Surge in retail investors drives licensing of new fund managers

A sharp rise in Kenyans putting money into collective investment schemes (CIS) is fuelling the registration of new fund managers and expansion of existing unit trust products.

Latest data from the Capital Markets Authority (CMA) shows the number of individual investors in unit trusts more than doubled over the past year, climbing from about 1.29 million to nearly 2.96 million.

In response to the heightened activity, the CMA has extended approvals to several applications relating to the licensing of fund managers and the registration of new collective investment products.

“The Capital Markets Authority (CMA) has approved several applications relating to the licensing of a fund manager and the registration of collective investment schemes, in accordance with the Capital Markets Act and the applicable regulatory framework,” CMA said in a statement.

Among the new entrants is Mema Asset Management Limited, which has been granted a fund manager licence.

The firm is authorised to provide investment management services to both local and international investors, including institutional clients and high-net-worth individuals.

It plans to leverage its expertise and strategic networks to offer professional fund management services across the continent.

The regulator has also approved an application by CPF Asset Managers Limited to introduce an additional sub-fund under its existing umbrella scheme.

The new CPF Multi-Asset Special Fund is an open-ended vehicle that will invest in a diversified portfolio of alternative assets, including private equity, private debt, offshore investments and other unlisted securities across Kenya, select regional markets and global markets.

The fund is designed to provide diversification from traditional asset classes while targeting long-term capital growth and sustainable income.

Similarly, Dyer & Blair Investment Bank Limited has received approval to register additional sub-funds under the Dyer & Blair Unit Trust Scheme.

The new products include the Dyer & Blair Fixed Income Fund (USD), the Dyer & Blair Global Multi Asset Strategy Special Fund (KES), and the Dyer & Blair Global Multi Asset Strategy Special Fund (USD).

The boom in investor uptake has been matched by rapid growth in assets under management. CMA figures indicate that assets held by collective investment schemes rose from Sh389.2 billion at the end of 2024 to Sh679.6 billion as at September 30, 2025.