For decades, Kenyan investors have relied on a familiar trio: SACCOs for steady dividends, Money Market Funds for safety and liquidity, and listed stocks on the Nairobi Securities Exchange for growth when the market cooperates.
But as interest rates soften and diversification becomes more urgent, a different vehicle has quietly moved into the mainstream: the Special Fund.
Once viewed as niche products for high-net-worth or institutional investors, Special Funds are now among the fastest-growing segments in Kenya’s collective investment schemes (CIS) market.
By September 2025, total CIS assets had climbed to KSh 679.6 billion, and Special Funds accounted for more than 20% of that pool, up sharply from just a few years ago.
The Capital Markets Authority (CMA) has leaned into the trend, approving eight new schemes in November 2025 alone and taking the total number of approved CIS to 57.
So what exactly is a Special Fund, and why are more Kenyans moving beyond stocks and SACCOs to consider them?
What Exactly Is a Special Fund?
A Special Fund is a CMA-regulated collective investment scheme that allows professional fund managers significantly more flexibility than traditional unit trusts.
Instead of being limited to Treasury bills or local bonds, Special Funds can invest across multiple asset classes and geographies, often using advanced strategies.
In practice, this means a Special Fund may hold offshore equities, global bonds, commodities, currencies, precious metals, or structured instruments.
Some employ long–short strategies, derivatives, or moderate leverage to generate returns in both rising and falling markets. Others focus on diversified global asset allocation rather than single-country exposure.
Unlike Money Market Funds, which are designed primarily to preserve capital, Special Funds are explicitly growth-oriented. They are built for investors willing to accept higher volatility in pursuit of stronger long-term returns.
Why Investors Are Looking Beyond Stocks and SACCOs
The appeal of Special Funds lies less in newness and more in necessity. Kenya’s investment environment has changed.
SACCOs remain valuable, but their returns are often tied to local lending cycles and can lag inflation during economic slowdowns.
NSE-listed stocks offer upside, but market volatility, thin liquidity, and concentration risk have made equity-only strategies uncomfortable for many retail investors.
Meanwhile, Money Market Fund yields, once comfortably in the mid-teens, have drifted lower as Treasury bill rates declined through 2025.
Special Funds sit between these options. They offer diversification beyond Kenya’s borders, professional risk management, and access to strategies that individual investors would struggle to execute on their own.
For many savers, they represent a step up rather than a leap into speculative investing.
How Special Funds Differ From Money Market Funds
The distinction is structural. Money Market Funds invest almost exclusively in short-term, low-risk instruments and offer daily liquidity. Special Funds trade liquidity and simplicity for flexibility and return potential.
Special Funds typically have higher minimum investments, sometimes ranging from KSh 100,000 to KSh 500,000 or more. Redemptions may be processed weekly, monthly, or quarterly rather than daily.
Fees are also higher and may include performance-based components. In exchange, investors gain exposure to global markets and strategies that are not tied to Kenyan interest rates alone.
Notable Special Funds in Kenya
1. Mansa-X Special Fund (Standard Investment Bank – SIB)
Launched in 2019, Mansa-X pioneered the Special Fund category in Kenya with a sophisticated multi-asset, long/short strategy focused on global markets.
It offers both KES and USD versions, providing currency diversification and resilience in volatile conditions. The fund has grown into one of the largest individual funds in Kenya, with strong AUM and consistent reporting.
- Minimum Investment: KES 250,000 (KES fund) or USD 2,500 (USD fund).
- How to Open/Invest:
- Visit sib.co.ke/mansa-x/ to download the application form and factsheet.
- Complete KYC requirements (ID, proof of address, etc.).
- Fund via M-Pesa (integrated for convenience), bank transfer/RTGS/cheque to designated I&M Bank accounts (detailed instructions on sib.co.ke/mansax-payments/ or specific KES/USD funding pages).
- Cash deposits are not allowed. Once funded, units are allocated promptly.
