Kenyans urged to diversify investments beyond land, real estate

Kenyans have been urged to diversify investments beyond land and tap opportunities in exchange-traded funds (ETFs) and global capital markets.

This comes amid growing deposits “sitting idle” in fixed deposits and continued investment in land and property, with an oversupply in the real estate market limiting returns.

According to fund manager Ndovu Wealth, about Sh2 trillion is currently held in fixed deposits in Kenya, funds that risk losing value when adjusted for inflation.

The firm argues that reallocating part of these savings into diversified funds could enhance returns over time.

Despite rising awareness, participation in capital markets remains low across Africa, with only about three per cent of the population actively investing, compared to significantly higher levels in developed markets.

“Historically, many Kenyans have been told that wealth creation lies in buying land. But land is often illiquid and does not always deliver optimal returns,” Ndovu Wealth Limited CEO and co-founder Radhika Bhachu said yesterday.

She spoke in Nairobi yesterday during the launch of the fund’s Kibaba Multi-Asset Special Fund (‘Kibaba Fund’).

The Fund is a collective investment scheme offering structured, diversified exposure across global asset classes.

The Kibaba Fund is denominated in both US dollars and Kenyan shillings, targeting medium to long-term investors with a moderate risk appetite.

The minimum initial investment is  Sh250,000 for the Kenya Shilling Fund and $2,500 for the US Dollar Fund.

 “We need to move towards more diversified, income-generating and liquid investments,” she said.

Bhachu noted that while real estate still has a place in investment portfolios, shifting market dynamics, including oversupply in some segments and rising maintenance costs, have reduced its attractiveness compared to capital market instruments.

The fund manager licensed by the Capital Markets Authority targets investors seeking long-term growth through a diversified portfolio spanning equities, fixed income, commodities and ETFs, with allocations actively managed in response to market trends.

The Kibaba Fund invests across global markets, including the US, Europe and emerging economies such as India and China, while also maintaining exposure to local opportunities.

It also includes commodities such as gold and oil to hedge against inflation and global volatility.

Ndovu is also leveraging its digital platform to enhance transparency, allowing investors to track performance daily—a departure from the quarterly reporting typical in the industry.

“Kenyans are highly digital and want real-time visibility of their investments. Our platform allows them to see exactly how their money is performing at any time,” Bhachu said.

The launch comes amid growing interest in alternative investments as economic uncertainty, rising inflation and global disruptions—particularly in oil supply—continue to impact household incomes and savings.

As of December 2025, about Sh679.6 billion was being managed by 41 investment firms in Kenya, with 55 approved Collective Investment Schemes that had 234 registered funds.

Out of these, 41 were active and reporting. The Money Market Fund remains the most preferred investment vehicle, followed by fixed income funds, equity funds, balanced funds and special funds.

The industry grew by 14 per cent, rising from Sh596.3 billion (Q2 2025) to Sh 679.6 billion (Q3 2025).

Ndovu head of operations, Jonathan Ogutu, said: “We are seeing more Kenyans move beyond money market funds and explore new ways of growing wealth. The idea is to build wealth gradually through disciplined investing.”

Ndovu, which has served over 200,000 clients in its five years of operation, expects stronger uptake of such funds as investors seek flexible, diversified and professionally managed investment options.