In a powerful display of shifting financial habits, Kenyans injected an additional KSh 83.2 billion into collective investment schemes during the third quarter of 2025.

This surge, detailed in the latest quarterly report by the Capital Markets Authority (CMA), underscores a growing appetite for higher returns as savers seek alternatives to traditional bank accounts. The massive inflow pushed the total assets under management to a record KSh 679.6 billion, a 14% jump from the KSh 596.3 billion recorded in the previous quarter.

Collective Investment Schemes (CIS), commonly known as money market funds or unit trusts, pool money from multiple investors to invest in a diversified portfolio of assets like government securities and high-rated corporate debt. Their popularity has soared as they offer higher interest rates than typical savings accounts, which often fail to keep up with inflation.

A Search for Better Returns

The move is largely driven by a desire for capital preservation and yields that can outpace the rising cost of living. While traditional bank savings accounts in Kenya offer interest rates that can be as low as 2-4%, many money market funds have been providing annual returns ranging from 9% to over 14% in 2025. This makes them an attractive vehicle for everything from building an emergency fund to parking cash for short-term goals.

The CMA, which regulates the sector, noted that the growth is also attributable to intensified marketing efforts by fund managers and the registration of new schemes. The regulator plays a crucial role in protecting investors and ensuring the stability of these funds.

Key figures from the Q3 2025 report include:

• Total Assets Under Management: KSh 679.6 billion.
• Quarterly Inflow: An additional KSh 83.2 billion invested.
• Three-Month Growth Rate: 14%.
• Dominant Fund Type: Money market funds remain the most popular choice for investors.

This trend signifies a maturing investment culture in Kenya, where individuals are increasingly looking beyond conventional savings to actively grow their wealth. With low minimum investment amounts, some as little as KSh 1,000, these funds have become accessible to a wider segment of the population.

As more Kenyans entrust their savings to these investment vehicles, the focus sharpens on the fund managers' performance and the CMA's continued oversight to safeguard this burgeoning pool of national savings.