Kenyan investors are increasingly moving away from Money Market Funds (MMFs) to alternative investment options such as Fixed Income Funds (FIFs) and Special Funds, as they seek higher returns in a changing financial landscape.
A new report by the Capital Markets Authority (CMA) shows that while MMFs remain the most popular investment vehicle, their dominance has steadily declined over the past four years. According to the regulator’s Collective Investment Schemes (CIS) report for the fourth quarter of 2025, MMFs’ market share has dropped significantly from 90 per cent in 2021 to 56 per cent in 2025.
The shift reflects a growing appetite among investors for better returns, with many turning to medium-risk investment products that offer improved yields compared to traditional low-risk options. Fixed income and special funds have recorded notable growth during this period, attracting both individual and institutional investors.
The CMA attributes this trend to increased awareness among Kenyans, with more investors becoming financially informed and willing to diversify their portfolios beyond conventional options. The evolving economic environment has also played a role, pushing investors to explore opportunities that can offer higher earnings.
Among the top-performing special funds, Mansa-X has emerged as a leading option, followed by Oak Multi Asset and Madison Wealth Fund. These funds have gained popularity for their ability to generate stronger returns, although they come with slightly higher risk levels compared to MMFs.
Despite the shift, MMFs continue to serve as a critical entry point for many Kenyans beginning their investment journey. Their simplicity, accessibility and relatively low risk make them attractive, especially for first-time investors looking for stable and liquid options.
Most of these investment funds, including MMFs and special funds, channel their resources into government securities such as Treasury bills and bonds, which remain a reliable source of income.
Data from the CMA also highlights the leading players in the MMF space, with Sanlam MMF topping the list with Ksh114.16 billion in assets, representing 27.1 per cent of the market. CIC MMF follows with Ksh78.93 billion, while ABSA Shilling MMF, Old Mutual MMF and Co-operative MMF also rank among the top funds managing billions of shillings in investor capital.
The latest trends signal a shift in investor behaviour, as Kenyans continue to seek a balance between risk and return in an evolving financial market.
 to alternative investment options such as Fixed Income Funds (FIFs) and Special Funds, as they seek higher returns in a changing financial landscape.){kind=link}