Absa Kenya targets top spot in fund management

One of the most notable developments has been the rapid growth of the Absa Money Market Fund, which has risen to become the third-largest fund in the country within four years of launch.

Industry data places it behind the Sanlam Money Market Fund at Ksh.92.7 billion and CIC Money Market Fund at Ksh.87.8 billion. Absa currently manages over Ksh.27 billion in assets, overtaking more than 40 rival funds in that period.

Speaking on the growth trajectory, Elizabeth Irungu, CEO of Absa Asset Management Limited, said physical accessibility has remained a key factor in customer adoption of collective investment products.

“Customers can walk into a branch and get direct advice, and that still matters in markets where trust is a deciding investment factor,” she said.

She added that investors in the fund can leverage their portfolios as loan collateral, with processing timelines averaging 72 hours, while insurance can also be bundled into investment positions.

The wider market has continued its upward momentum. Money Market Funds remain the largest investment class in Kenya’s Collective Investment Schemes, holding KES 319.7 billion, or 64.4% of the industry total valued at KES 496.2 billion.

Despite a gradual easing of returns through 2025, linked to declining interest rates and relative macroeconomic stability, the segment has remained resilient, supported by investor diversification into treasury bills, corporate debt, government bonds and multi-currency funds.

Analysts attribute the sector’s sustained expansion to rising financial awareness, increased regulator-led literacy initiatives, and targeted digital marketing, which has heavily influenced younger savers seeking structured return-bearing products.

Retail participation has also increased. According to the Capital Markets Authority, Collective Investment Schemes grew AUM by 28% in Q1 2025, pointing to increased investor confidence and broader market participation.

Market players now expect competition to increasingly shift toward innovation and customer engagement as returns stabilise.

With more than 40 licensed funds operating in the segment, differentiation is expected to rely less on interest rate positioning and more on brand credibility, digital access, product flexibility and customer experience.

While lenders historically ceded the savings and asset-pooling space to insurers and standalone fund managers, the recent activity signals a structural shift in how traditional financial institutions view wealth creation — particularly for retail investors.