CMA Greenlights New Funds to Deepen Kenya’s Capital Markets

Capital Markets Authority (CMA) has given the green light to a new batch of collective investment schemes, opening more doors for both retail and institutional investors looking for regulated ways to grow their money.

The approvals, confirmed on Tuesday, signal continued efforts by the regulator to deepen participation in capital markets by expanding the range of unit trusts, special funds and alternative investment vehicles available to the public.

The move comes as more Kenyans increasingly shift from informal saving methods to structured investment products such as money market funds and diversified portfolios, especially in a tough economic environment where inflation continues to affect household budgets.

In its announcement, the CMA said the new listings are designed to widen access to safe and structured investment options across different risk levels.

The Authority further emphasised that the initiative is part of its broader strategy to strengthen Kenya’s capital markets, encourage financial innovation, and improve inclusion in investment services across different segments of society.

One of the key highlights is the approval granted to Capital A Investment Bank, which will now roll out two new special funds under its existing unit trust structure. These include the Capital A Multi Asset Strategy Special Fund in Kenyan shillings and another in US dollars.

The funds will adopt an actively managed approach, investing across different asset classes such as equities, fixed income, and other market instruments to help investors spread risk while targeting returns.

The regulator noted that the funds are aimed at investors who prefer diversified strategies rather than putting money into a single asset class.

In another major approval, Faida Investment Bank received permission to establish the KETSA Alternative Investment Fund under the Capital Markets (Alternative Investment Funds) Regulations, 2023.

The fund will focus on a mix of private debt, equities, money market instruments, and fixed income securities, with a special emphasis on channelling structured capital into SACCO-related opportunities.

Unlike traditional unit trusts, alternative investment funds typically target more experienced investors and often operate with broader investment mandates, including less conventional markets.

The CMA also cleared EDC Asset Management to introduce an umbrella structure known as the EDC Kenya Unit Trust Funds.

The scheme will include five sub-funds covering money market, fixed income, dollar income, balanced, and equity strategies, giving investors flexibility depending on their risk tolerance and financial goals.

Similarly, Pergamon Investment Bank was approved to launch its own unit trust scheme consisting of six sub-funds, expanding access to diversified income, equity, and balanced investment options for the public.

In addition, Meridian Asset Management will roll out the Meridian Kenya Shilling Total Return Special Fund, which focuses on achieving both capital growth and income generation while maintaining a level of capital protection.

Nabo Capital also received approval to transform its Nabo Africa Balanced Fund (USD) into the Nabo Ubuntu Special Fund. The revamped fund will pursue long-term growth through a flexible investment approach spanning equities, commodities, currencies, derivatives, and fixed income instruments.

The CMA noted that investors should take time to understand product structures, risk levels, and fund objectives before committing their savings. It also reminded the public to only engage licensed intermediaries to avoid exposure to fraudulent schemes, which have become increasingly common in Kenya’s growing investment sector.

These approvals build on earlier reforms by the regulator aimed at expanding the number of licensed market players. Earlier in 2026, firms such as Rock Advisors Limited were upgraded to investment bank status, allowing them to expand services including advisory, wealth management, and trading activities.