Kenya's CMA Approves New US Dollar, Kenyan Shilling Money Market Funds and Securities Dealer
- Sanlam Investments East Africa received approval to launch the Sanlam Special GBP Fixed Income Fund, denominated in British Pounds, under its existing structure
- ALA Capital Limited was granted approval to register six new sub-funds, including both US dollar and Kenyan shilling-denominated money market funds
- VCG Asset Management Limited will establish three new offshore funds, while Fintrust Securities Limited has been licensed as an Authorised Securities Dealer
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Capital Markets Authority (CMA) has approved a raft of new collective investment schemes, sub-funds, and licensed new market intermediaries, including securities dealers and corporate trustees.
Source: UGC
In a move aimed at enhancing product diversity and increasing access to foreign and local currency-denominated investment options, the regulator permitted Sanlam Investments East Africa to launch a new sub-fund under its existing structure.
Following the approval, Sanlam will be operating the Sanlam Special GBP Fixed Income Fund, which will be denominated in Great Britain Pounds (GBP).
CMA authorises new money market funds
Separately, ALA Capital Limited received CMA's approval to register the ALA Capital Collective Investment Scheme (ALA CIS).
The ALA CIS will comprise six sub-funds: ALA Balanced Fund, ALA Multi-Asset Special Fund, ALA Equity Fund, ALA Fixed Income (KES) Fund, ALA Money Market Fund (USD) and the ALA Money Market Fund (KSh).
This marks the entry of both Kenyan shilling and US dollar-denominated money market funds under the ALA CIS umbrella.
Meanwhile, VCG Asset Management Limited has been given the green light to establish three additional funds under the VCG Offshore Opportunities Special Funds umbrella.
These include the VCG Offshore Money Market Fund (KSh), VCG Offshore Money Market Special Fund (USD), and the VCG Offshore Fixed Income Special Fund (KSh).
CMA authorises new securities dealer
CMA has also licensed Fintrust Securities Limited as an Authorised Securities Dealer (ASD).
Fintrust is now authorised to buy and sell fixed-income securities for clients, quote bid and offer prices, and offer related advisory services.
Furthermore, Stanbic Bank Kenya Limited has been licensed as a corporate trustee under Regulation 31 of the Capital Markets (Collective Investment Schemes) Regulations, 2023, and will be able to oversee collective investment schemes.
Welcoming the developments, CMA Chief Executive Officer FCPA Wycliffe Shamiah noted the approvals were driven by strong investor appetite for diversified and innovative products.
He said collective investment schemes have now surpassed KSh 500 billion in total assets under management.
“These approvals reflect growing investor confidence and increased appetite for diversified investment options, including foreign currency-denominated and offshore funds,” Shamiah stated.
Source: Twitter
The authority reiterated its commitment to strengthening market infrastructure, encouraging regulatory compliance, and supporting financial products that stimulate capital formation and economic growth.
How did money market funds perform?
In other news, Kenya's Collective Investment Schemes (CIS) grew by 28% in the first quarter of 2025.
The total assets under management grew to KSh 496.2 billion as of March 31, up from KSh 389.2 billion in December 2024.
Money Market Funds remained the most dominant investment option, controlling KSh 319.7 billion or 64.4% of the total, thanks to their low-risk nature, accessibility, better returns compared to bank savings, and quick liquidity.
CMA attributed this growth to increased investor education, new fund registrations, aggressive digital marketing, and rising interest in foreign currency-denominated funds. CIC, Sanlam, ICEA Lion, ABSA, and Co-op led the market, collectively managing a significant share of the MMF assets.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
