This guide focuses on the second path. Because most Kenyans don’t realise just how many doors are open to them right now. There are five types of professional investment funds available to any Kenyan, some starting from as little as KSh 100,  plus a bonus real estate option at the end. Below, we break them all down with real fund names, the latest May 2026 returns, and exactly where to start.
Last updated: June 2026. Fund returns change monthly; the performance tables below are refreshed regularly. Always confirm current figures with the fund manager before investing.
Transparency note: Some links in this article are affiliate links. This doesn’t affect what you pay, and we only feature CMA-licensed funds we’d consider ourselves. Always do your own research and verify any fund at cma.or.ke before investing.
A Quick Word on DIY Investing
DIY investing means you go direct: you open the necessary accounts, do the research, and invest yourself. It works; it has produced wealthy Kenyans. But it demands real time, financial knowledge, and emotional discipline that most people underestimate. When a stock drops 30%, you decide whether to hold or cut.
We’re covering the DIY route: the NSE, Treasury bills, and bonds, in a dedicated guide soon. For today, we focus on the professional route: the five fund types inside Kenya’s unit trust industry.
What Is a Unit Trust (Collective Investment Scheme)?
A unit trust, also called a Collective Investment Scheme (CIS), works like this: you contribute money, and a licensed fund manager pools it with money from thousands of other investors. That combined pool ( often worth billions of shillings ) is invested by a professional team whose entire job is to grow it. You own units proportional to what you put in, and as the fund grows, the value of your units grows.
Three parties protect your money at all times:
- The Fund Manager — the professionals who make the investment decisions. Names like Etica, Zimele, Sanlam, Nabo, and Cytonn.
- The Custodian — a licensed bank that holds your actual assets completely separately from the fund manager’s own accounts. Even if the fund manager shuts down tomorrow, your money is untouchable.
- The CMA — the Capital Markets Authority regulates every fund in Kenya. Before you invest anywhere, verify the fund manager at cma.or.ke. That is your legal protection.
Now, here are the five fund types, from the safest to the highest potential returns.
1. Money Market Fund (MMF)
Risk: Low | Liquidity: High | Horizon: Under 1 year
The Money Market Fund is where most Kenyan investors start, and for good reason. It’s the safest, most liquid fund type available. MMFs invest in short-term government instruments such as Treasury bills, fixed deposits, and bank placements. Your money is never locked, and most funds process withdrawals within 2–3 business days.
The macro picture in mid-2026: The CBK cut its policy rate from 9.0% to 8.75% in February 2026, and for most of the year, that pushed MMF yields down. But there’s been a twist: Treasury bill rates climbed back above 8% in May 2026, the first time in eight months. As of June 2026, the 91-day T-bill sits at 8.55% and the 364-day at 8.76%. Because MMFs hold mostly T-bills, returns actually ticked up in May rather than falling. At the same time, inflation jumped to 6.68% in May (largely on higher fuel prices), so your real return — yield minus inflation — is being squeezed even as gross yields hold.
How Money Market Funds Helped Me Reach My Financial Goals (And How They Can Help You Too)
Top 5 Money Market Funds in Kenya: May 2026
| Rank | Fund | Gross Return | Net Return (After Tax) |
|---|---|---|---|
| 1 | Cytonn MMF | 11.43% | 9.72% |
| 2 | Nabo Africa MMF | 11.34% | 9.64% |
| 3 | Etica Capital MMF | 11.10% | 9.44% |
| 4 | Arvocap MMF | 10.45% | 8.88% |
| 5 | Lofty-Corban MMF | 10.18% | 8.66% |
The market average is 8.99% gross, but the top five funds all deliver above 10% gross. Fund selection is everything.
Special mention — Etica Capital MMF. Etica operates on Sharia-compliant, Islamic finance principles, using profit-sharing instruments instead of conventional interest. For investors who need a halal-compliant vehicle without giving up competitive returns, Etica is the clear benchmark in Kenya, currently third in the market at 9.44% net, neck-and-neck with the top two.
Get started with Etica Capital MMF here (tap here). Sign-up takes minutes, and the minimum is very low.
For dollar investors:Â If you’re worried about KES depreciation, dollar MMFs let you earn in USD. Nabo Africa MMF USD leads at 6.93% gross / 5.89% net, followed by Old Mutual MMF USD (5.72% / 4.86%) and Etica MMF USD (5.68% / 4.83%).
