Money Market Funds (MMFs) have continued to be Kenya’s most popular investment vehicles, as evidenced by their dominance in the Collective Investment Schemes (CIS) or unit trusts’ Assets Under Management (AUM).
In the quarter ended September 30, 2025, MMFs grew their AUM by 7% to KES 400 billion, up from KES 372.8 billion in June 2025, maintaining a commanding 58.9% market share in the CIS industry, ahead of Fixed Income Funds, Equity Funds, Balanced Funds, and Special Funds.
In Q3 2025, Fixed Income Funds and Equity Funds recorded AUMs of KES 136.7 billion and KES 3.3 billion, representing growth of 29% and 15%, respectively, from Q2 2025. Balanced Funds’ AUM grew by 4% to KES 1.7 billion, while Special Funds recorded a sharp 22% growth to KES 137.8 billion.
Among Money Market Funds, Sanlam MMF remained the dominant fund with 25.8% of total MMF AUM, followed by CIC MMF at 21.3%. Other notable MMFs include Absa Shilling Money Market Fund, Old Mutual Money Market Fund, ICEA Lion Money Market Fund, and Co-op Money Market Fund.
The segment’s growth was supported by broad reallocations from bank deposits and savings accounts, as more Kenyans opted for higher-yielding MMFs amid declining returns on fixed-income instruments. With the Central Bank of Kenya (CBK) gradually easing interest rates, demand for liquid, short-term, and low-risk investment options increased, reinforcing the MMF value proposition.
Special Funds and Fixed Income Funds Gain Popularity
Despite MMFs holding the largest share of AUM in the unit trust industry, their dominance has been challenged by the rapid expansion of Special Funds and Fixed Income Funds. As of June 2025, MMFs accounted for 63% of the sector’s KES 596.3 billion AUM. However, Special Funds and Fixed Income Funds have gained popularity, recording the fastest AUM growth of 22% and 29% to KES 137.8 billion and KES 136.8 billion in Q3 2025. Their industry AUM proportions rose to 20.3% and 20.1%, respectively, up from 19% and 17.7% in June 2025.
CIS Assets Under Management
Overall, CIS total assets under management in Q3 2025 grew by 14% to KES 679.6 billion from KES 596.3 billion in the period ended June 30, 2025. The surge in AUM is attributed to growth from existing CIS funds as well as additional funds registered by umbrella schemes that began reporting in 2025. Increased marketing efforts by fund managers also contributed to the expansion.
The number of investors in various CIS funds rose sharply by 128% to 2,958,837 in September 2025, up from 1,299,300 in September 2024, driven by rising market awareness around saving and investing.