- Contact: info@sib.co.ke or visit SIB offices in Nairobi.
2. OAK Special Fund (Faida Investment Bank)
OAK employs a leveraged multi-asset allocation approach, combining local fixed income with offshore equities and other global opportunities.
Managed Managed by Faida Investment Bank (a veteran firm with over 30 years in Kenya), it has rapidly grown to over KES 10 billion in AUM within two years of launch. A USD version (Oak Multi-Asset Special USD Fund) was recently approved.
- Minimum Investment: Typically starts at KES 500,000+ (check current factsheet for updates).
- How to Open/Invest:
- Download the OAK Special Fund app (available for iOS/Android) for seamless onboarding and management.
- Alternatively, visit oak.africa to access forms, factsheets, and online registration.
- Submit KYC documents digitally or in person at Faida offices.
- Top-ups and withdrawals are handled via the app or bank transfers.
- Contact: Via website chat, info@oak.africa, or Faida Investment Bank branches.
3. Kuza Momentum Special Fund (Kuza Asset Management)
This fund uses a dynamic asset allocation (DAA) strategy driven by momentum and quality research, targeting long-term capital growth across equities, fixed income, and other assets.
It stood out as the top-performing CMA-licensed Special Fund in 2024 with 45.8% returns and has maintained strong momentum into 2025.
- Minimum Investment: KES 100,000 initial; KES 50,000 top-ups.
- How to Open/Invest:
- Go to kuza.africa/products/kuza-momentum-fund-kes/ for the factsheet and application.
- Fill out the online or downloadable form with KYC details.
- Deposit via bank transfer to Kuza’s designated accounts (instructions provided post-application).
- Digital onboarding is available; contact the team for guidance.
- Contact: Kuza offices at Kings Prism Tower, Nairobi, or via website enquiries.
4. Dry Associates Special High Yield Fund (Dry Associates Investment Bank)
Focused on high-yield fixed income and equities, this fund aims for wealth accumulation over the medium to long term with a balanced risk profile.
It was converted/approved as a Special Fund in recent CMA updates, offering attractive yields for investors seeking growth beyond MMFs.
- Minimum Investment: Varies; often accessible from KES 100,000+ (confirm via factsheet).
- How to Open/Invest:
- Visit dryassociates.com/fund-management/unit-trust/special-high-yield-fund/ for details and forms.
- Complete the application with KYC and submit via email or in person.
- Fund through bank transfers to Dry Associates accounts.
- Dry also offers related Money Market Funds for easier entry.
- Contact: +254 111 014 600 or the Nairobi office.
The Risks You Need to Understand
Special Funds are not substitutes for savings accounts or emergency funds. Their use of market exposure, leverage, or derivatives means capital values can fluctuate meaningfully in the short term. Losses are possible, particularly during periods of global market stress.
Liquidity is also more constrained than in MMFs, and investors must be comfortable locking up capital for defined periods.
Fees are higher, and strategies can be complex. This is why the CMA categorizes Special Funds as suitable for more sophisticated investors.
Reading the prospectus, understanding the strategy, and assessing your own risk tolerance are not optional steps; they are essential.
How to Invest in a Special Fund in Kenya
Investing in a Special Fund is straightforward, though more deliberate than opening an MMF.
Start by reviewing the CMA’s list of approved collective investment schemes to ensure the fund is licensed. Most fund managers publish fact sheets explaining strategy, fees, minimum investment, and redemption terms.
Once you select a fund, you’ll open an account directly with the investment bank or asset manager, completing standard KYC requirements such as identification, KRA PIN, and proof of address.
Funding is usually done via bank transfer, though some managers support mobile payments for onboarding. After investing, performance is typically reported monthly or quarterly, and redemptions are processed according to the fund’s stated timelines.
Many investors choose to start with a modest allocation alongside MMFs or SACCO savings rather than switching entirely.
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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