Kenyan investors are increasingly seeking refuge in low-risk investment vehicles, pouring billions into funds that prioritize stability over aggressive growth. This cautious wave swelled the total assets in Collective Investment Schemes (CIS) by 14% to KES 679.6 billion between June and September 2025, according to the latest data from the Capital Markets Authority (CMA).

The surge underscores a deepening anxiety among savers navigating a landscape of high inflation and interest rates. The core of this story is not just about numbers, but about a fundamental shift in public sentiment: Kenyans are choosing to protect their capital, signaling a widespread desire for financial security over speculative gains in a tough economic climate.

Investors Flock to Safe Havens

Money Market Funds (MMFs) continue to be the anchor for most investors, cementing their position as the largest segment. These funds, which invest in short-term, low-risk debt like Treasury bills and fixed deposits, expanded to KES 400 billion, now accounting for a staggering 58.9% of all assets under management. The CMA report attributes the enduring appeal of MMFs to their stability in a challenging macroeconomic environment.

In contrast, funds focused on the stock market have seen minimal interest. Equity and Balanced Funds together represent less than 1% of the total market, a clear indicator of the subdued risk appetite among ordinary Kenyans.

The Rise of Special Funds

A significant development this quarter was the remarkable growth of Special Funds, which have now overtaken traditional Fixed Income Funds to claim the second-largest spot. Assets in these funds grew by 22% to reach KES 137.8 billion. Unlike traditional funds, Special Funds offer managers the flexibility to invest across a diverse range of assets, including bonds, equities, and even international markets, allowing them to adapt to changing conditions.

This surge indicates a growing sophistication among some investors, who seek diversification and potentially higher returns but within a regulated structure. Key statistics for the quarter highlight this clear trend:

• Total Assets Under Management: KES 679.6 billion
• Money Market Funds: KES 400 billion (58.9%)
• Special Funds: KES 137.8 billion (20.3%)
• Fixed Income Funds: KES 136.7 billion (20.1%)

As the CIS market continues its rapid expansion, which has seen total assets grow over 1,100% since 2018, analysts note that the rise of Special Funds points to a new chapter in Kenya's investment story. It reflects a demand for more dynamic products that can navigate economic uncertainty while still offering growth potential.