Why Kenyans Are Shifting from Money Market Funds to Fixed Income and Special Funds

The report shows that MMFs’ share of Assets Under Management (AUM) has dropped gradually from highs of over 90 percent in the previous years to about 56 percent by December 2025.

This marks a noticeable decline, which therefore reflects changing investor preferences in the financial landscape.

CMA reveals that Kenyans have increased usage of Fixed Income Funds (FIFs) and Special Funds (SPs), which have shown consistent growth over the same period.

Fixed Income Funds

Fixed income funds, for instance, have grown to command approximately 22 percent of AUM, while special funds now account for around 21 percent, indicating that investors are looking at options.

This shift could be the search for higher returns and product variety. While MMFs have traditionally been favored for their liquidity and low risk, their returns have become less competitive compared to the emerging alternatives offering better results and structured investment strategies.

Special funds, in particular, have gained popularity due to their investment approaches, including exposure to specific sectors, Shariah-compliant options, and multi-asset portfolios.

This flexibility is attracting both retail and institutional investors who are seeking to maximize returns while spreading risk.

Also Read: ODM Picks Babu Owino to Replace Sifuna as Secretary-General

CMA notes a maturing Investment Culture

The decline in MMFs also reflects a maturing investment culture among Kenyans, with more individuals becoming financially literate and willing to explore diverse financial products beyond traditional low-risk options, CMA says.

CMA says that even despite the drop, MMFs remain a key player in the market, still holding the largest share of assets.

However, the narrowing gap suggests that their dominance is no longer guaranteed.

Also Read: Trump Denies US Involvement in Qatar LNG Strike, Warns Iran Against Further Attacks

CMA ranks MMFs

CMA reports show that Sanlam Money Market Fund sits at the top with about Ksh 114.16 billion, accounting for roughly 27.1 percent of the market share.

It is followed by CIC Money Market Fund, which manages close to Ksh 78.93 billion, translating to 18.7 percent.

Other notable players include Absa Shilling Money Market Fund with around Ksh 26.18 billion, Old Mutual Money Market Fund at approximately Ksh 24.28 billion, and Co-operative Money Market Fund with about Ksh 21.61 billion in assets.

Follow our WhatsApp channel for instant news updates

CMA says that even despite the drop, MMFs remain a key player in the market, still holding the largest share of assets.
PHOTO/VOA Africa