Special funds, a fast-growing segment of Kenya’s collective investment schemes, captured a record 23.9 percent market share in March 2026 as investors increasingly shifted their savings in search of higher returns.
Data from the Capital Markets Authority (CMA) shows that the special funds category continued to gain traction, outpacing the growth of traditional Money Market Funds (MMFs), which have been affected by the prevailing low-interest-rate environment.
Despite remaining the dominant investment vehicle, MMFs saw their market share decline to 51.9 percent in March 2026 from 64.4 percent during the same period last year.
The shift comes as Kenya’s unit trust industry continued to expand, with total assets under management (AUM) rising to Sh851.7 billion in the quarter ended March 2026, up from Sh756.3 billion recorded in December 2025.
According to the CMA, special funds have attracted growing interest from retail investors due to their ability to generate relatively higher returns compared to conventional money market products.
“The trend highlights the continued strong interest in the fund management segment among the general public, particularly the special funds segment,” the CMA said.
Assets under management in special funds increased by 25 percent during the three-month period, rising from Sh129.9 billion in December 2025 to Sh162.4 billion in March 2026.
In contrast, assets held in MMFs grew at a slower pace of four percent to Sh423.7 billion over the same period.
Industry analysts attribute the growth in special funds to increased product innovation by fund managers and rising investor appetite for diversified investment options offering potentially higher yields.
The strong performance of special funds underscores changing investor preferences as savers seek alternatives to traditional money market products amid declining interest rates and evolving market conditions.
The CMA noted that continued innovation within the fund management industry is expected to support further growth in collective investment schemes and deepen participation in Kenya’s capital markets.
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