CMA okays new collective investment schemes, sub-funds
By Noel Wandera, July 15, 2025Capital Markets Authority (CMA) has approved a raft of new collective investment schemes and sub-funds, signalling renewed momentum in the capital markets and growing investor appetite for diversified, currency-hedged products.
In a move designed to expand both product depth and access, the regulator cleared three major players, including Sanlam Investments East Africa, ALA Capital Limited, and VCG Asset Management, to launch new funds targeting both local and offshore opportunities.
Wyckliffe Shamiah, CMA Chief Executive, said the approvals reflect growing investor confidence and increased appetite for diversified investment options, including foreign currency-denominated and offshore funds.
“We are committed to supporting the development of innovative capital markets products that enhance investor choice and contribute to economic growth,” he said.
Sanlam Investments East Africa received approval to establish a new sub-fund under its existing structure, the Sanlam Special GBP Fixed Income Fund.
The unit will be denominated in Great Britain Pounds (GBP), offering investors exposure to fixed-income securities in foreign currency.
The move by Sanlam reflects a wider trend among fund managers to provide vehicles that offer a hedge against domestic currency volatility, particularly in an environment of tightening global rates and growing cross-border investment flows.
CMA also cleared ALA Capital Limited to register the ALA Capital Collective Investment Scheme (ALA CIS), which includes six sub-funds cutting across equities, balanced, multi-asset, and money market strategies.
The approval includes both Kenya shilling and US$ denominated money market funds, which points to growing retail and institutional interest in currency-linked cash management tools.
With inflation stabilising and interest rates edging lower, managers appear to be positioning their fund architecture to cater to varying investor risk appetites and liquidity preferences.
Equally, VCG Asset Management, a relatively newer entrant, secured approval from the regulator to launch three products under the VCG Offshore Opportunities Special Funds umbrella.
These include two money market funds, one denominated in Kenyan shillings and the other in US$, as well as a fixed income fund.
The approvals come at a time when the collective investment scheme sector in Kenya has surpassed Ksh500 billion in total assets under management, according to the CMA.
That milestone underscores the sector’s rapid growth, driven by increased participation by investors.