Kenyans have over Ksh.100B in assets sunk into pooled investment funds


Kenyans have over Ksh.100B in assets sunk into pooled investment funds

In Summary

  • Collective investment schemes refer to a group of pooled accounts and represent monies from individuals, or institutions.
  • CIC Unit Trust Scheme controls about 41.1 per cent of the financial sub-sector represented by Ksh.43 billion in assets.
  • About 44 per cent of funds in the collective schemes are investment in government securities ahead of fixed deposits (34.54%), cash and demand deposits (10.89%) and NSE listed securities at 5.36 per cent.

Kenyans now have more than Ksh.100 billion in assets sunk in pooled investment funds.

This is according to new data from the Capital Markets Authority (CMA) covering the year to December 2020 which shows collective investment schemes (CISs) with Ksh.104.7 billion in assets from Ksh.98 billion at the end of September.

Collective investment schemes refer to a group of pooled accounts and represent monies from individuals, or institutions.

CIC Unit Trust Scheme controls about 41.1 per cent of the financial sub-sector represented by Ksh.43 billion in assets.

Other top schemes with more than a 10 per cent market share include NCBA (11.98%), Britam (11.75%) and ICEA (11%).

In the quarter ending December. Wanafunzi Investments recorded the highest growth in assets which expanded by more than twice while Amana shed 39 per cent in assets as investors continued to flee the scheme after the disclosure of the firm’s lost funds in defunct Nakumatt.

About 44 per cent of funds in the collective schemes are investment in government securities ahead of fixed deposits (34.54%), cash and demand deposits (10.89%) and NSE listed securities at 5.36 per cent.

Other investment classes include offshore investments, other collective schemes and immovable property.

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Story By Kepha Muiruri
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