NCBA Investment Bank on Tuesday, November 25, 2025, officially launched its Offshore Investment Solutions, a new suite of products designed to give Kenyan investors direct access to global markets and foreign currency-denominated assets. The move is a direct response to what the bank describes as a growing appetite among local clients for internationally diversified portfolios to preserve wealth and hedge against the volatility of the Kenyan Shilling.

The launch, which took place at the 5th Annual Abojani Economic Forum in Nairobi, positions NCBA among a growing number of Kenyan financial institutions catering to increased demand for offshore investments. Muathi Kilonzo, the Managing Director of NCBA Investment Bank, stated that the offering leverages the bank's global network and expertise. “We're utilising our global presence, market knowledge, and expertise to create a solid offshore investment setup,” Kilonzo said on November 22. He emphasized the goal is to help clients “invest their capital safely while aiming for reliable returns” within a compliant framework.

Market Drivers: Hedging Against Local Risk

The push towards global assets is not happening in a vacuum. It reflects a broader trend within Kenya's investment landscape where fund managers are increasingly offering dollar-denominated products. This shift is driven by investor concerns over shilling depreciation, domestic inflation, and market uncertainties. Although the Kenyan Shilling has shown stability against the US dollar for much of 2025, trading around KSh 129.6 on Tuesday, November 25, the memory of its historic high of 163 in January 2024 remains a powerful motivator for diversification. Financial analysts note that this trend signals a maturation of Kenya's investment market, moving beyond a purely domestic focus.

This initiative comes as Kenya solidifies its position as a key African wealth hub. The Africa Wealth Report 2025 identified Kenya as home to 6,800 high-net-worth individuals, a key demographic for such investment products. NCBA is targeting these individuals, alongside its diaspora and corporate clients who earn in foreign currencies or are engaged in international trade.

Product Tiers and Accessibility

NCBA’s offshore solution is structured in three tiers to cater to a range of investors, from retail clients to large institutions. The entry point is through Pooled Investment Funds, which include the NCBA Global Equity Special Fund and the NCBA Global Fixed Income Special Fund. These US dollar-denominated funds require a minimum investment of $1,000 (approximately KSh 129,600), making global investing more accessible to the mass-affluent market. These funds primarily invest in Exchange-Traded Funds (ETFs) with exposure to markets in the United States, Europe, and Asia.

For more experienced, self-directed investors, the bank offers Execution Mandates and Custody Services, providing a platform to trade a wide array of global instruments while NCBA handles the administration and safekeeping of assets. The third tier, Bespoke Segregated Portfolios, is a fully customized service for ultra-high-net-worth clients, family offices, and institutions seeking direct access to global equities, bonds, and other alternative assets.

While the initial announcement title mentioned access to Chinese investments, the detailed product descriptions focus primarily on ETFs with exposure to the US, Europe, and broader Asian and emerging markets. NCBA has previously facilitated business trips to China for its SME customers, but specific access to Chinese capital markets through this new offshore solution is a DETAIL REQUIRING FURTHER CLARIFICATION.

Regulatory and Analytical Perspective

The expansion of offshore investment products operates within the regulatory framework of the Capital Markets Authority (CMA), which oversees collective investment schemes and foreign investor regulations in Kenya. NCBA has stressed its commitment to compliance, ensuring its solutions adhere to global standards such as Know Your Customer (KYC), Anti-Money Laundering (AML), and the Foreign Account Tax Compliance Act (FATCA).

From an analytical standpoint, offshore investing offers clear advantages, including asset protection, currency diversification, and access to a much larger pool of investment opportunities. For pension funds and long-term savers, diversifying a portion of their portfolio away from the local economy can mitigate risks and potentially lead to higher real returns. However, it is not without risks. Investors face potential challenges such as higher costs, currency fluctuations upon repatriation of funds, and the complexity of navigating international regulations. The move by institutions like NCBA to offer structured, accessible products aims to mitigate some of these hurdles for Kenyan investors, providing professional management and regulatory oversight.