Who is this for? Your emergency fund, short-term savings (a trip, school fees due in six months, a business deposit), or any money currently earning 3% in a savings account that deserves better.
2. Fixed Income Fund
Risk: Low–Medium | Liquidity: Medium | Horizon: 1–3 years
Fixed Income Funds are the most underrated fund type in Kenya right now, and the data makes the case. These funds invest in longer-dated government and corporate bonds: Treasury bonds, infrastructure bonds, and corporate paper. Here’s the insight that changes everything: when CBK cuts interest rates, bond prices go up. Fixed Income Funds hold those long-dated bonds, so they can benefit from a falling-rate environment in a way MMFs simply cannot.
Top 5 Fixed Income Funds in Kenya: May 2026
| Rank | Fund | Gross Return | Net Return |
|---|---|---|---|
| 1 | Mayfair Fixed Income Fund | 16.64% | 14.14% |
| 2 | Nabo Fixed Income Fund | 12.00% | 10.20% |
| 3 | Zimele Fixed Income Fund | 11.22% | 9.53% |
| 4 | Kuza Fixed Income (KES) | 10.83% | 9.21% |
| 5 | Gulfcap Fixed Income | 10.08% | 8.57% |
Mayfair at 16.64% gross is not a typo — it’s the result of consistent, deliberate portfolio management, placing it in a category of its own. The sector average of 11.52% gross is roughly 280 basis points above the MMF market average, a meaningful premium for taking slightly more duration risk.
Zimele Fixed Income Fund deserves a specific highlight. Sitting at number three nationally at 9.53% net, Zimele has built a reputation for consistency and professional management, exactly what you want in a fixed-income product.
Get started with Zimele Fixed Income Fund here.
Who is this for? Someone with a 1–3-year horizon who wants more than an MMF: saving for a car, a business deposit, or school fees two years out. You want income and the benefit of falling rates.
3. Balanced Fund
Risk: Moderate | Liquidity: Medium | Horizon: 3–5 years
Balanced Funds split your investment between equities and bonds: typically 40–60% in each, depending on the fund’s strategy. When stock markets rise, the equity portion captures the upside; when markets dip, the bond portion cushions the fall. The fund manager rebalances automatically.
This is Kenya’s most undiscovered fund type. Most retail investors have never heard of it, which means it’s underutilised and wide open for those paying attention.
An honest note: balanced and equity funds don’t publish clean monthly return tables the way MMFs and fixed income funds do, partly because they’re tiny, together under 1% of Kenya’s entire CIS market. So rather than pretend there are clean monthly return rankings, here are the established category leaders by market share and track record. Verify current returns via the CMA quarterly bulletin.
Leading Balanced Fund Managers in Kenya
| Fund | Manager | Standing |
|---|---|---|
| ICEA Lion Balanced Fund | ICEA Lion | 24% market share — category leader |
| Zimele Balanced Fund | Zimele AM | 20.56% market share — consistent performer |
| Britam Balanced Fund | Britam | Broad East Africa exposure |
| Old Mutual Balanced Fund | Old Mutual | Established, long track record |
| CIC Balanced Fund | CIC | Most accessible minimum entry |
Who is this for? A 3–5 year horizon — saving toward retirement in stages, a child’s university fees, or building medium-term wealth without the stress of pure equity volatility. If you already have your MMF sorted, a balanced fund is the natural next step up.
4. Equity Fund
Risk: High | Liquidity: Medium | Horizon: 5+ years
Equity Funds invest primarily in shares of listed companies on the Nairobi Securities Exchange (NSE) and sometimes regionally across Uganda and Tanzania. This is the professional version of buying stocks yourself: instead of picking individual companies and hoping your research is right, a fund manager with a full research team builds and manages a diversified equity portfolio on your behalf.
The risk is real. Your portfolio will go up and down with the markets. This is not for the money you need in two years.
Leading Equity Fund Managers in Kenya
| Fund | Manager | Standing |
|---|---|---|
| ICEA Lion Equity Fund | ICEA Lion | 34.4% category market share — dominant |
| Britam Equity Fund | Britam | Kenya + Uganda + Tanzania exposure |
| Cytonn Equity Fund | Cytonn | Active management, growth-oriented |
| Sanlam Equity Fund | Sanlam | Largest fund manager by AUM in Kenya |
| CIC Equity Fund | CIC | Accessible minimums, long track record |
The NSE had a strong run; the NSE 20 index rose 56.13% in 2025, one of the strongest performances in recent memory. Equity fund investors who stayed the course captured that growth. That is the argument for patience in equities.
