New Wave Of Special Funds Shakes Up Kenyan Finance

Rising demand for investment products that provide domestic retail investors in Kenya with exposure to global financial markets is driving new growth for the country's banks. Standard Investment Bank SIB, which offers the Mansa X Special Fund to cater to this demand, has emerged as one of the largest players in this fast-growing corner of the market.

Launched in January 2019, Mansa X was the first fund to be licensed by Kenya's market regulator under the 'special fund" category. It enables investors to diversify their portfolios beyond local markets by investing in financial instruments in the world's major global stock exchanges in New York, London, Frankfurt, Hong Kong and other financial centres.

The fund has grown rapidly since its inception, with its assets under management AUM surpassing many of the country's large traditional funds that focus exclusively on domestic financial markets. According to data published by Kenya's capital markets regulator, Mansa X's AUM was Sh34.23bn 264m in September 2024, representing 10.8 of total assets managed by collective investment schemes in the country. This makes it Kenya's third largest managed fund - after Sanlam Unit Trust, which had assets worth Sh46.8bn 361m, accounting for 14.8 market share, and CIC Unit Trust, which managed assets valued at Sh70.32bn 540m, translating to a 22.3 market share.

Nahashon Mungai, executive director of global markets at SIB, is the portfolio manager who oversees Mansa X. He tells African Business that the fund has managed to capture strong investor inflows in recent quarters, sustaining the rapid pace of growth in AUM that it has achieved in recent years.

"Right now we're managing about Sh54bn 416m," he says, noting that the fund's ability to consistently outperform domestic markets has been a major draw for investors. "Returns have been good and we've managed an average of 17.5 net of fees in the past five years."