Unit trust funds continue to play a critical role in Kenya’s investment landscape, offering individuals and institutions access to professionally managed portfolios across money markets, fixed income, equities, and alternative assets. As interest in collective investments grows, one thing matters more than anything else: licensing by the Capital Markets Authority (CMA).
In this guide, we break down licensed unit trust fund investments in Kenya, based strictly on official CMA records, to help investors make informed and compliant decisions.
Why CMA Licensing Matters
The Capital Markets Authority (CMA) is Kenya’s financial markets regulator. Any unit trust fund operating legally in Kenya must be licensed and approved by CMA.
Investing in CMA-licensed funds ensures:
- Regulatory oversight and investor protection
- Clear disclosure of investment objectives and risks
- Professional fund management and custodianship
- Compliance with Kenyan capital markets laws
If a fund or fund manager is not on the CMA’s licensed list, investors should proceed with extreme caution.
Categories of Licensed Unit Trust Funds in Kenya
Based on CMA records, licensed unit trust funds in Kenya fall into several broad categories:
1. Money Market Funds
These are among the most popular investment vehicles in Kenya due to their liquidity and relatively low risk.
Typical features:
- Investment in treasury bills, bank deposits, and short-term instruments
- Ideal for emergency funds and short-term savings
- Daily interest accrual with easy withdrawals
Licensed providers include multiple fund managers offering KES and USD-denominated money market funds, including conventional and Shariah-compliant options.
2. Fixed Income Funds
Fixed income unit trusts invest in longer-term debt instruments such as government bonds and corporate debt.
Key benefits:
- Higher potential returns than money market funds
- Suitable for medium- to long-term investors
- Available in both local and foreign currency
Some licensed funds also offer Shariah-compliant fixed income products, catering to faith-based investors.
3. Equity Funds
Equity unit trusts invest primarily in listed shares, both locally and internationally.
What to know:
- Higher risk, but higher long-term return potential
- Suitable for long-term wealth creation
- Often focused on NSE-listed stocks or offshore equities
CMA records show several licensed Kenya-focused, regional, and international equity funds, including USD-denominated options.
4. Balanced & Multi-Asset Funds
Balanced funds combine equities, fixed income, and sometimes money market instruments in one portfolio.
Why investors choose them:
- Diversification across asset classes
- Reduced volatility compared to pure equity funds
- Ideal for investors seeking steady growth
Multi-asset and balanced unit trust schemes are offered by several licensed fund managers in Kenya.
5. Offshore & Specialised Funds
CMA has also licensed offshore and specialised unit trust funds, expanding investor access to global markets and alternative assets.
These include:
- Offshore equity funds
- Offshore fixed income funds
- Fund-of-funds structures
- Technology, commodities, agriculture, and impact-focused funds
Most offshore funds are USD-denominated and target investors seeking geographical diversification.
6. Shariah-Compliant Unit Trust Funds
Kenya’s capital markets have seen steady growth in Islamic finance products.
Licensed Shariah-compliant offerings include:
- Shariah money market funds
- Shariah fixed income funds
- Shariah multi-asset and special funds
These funds are structured to comply with Islamic finance principles and are supervised by Shariah advisory boards.
Recently Approved & Pending Unit Trust Schemes
CMA records also indicate new unit trust schemes approved or pending approval in 2025, including:
- Newly registered money market and balanced funds
- Additional USD-denominated investment products
- New entrants expanding competition in the fund management space
This signals continued growth and innovation in Kenya’s collective investment sector.
How to Verify a Licensed Unit Trust Fund
Before investing, always:
- Check the CMA official website under “Licensees”
- Confirm the fund manager, trustee, and custodian
- Review the fund’s Information Memorandum
- Ensure the fund matches your risk profile and investment goals
Never rely solely on marketing material or social media promotions.
Final Thoughts
Kenya’s unit trust market is diverse, regulated, and increasingly sophisticated. From low-risk money market funds to offshore and specialised investment vehicles, CMA-licensed unit trust funds offer investors structured and transparent ways to grow wealth.
As always, regulation is your first line of defense as an investor. Stick to licensed funds, understand the risks, and invest with a long-term perspective.
For more insights on investing, savings, and personal finance in Kenya, stay tuned to Financial.co.ke.
