A new report by the Capital Markets Authority (CMA) shows that Kenyan investors are slowly shifting away from Money Market Funds (MMFs) toward Fixed Income Funds (FIFs) and Special Funds.

According to the CMA’s Collective Investment Schemes (CIS) Q4 report for October to December 2025, MMFs remain the most popular investment option, but their market share has declined significantly from 90 per cent in 2021 to 56 per cent in 2025.

“The growth of fixed-income funds hit double digits post-December 2021, reducing the dominance of money market funds from 90 per cent in December 2021 to 56 per cent in December 2025,” CMA revealed.

The significant drop was witnessed within the four years as investors sought higher returns, which are mostly offered by the two alternative medium-risk funds.

The CMA also noted that this shift reflected a fast-changing and volatile market where investors are becoming more informed and willing to diversify their portfolios..

As per the regulator, Mansa-X stands out as the best performing special fund, followed by Oak Multi Asset, Madison Wealth Fund in second and third places, respectively.

CMA, however, noted that even with rising competition, MMFs are expected to remain a key entry point for many Kenyans beginning their investment journey due to their simplicity, accessibility, and relatively low risk.

An MMF focuses on low-risk, stable returns and easy access to cash, while a special fund targets higher returns through specific investments, with greater risk and less liquidity.

Most of the MMFs and special funds invest heavily in government securities such as Treasury bills and bonds, which continue to provide reliable income streams throughout the year.

Top MMFs in Kenya

CMA data showed that Sanlam MMF leads with Ksh114.16 billion in assets, representing 27.1 per cent of the market, followed by the CIC MMF, which holds Ksh78.93 billion, equivalent to 18.7 per cent.

Other major players include the ABSA Shilling MMF with Ksh26.18 billion, Old Mutual MMF at Ksh24.28 billion, and the Co-op MFF with Ksh21.61 billion.

ICEA Lion, KCB, Ziidi, Britam, and Etica Money Market Funds also rank among the top ten, each managing billions in investor funds.