Who is this for? Young investors in their 20s and 30s with a long runway, anyone building a retirement nest egg, and anyone who already has an emergency fund in an MMF and now wants to build real wealth over a decade or more. Time in the market beats timing the market.
5. Special Funds
Risk: Medium–High | Liquidity: Lower | Horizon: Varies
Special Funds are the most exciting — and fastest-growing — category in Kenya’s unit trust market. They’ve grown into the second-largest CIS category in the country: KSh 203.6 billion as of March 2026, nearly 24% of the entire market, second only to money market funds. Remarkable for a category that barely existed a few years ago.
Unlike the other four fund types, special funds have a flexible mandate. They can invest in equities, commodities, currencies, derivatives, and global markets — wherever the fund manager sees the best risk-adjusted opportunity.
Top 5 Special Funds in Kenya: Q1 2026
| Rank | Fund | Manager | Q1 2026 Return | Annualised |
|---|---|---|---|---|
| 1 | MansaX Special Fund (KES) | Standard Investment Bank | 4.74% | ~18.96% |
| 2 | Oak Special Fund | Faida Investment Bank | 4.72% | ~18.88% |
| 3 | Arvocap Almasi Fund | Arvocap | 4.72% | ~18.88% |
| 4 | MansaX USD Special Fund | Standard Investment Bank | 2.88% | ~11.52% |
| 5 | Kuza Momentum Special Fund | Kuza AM | 2.45% | ~9.8% |
An investor who put KSh 300,000 into MansaX at the start of January would have earned roughly KSh 14,220 by the end of March, in a single quarter.
Are Special Funds Worth It? The Truth About Kenya’s Special Funds
MansaX, managed by Standard Investment Bank (the team behind the Ziidi product on M-Pesa), is the standout name in this category and has been for two years running. It’s CMA-regulated, professionally managed, and delivering some of the strongest risk-adjusted returns in the entire Kenyan CIS market.
Explore MansaX here. Read the offering document carefully, understand the lock-in terms, and make sure it fits your risk profile first.
Three Things to Know Before Investing in Any Special Fund
- Lock-in periods. Most special funds require you to commit your money for a minimum period, often three to six months or longer. MMFs are for liquidity; special funds are for growth.
- Higher fees. Management fees and sometimes performance fees apply. Always ask for the net return after all fees and the 15% withholding tax.
- Returns are not guaranteed. These funds invest in volatile assets. The upside is real, and so is the downside. Only invest money you can genuinely leave untouched.
Who is this for? An investor who already has an emergency fund sorted, has a medium-to-long term horizon, and wants to go beyond conventional returns. A powerful next step — not a starting point.
Bonus: Real Estate Through REITs (Vuka)
Risk: Low–Medium | Liquidity: Medium | Horizon: 3–5 years
Where REITs fit: Your MMF gives you around 9–10% net and full liquidity. Special funds chase 18%+ with lock-ins and real volatility. A REIT sits in between; Vuka targets 7–12% per year, paid largely as dividend income and backed by physical buildings. It’s not the highest number on this list. What it adds is a different asset class — real estate — so when the stock market wobbles, this part of your portfolio is driven by rent, not market sentiment.
What you’re buying:
Vuka is Kenya’s first CMA-authorised real estate investment platform, with NCBA Bank as custodian. You invest in the Acorn Student Accommodation I-REIT — the Qwetu and Qejani student residences, managed by Acorn Investment Management, a licensed REIT manager. You can start from KSh 5,000.
The numbers:
In 2025, Acorn’s income REIT posted a net profit of KSh 670 million, up 20.6% year-on-year. Combined assets under management grew 11% to KSh 29.3 billion, with a portfolio approaching 21,000 student beds. Between January and July 2025, the trust cut its borrowings from KSh 2.5 billion to KSh 1.9 billion and lowered its weighted average interest rate from 17% to 11.1%, improving its gearing ratio to 16%. The I-REIT has paid KSh 828 million in dividends since 2021, with a 2024 payout of KSh 0.66 per unit.
Two options:
- Vuka Imara — 100% in the income REIT, built for capital protection and steady income. Conservative.
- Vuka Prime blends income properties with development projects, targeting 12%+ per year over a five-year holding period. More growth, slightly more risk. Note that 12% is a target, not a guarantee.
