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How to invest in Kenya’s unit trust funds: A beginner’s guide
13th July, 2026 08:05 PM
Many Kenyans want to grow their savings but feel unsure about where to start. Putting money into the stock market or buying government bonds directly can feel complicated and expensive.
This is where unit trust funds come in. A unit trust pools money from thousands of everyday savers and hands it over to licensed professionals. These fund managers split the cash across corporate shares, government treasury bills, and fixed bank deposits to spread risk.
By December 31, 2024, reports from the Capital Markets Authority showed that total assets managed by these funds grew to Ksh389.2 billion. This shows that more Kenyans are embracing them, though equity and balanced options remain underutilised as many savers stick strictly to basic money market options.
Choosing your fund type and managing fees
When opening a fund, the choice depends heavily on financial goals. Money market funds focus on safe, short-term bank deposits. Equity funds invest directly in company shares on the Nairobi Securities Exchange, while balanced funds mix a bit of everything.
Major licensed players like CIC Asset Management, ICEA Lion, Britam, and Sanlam dominate this market. They normally require a minimum initial investment of just Ksh1,000.
To run these funds, managers charge an annual fee that sits between 1 per cent and 2.5 per cent of the total investment. This amount is subtracted directly from the daily earnings. Savers often worry about getting their cash out during emergencies, but research backs the stability of these setups.
A peer-reviewed study on Kenyan investment schemes published in the International Journal of Finance & Banking Studies noted that “equity investments had a positive and significant effect on liquidity”.
Setting up an account and tracking growth
Starting an account takes a few minutes because the process has gone completely digital. Most fund managers have mobile applications or USSD codes.
A mobile phone, a national identity card, a KRA PIN, and a mobile money account are all that is required to start. Once verified, depositing the initial Ksh1,000 activates the account, and top-ups can follow later in smaller amounts.
Tracking progress is about looking at regular, long-term trends instead of panicking over daily shifts. Managers publish their daily interest yields and unit prices on their websites and in national newspapers.
For equity or balanced funds, evaluating performance over three to five years against inflation shows true wealth growth.
