More Kenyans are shifting their savings into collective investment schemes, driving total fund assets to record highs and signalling a growing appetite for safer, higher-yield returns amid a cooling interest rate environment. 

The latest figures from the Capital Markets Authority show that fund managers held nearly half a trillion shillings in assets by the end of March 2025, with money market funds dominating the space. 

The surge points to a shift in investor strategy, especially among retail savers and the middle class, who are moving money away from traditional deposit accounts into income-generating funds. 

“The total assets under management (AUM) by the Collective Investment Schemes (CIS) amounted to Ksh496.2 billion at the end of March 31, 2025, representing a 28 per cent increase from Ksh389.2 billion reported at the end of the quarter ended December 31, 2024,” the Capital Markets Authority stated in its Q2 2025 bulletin. 

Money market funds continued to be the backbone of this growth, accounting for over four-fifths of the total industry assets. 

“Money Market Funds accounted for the largest share of the total assets under management, recording Ksh417.76 billion, which represented 84.2 per cent of the industry total,” the report added. 

The rise in assets comes against a backdrop of falling savings interest rates, declining Treasury bill yields, and recent cuts to the Central Bank Rate, which was lowered to 9.75 per cent in June.  

In contrast, money market funds have maintained gross annualised returns in the range of 9.5 to 11 per cent, making them more attractive to both retail and institutional investors. 

CIC Asset Management led the pack with Ksh107.66 billion in assets under management, controlling just under 22 per cent of the entire market.   

NCBA Investment Bank followed with Ksh82.56 billion, then Madison Investment Managers with Ksh58.64 billion.

Sanlam Investments and ICEA LION rounded out the top five with Ksh41.17 billion and Ksh38.65 billion, respectively. 

Together, these five managers controlled more than 66 per cent of the market, highlighting a high degree of concentration in the fund management industry. 

Despite this, the increase in new umbrella schemes and the rise of digital investing platforms have created more access points for smaller firms to enter the market.  

Fund managers have also benefited from increased investor education and awareness campaigns around compounding, inflation protection, and diversification.  

For many first-time investors, money market funds offer a low-barrier entry into financial markets without the volatility associated with equities or the long lock-in periods of fixed deposits. 

Digital platforms have played a key role in that growth. Several fintech apps now allow Kenyans to invest as little as Ksh100 into regulated money market funds directly from their phones, with daily interest updates and withdrawal options within 24 hours.  

This flexibility, paired with returns that outpace savings accounts, has made money market funds the default vehicle for short-term cash management. 

Outside of money market products, fixed income and equity funds made modest gains but still account for a small portion of total CIS assets.  

Most investors continue to avoid equity-linked funds due to market volatility, despite recent rallies by counters like Safaricom and Equity Group at the Nairobi Securities Exchange. 

Some analysts say the current structure of CIS products does not yet offer enough variety to compete with more sophisticated options in developed markets.  

However, the Ksh100 billion growth in just one quarter suggests that even within existing fund types, there is plenty of headroom for expansion. 

Increased uptake of CIS products is also helping fund managers assert more influence in capital markets.  

With more cash under management, fund managers are now becoming key players in short-term government securities auctions and major corporate bond placements.