The Capital Markets Authority (CMA) has licensed three new corporate trustees to support the fast-growing Collective Investment Schemes (CIS) market in Kenya.

In a press release dated Wednesday, May 21, 2025, the CMA said the move aims to boost investor confidence and improve oversight in the management of investment funds.

“The Capital Markets Authority (CMA) has licensed three new corporate trustees to support the growing Collective Investment Schemes (CIS) market in Kenya,” the statement read in part.

“These trustees will provide oversight for investment vehicles such as unit trusts, mutual funds, and other collective investment structures.”

The three new entities are MTC Trust & Corporate Services Limited, Standard Chartered Bank Kenya, and NCBA Group Plc. Each of these organisations will now be responsible for ensuring that fund managers follow the rules and protect the interests of investors.

MTC Trust & Corporate Services Limited is a private firm that offers a wide range of fiduciary and trustee services. The company also provides security trustee services and manages specialised structures for different types of investors.

Standard Chartered Bank Kenya, a familiar name in the financial sector, has now entered the corporate trustee space. The bank has been offering custody services since 2010 and currently holds the largest market share in that segment. With this new role, the bank will now also monitor collective investment funds on behalf of investors.

NCBA Group Plc is also joining the list of licensed corporate trustees. The bank has added corporate trustee services to its existing custody services. “The bank aims to deepen its investment services offering by incorporating CIS trustee functions into its portfolio,”the press release noted.

Market soars past Ksh4B mark

The licensing comes at a time when the demand for collective investment options in Kenya is rising sharply. According to the CMA, the market has now crossed the Ksh400 billion mark. This growth is being driven by both retail and institutional investors who are looking for professional fund management and safer, more diversified ways to invest.

Corporate trustees play an important role in this space. They help ensure that fund managers stick to the rules outlined in scheme documents and operate in line with the law. By doing so, they protect investors from potential risks and mismanagement.

The CMA said the move shows its strong commitment to investor protection and to building a strong and transparent capital markets system.

“The move underscores CMA’s commitment to strengthening investor protection and supporting the growth of a robust, transparent capital markets ecosystem in Kenya,” the statement concluded.