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Unit trust assets tipped to cross Sh1trn on multiple investor accounts
Unit trust investments in Kenya are set to hit Sh1 trillion by mid-2026, driven by a surge in individual investors opening multiple accounts across funds.
Investments in collective schemes or unit trusts are expected to close the Sh1 trillion mark in the first half of 2026, boosted by multiple accounts by individual investors.
The Fund Managers Association (FMA) which pools together professional managers says individuals have been opening multiple accounts, primarily in the search of comparatively higher returns from different funds.
Unit trusts assets under management touched Sh679.6 billion at the end of September 2025, rising from Sh596.3 billion in June 2025 as per market data.
“The population is so interested in unit trusts that we are increasingly seeing people opening multiple money market funds (MMFs) and multiple special funds,” said FMA Chairman and Co-op Trust Investments Services managing director Nicholas Ithondeka.
“The idea of having multiple funds is mostly in the returns. If an investor is able yield one of two percent more from another fund, then they see the scope for multiple accounts. My forecast is that assets will hit Sh1 trillion by the time we are halfway into the year and probably surpass that.”
Returns on MMFs hit highs of 18 percent in early 2024 but have declined to below 10 percent as interest rates in the economy fell.
Unit trusts are investment schemes that pool money from multiple investors and are managed by professionals who invest in assets like stocks, bonds and commercial bank fixed deposits.
The assets under unit trusts have grown steadily over the years from Sh56.6 billion in March 2018, increasing by 11 times to Sh679.8 billion in September 2025.
Money market funds or MMFs have been the most popular class of unit trusts, based on their relative lower risk and liquidity, and invest mostly in commercial bank fixed deposits and Treasury bills.
MMFs represented 58.9 percent of all unit trust assets as of September 2025 or Sh400 billion.
Special funds which represent flexible investments in non-traditional assets like offshore stocks, private equity and real estate were the second largest class of unit trusts with a market share of 20.3 percent or Sh137.8 billion.
Other dominant funds are fixed income funds which invest primary in Treasury bonds (20.1 percent market share or Sh105.6 billion in assets), equity funds investing primarily in listed stocks (0.5 percent or Sh3.3 billion) and balanced fund which endeavour for an equal mix between stocks and bonds (0.2 percent market share or Sh1.69 billion assets).
MMFs are expected to retain their allure despite competition from special funds as the class is viewed as low risk.
Unit trusts are also expected to grow as younger investors avoid keeping funds in low yielding bank savings accounts.
“The interest in unit trusts will continue because the younger generation doesn’t believe in putting money in a bank account and just store up,” added Mr. Ithondeka.
“We still expect a bias on money market funds because the risk levels are low. Specialised funds have very high risks but people have still been willing to try them out in the last two years.”
The Capital Markets Authority (CMA) had licensed 41-unit trusts schemes as of September 2025 with Sanlam Unit Trust Scheme leading the market with a share of 19.2 percent or Sh130.5 percent in assets.
Fourteen schemes had an AUM above Sh10 billion, commanding a market share of 90.1 percent. Other top unit trust schemes included CIC, NCBA, Britam, Etica, Ziidi and ICEA.
