As Kenya’s interest-rate cycle cools and Money Market Fund (MMF) yields retreat from their 2023–2024 highs, a growing number of savers are looking beyond short-term cash products.
Special Funds once considered niche or “sophisticated-only” vehicles are now firmly in the mainstream of Kenya’s collective investment schemes market.
By the end of Q3 2025, Special Funds managed KSh 137.8 billion, accounting for 20.3% of total unit trust assets under management, according to Capital Markets Authority (CMA) data.
That makes them the second-largest CIS category after MMFs, a remarkable shift in a market that was over 90% money-market dominated just four years ago.
This growth reflects a structural change rather than a passing trend. Investors are responding to lower Treasury bill yields, currency volatility, and the desire for global diversification, needs that MMFs were never designed to meet.
What Sets Special Funds Apart
Special Funds are CMA-regulated collective investment schemes with far greater investment flexibility than traditional MMFs or fixed-income funds.
While MMFs are restricted to low-risk, short-term instruments such as Treasury bills and bank deposits, Special Funds can invest across a much wider universe.
Depending on the mandate, this may include offshore equities and bonds, commodities, currencies, structured products, derivatives, private credit, or real estate-linked assets.
Some funds use long–short strategies or limited leverage to generate returns in both rising and falling markets.
The trade-off is clear: higher return potential comes with higher volatility and lower liquidity. These funds are designed for investors with medium- to long-term horizons, not for parking emergency cash.
Leading Special Funds in Kenya (Late 2025)
A handful of funds have emerged as market leaders based on scale, consistency, and investor adoption rather than short-term performance alone.
Mansa-X Special Fund (Standard Investment Bank)
Launched in 2019, Mansa-X effectively created Kenya’s Special Fund category. It remains the largest by far, managing over KSh 100 billion across KES and USD tranches.
Its strategy is multi-asset and global, using long–short positioning to manage volatility. In Q3 2025, the KES fund returned 5.09% net, bringing its nine-month performance to 16.03% net, equivalent to low-20s annualised. Minimum investment is KSh 250,000 (or USD 2,500).
OAK Special Fund (Faida Investment Bank)
OAK has become one of the most visible challengers, offering a leveraged multi-asset allocation strategy spanning local and offshore markets.
It appeals to investors seeking higher growth and is frequently featured in performance rankings. Minimum investment typically starts at KSh 500,000, positioning it slightly higher on the risk and entry scale.
Kuza Momentum Special Fund
Kuza’s fund targets momentum-driven opportunities and has attracted attention for its strong historical numbers, including standout performance in 2024.
With minimums around KSh 100,000, it is among the more accessible Special Funds, though its strategy can be more volatile than diversified multi-asset peers.
Old Mutual Special Fixed Income Fund
This fund sits closer to the conservative end of the spectrum, blending fixed-income instruments with a more flexible mandate than traditional bond funds.
It appeals to investors seeking higher yields than MMFs without full exposure to equity or commodity volatility.
CIC Global Balanced Special Fund
One of the newer entrants, CIC’s fund focuses on offshore diversification and aims to lower the barrier for Kenyan investors seeking global exposure within a regulated structure.
Several other funds, including Dry Associates’ Special Fund and VCG’s offshore-focused offerings, round out a market that is becoming more competitive and more diverse by the quarter.
READ ALSO:What Is a Special Fund and How Do You Invest? A Kenyan Guide Beyond Stocks and SACCOs
How to Choose the Right Special Fund
Choosing a Special Fund is less about chasing the highest recent return and more about alignment with your objectives and risk tolerance.
Start with risk appetite and time horizon. If capital preservation and daily liquidity matter most, MMFs remain the better fit. Special Funds are appropriate if you can invest for at least two to three years and tolerate interim loss periods.
Next, verify regulatory status and manager credibility. The fund must be CMA-approved, and the manager should have a clear track record, transparent reporting, and consistent communication.
Performance matters, but context matters more. Look at net returns over multiple periods, not just a single strong quarter. Understand how the fund performs in volatile markets, not only during rallies.
Fees and minimums also shape outcomes. Special Funds often charge higher management fees and may include performance fees. These are not inherently bad, but they must be justified by strategy and execution.
Liquidity terms are critical. Some funds allow monthly redemptions, others quarterly, and some impose notice periods or gates during stressed markets. Always understand how and when you can exit.
Finally, examine the portfolio and currency exposure. If you are worried about shilling weakness, a USD-denominated or offshore-heavy fund may make sense. If you want income, a fixed-income-leaning mandate may be more suitable.
For investors willing to do the homework, they represent one of the most meaningful evolutions in Kenya’s retail investment market in over a decade.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results. Always consult a licensed financial adviser before investing.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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