Many Kenyans have been locked out from saving and investing their money because of the big initial capital amounts needed in the money market.Britam Asset Managers has lowered its money market fund entry limit to Ksh1,000 to attract more savers. The Britam Money Market Fund will allow investors to invest from as low as Kshs 1,000 with subsequent top ups of Ksh 1,000.
Previously, investors had to invest a minimum of Ksh10, 000 to get into the fund, with top ups of Ksh5,000. The fund targets Kenyans seeking to invest in low risk, but high interest earning instruments.
The fund invests in quality interest bearing securities and other short-term money market instruments and ensures risks are managed, while preserving the initial capital. The unveiling of this fund comes at a time when overall savings by Kenyans has been on the decline.
According to the World Bank 2016 Kenya country report, the country is lagging behind in savings compared to other economies in the region which are economically less endowed like Uganda and Tanzania.
“Many Kenyans have been locked out from saving and investing their money because of the high initial capital amounts needed in the money market. This fund has, therefore, been designed to address the needs of the small saver,” said Kenneth Kaniu, Britam Asset Managers Chief Executive Officer.
Mr Kaniu said the fund offers alternatives to access credit especially to meet their short term and long-term goals, while enjoying higher returns from their investment by outperforming bank deposit rates.
He said the company has rolled out a marketing campaign dubbed “You Deserve Extra” to create awareness on the need for Kenyans to save more towards their goals.
[crp]
