds from regions of 90 per cent in March 2020 to 49 per cent in June 2026,” CMA revealed.
The latest figures highlight a significant change in the composition of Kenya's collective investment market over the past six years.
In 2020, Money Market Funds accounted for about 90 per cent of investments under collective investment schemes. However, their market share had declined to approximately 48 per cent by June 2026.
At the same time, Special Funds have continued to gain ground, with their share of CIS investments rising from five per cent in March 2020 to 27 per cent by June 2026.
Fixed Income Funds also posted substantial growth over the same period, increasing their share from two per cent in March 2020 to 24 per cent by June 2026, signalling growing investor interest in the investment option.
The changing preference among investors could partly be linked to declining interest rates offered by MMFs over time, compared to Fixed Income and Special Funds, which have continued to offer relatively higher returns.
Best Performing Funds
Under the Special Funds category, Mansa-X emerged as the best-performing fund, followed by Oak Multi Asset and Maddison Wealth Fund.
In the Money Market Fund category, the SanlamAllianz Money Market Fund was identified as the dominant fund, followed by the CIC Money Market Fund and the Old Mutual Money Market Fund.
The CMA report further revealed growing interest among investors in foreign-currency-denominated investment funds.
Assets held in foreign currency-denominated funds increased by 15 per cent, rising from Ksh95.9 billion in March to Ksh110.5 billion by June 2026.
“Foreign currency-denominated funds, including US Dollar, Sterling Pound, and South African Rand, have continued to grow both in popularity and value in terms of assets under management,” the report stated.
“Notably, there has been an increased interest in and application to establish foreign currency-denominated funds from both the existing and new collective investment schemes. Dollar funds are so far the most popular,” it added.
The figures point to a broader diversification of investment preferences among Kenyans, as investors increasingly spread their money across Special Funds, Fixed Income Funds and foreign-currency-denominated products instead of relying heavily on Money Market Funds.