Tax edge: Capital gains on REIT units are completely tax-free, and dividends face only a 5% withholding tax — versus the 15% on your MMF and fixed-income returns.
Liquidity:Â Unlike a physical plot, you can buy and sell units on the platform, potentially exiting in around two weeks.
The honest risks:
- Concentration — this is essentially one asset class (student housing) under one manager (Acorn). Don’t treat it as your entire real estate exposure forever.
- Occupancy risk — across the development portfolio, average occupancy was 82% in mid-2025 (mature properties run 91–95%). Vacancies or rent defaults directly affect distributions.
- It’s a long game — the dividend structure rewards investors who hold through the full financial year. This is a 3–5 year commitment minimum, and unit prices can fall as well as rise.
Who is this for? Anyone who’s always wanted real estate exposure but couldn’t stomach a deposit on a physical property, doesn’t want tenants and maintenance, and wants the liquidity that bricks-and-mortar can’t offer.
 Start investing with Vuka (KSh 5,000 minimum) (tap here to start).
How to Choose the Right Fund for You
One question cuts through all of this:Â when do you need this money?
- Under 1 year → Money Market Fund. Liquidity first.
- 1–3 years → Fixed Income Fund. More return, still conservative.
- 3–5 years → Balanced Fund, or a REIT like Vuka for real estate exposure.
- 5+ years → Equity Fund. Long-term wealth building.
- Medium-to-long term, higher risk appetite → Special Fund, for investors who’ve done the homework.
Most smart investors hold two or three of these at once: an emergency fund in an MMF, medium-term goals in fixed income, balanced, or a REIT, and long-term wealth in equity or special funds. That’s not complexity — that’s strategy.
4 Things to Check Before You Invest
- Is it CMA-licensed? Check cma.or.ke. Every fund and platform here is regulated. If something isn’t on that list, walk away.
- Net returns, not gross. Every fund advertises gross. What matters is the net return after management fees, trustee fees, administrative expenses, and the withholding tax. Always ask for the net figure.
- Withdrawal terms. How long does it take to access your money? Any exit fees or lock-in periods? Know this before you need it.
- Who holds your money? Your assets must be held by a licensed custodian bank, separate from the fund manager.
Final Thoughts
Five fund types, plus a bonus real estate option through Vuka, offer six ways to put your money to work with professionals in Kenya. Real fund names, real May 2026 returns, and a clear framework for choosing.
If you’re just starting, the funds worth exploring first are Etica MMF (conservative, Sharia-compliant), Zimele Fixed Income (medium-term goals), MansaX (higher-return territory), and Vuka (real estate without the headaches).
You don’t need to be rich to start; you need to be consistent, informed, and patient. The expertise already exists. You just have to know how to access it.
Which fund type are you most interested in? Let us know in the comments on the YouTube video.
Frequently Asked Questions
1. What is the minimum amount to invest in a unit trust in Kenya?
It varies by fund. Some money market funds, such as Etica, start from as little as KSh 100. Others require KSh 1,000–5,000. The Vuka REIT platform starts at KSh 5,000.
2. Which money market fund has the highest returns in Kenya in 2026?
As of May 2026, Cytonn MMF led with 11.43% gross (9.72% net), followed by Nabo Africa MMF and Etica Capital MMF. The market average was 8.99% gross. Returns change monthly, so always check the latest figures and verify net returns.
3. Are unit trusts safe in Kenya?
Unit trusts in Kenya are regulated by the Capital Markets Authority (CMA), and your assets are held by an independent custodian bank, separate from the fund manager. This structure protects your money even if the fund manager fails. However, returns are not guaranteed and vary by fund type and market conditions.
4. What is the difference between a money market fund and a fixed income fund?
A money market fund invests in short-term instruments (Treasury bills, deposits) and offers high liquidity with lower risk. A fixed-income fund invests in longer-dated bonds, offers higher potential returns, and can benefit when interest rates fall — but suits a slightly longer 1–3-year horizon.
5. Do I pay tax on unit trust returns in Kenya?
Yes. Most unit trust returns are subject to a 15% withholding tax, which is why it’s important to compare net returns rather than gross. REIT dividends are taxed at a lower 5%, and REIT capital gains are tax-free.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future returns. All returns are sourced from publicly available reports (Vasili Africa May 2026 Wrap-Up, Money254, CMA, Acorn) as of the dates shown and may have changed. Some links are affiliate links. Always do your own research and verify CMA licensing at cma.or.ke before investing.