Special Funds are one of the fastest-growing corners of Kenya’s investment landscape — and one manager dominates them. Here is what these funds are, why they matter, and what every investor should know before putting money in.
What is a Special Fund?
A Special Fund is a type of Collective Investment Scheme, a pool of money drawn from multiple investors who share a common goal. Most Kenyans are familiar with money market funds or unit trusts. Special Funds occupy different ground. They target a defined group of investors and channel their capital into non-traditional, higher-yield securities: think commodities, derivatives, and private real estate deals that individuals cannot easily access on their own.
The mandate is to maximise income, protect capital, and grow it over time. These funds suit investors who want returns that outpace inflation and fixed deposits, and who accept that chasing higher yields means carrying more risk.
Three parties keep every fund honest
Kenya’s Special Funds operate under the Capital Markets Collective Investment Schemes Regulations 2001, with the Capital Markets Authority (CMA) as the sector regulator. Every licensed fund must appoint three separate parties, each with a distinct accountability role.
FUND MANAGER
Administers & invests
Makes all investment decisions, files monthly reports with the CMA, and manages risk on investors’ behalf.
TRUSTEE
Independent oversight
Monitors compliance with regulations and protects investor interests operating independently of the fund manager at all times.
CUSTODIAN (BANK)
Holds the assets
A CMA-approved bank that safeguards the fund’s cash, securities, and other assets in a segregated custody account.
The three-party structure matters because no single entity controls both the money and the oversight. The trustee can act against the fund manager if investor interests are at risk and the CMA’s monthly reporting requirement means regulators see the fund’s positions before most investors do.
Four reasons investors choose Special Funds
Regulatory and trustee oversight
Monthly CMA filings and an independent trustee create a dual layer of accountability. Investor capital sits inside an audited, regulated structure not a private arrangement.
Professional fund management
Investment decisions rest with experienced managers who research markets and run risk models. Investors do not need financial expertise to participate that is the manager’s job.
Higher return potential
Concentrated positions in high-yield sectors — real estate, commodities, structured credit — can deliver returns that traditional savings vehicles simply cannot match.
Portfolio diversification
Access to securities most individuals cannot reach independently. Spreading capital across asset classes reduces single-point exposure while targeting higher overall yields.
The risks
Higher returns come with higher risk. Before committing capital, every investor should understand the four principal risk categories that Special Funds carry.
Competent fund management mitigates these risks through diversification, stress-testing, and disciplined position limits but cannot eliminate them. Read the fund factsheet carefully. It will tell you where the money actually goes.
Where Kenya’s Special Funds market stands today
Kenya’s Special Funds sector closed December 2025 with Ksh 162.4 billion in assets under management — a 21.5% share of the total Collective Investment Scheme market across 37 active funds. The sector’s growth is real. So is its concentration.
| Fund | AUM (Ksh) | Share | |
|---|---|---|---|
| Mansa-X Special Fund KES | 107,350,244,682 | 66.1% | |
| Mansa-X Special Fund USD | 15,155,406,407 | 9.3% | |
| Oak Multi Asset Special KES Fund | 9,171,292,486 | 5.6% | |
| Madison Wealth Fund | 6,988,255,569 | 4.3% | |
| Britam Special Fixed Income Fund | 6,233,585,126 | 3.8% | |
| Old Mutual Special Fixed Income | 3,308,797,149 | 2.0% | |
| NCBA Managed Fund | 2,651,057,508 | 1.6% | |
| Mansa-X Shariah Special Fund KES | 2,329,990,844 | 1.4% | |
| NCBA Income Plus | 1,534,543,136 | 0.9% | |
| Arvocap Multi-Asset Strategy Special Fund | 1,078,043,368 | 0.7% | |
| 28 additional funds | 6,617,653,921 | 4.3% | |
| Total Special Funds | 162,418,870,196 | 100% |
Source: Capital Markets Authority Kenya. December 2025. Highlighted rows = Mansa-X funds.
Mansa-X runs two Special Funds — one in Kenyan shillings, one in US dollars — that together control 75.4% of the entire category. The shilling fund alone, at Ksh 107.4 billion, represents 66.1% of total AUM. No other fund comes close. The next largest, Oak Multi Asset Special KES, manages Ksh 9.2 billion — less than a tenth of Mansa-X’s KES position.
A credible secondary tier exists. Oak Multi Asset Special KES (5.6%), Madison Wealth Fund (4.3%), and Britam Special Fixed Income Fund (3.8%) each hold meaningful positions.
NCBA operates three separate funds — Managed Fund, Income Plus, and Dividend Plus — that together represent roughly 2.8% of AUM. At least five Sharia-compliant funds now operate in the space, including Mansa-X Shariah Special Fund KES (1.4%) and offerings from Arvocap, Kuza, GCIB, and Etica, signalling deliberate product diversification for Islamic finance investors.
Who should consider a Special Fund?
Special Funds suit investors with a moderate to high risk appetite who seek returns above what money market funds and fixed deposits deliver. They are not short-term instruments. Because some underlying assets are illiquid, investors should only commit capital they can leave untouched for the fund’s stated investment horizon and should treat any promise of extraordinary returns with scepticism, not excitement.
WHAT THIS MEANS FOR YOU
Kenya’s Special Funds market offers genuine opportunity but it demands informed participation. Start with the fund factsheet: check what assets the fund actually holds, how long it has been running, and what fees it charges. Confirm the fund manager carries a current CMA licence.
Then ask the question the market data raises directly: in a sector where one manager controls three-quarters of the assets, do you want to follow the crowd or look harder at the secondary names? The 37 funds in this market do not all carry the same risk, the same liquidity profile, or the same return potential. The differences matter more than the category name.
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