Kenya’s Capital Markets Authority (CMA) has approved a fresh wave of collective investment schemes and sub-funds, a move that signals renewed momentum in the capital markets and rising demand for diversified, currency-hedged investment options.

In a bid to deepen market offerings and widen access, the regulator granted clearance to three fund managers Sanlam Investments East Africa, ALA Capital Limited, and VCG Asset Management to roll out a suite of new products targeting both local and offshore opportunities.

CMA Chief Executive Wyckliffe Shamiah said the approvals reflect growing investor confidence and a shift toward broader, more sophisticated investment vehicles, including foreign currency-denominated and global market-linked funds.

“We remain committed to facilitating the growth of innovative capital markets products that enhance investor choice and support economic development,” Shamiah stated.

Among the approved products is a new sub-fund by Sanlam Investments East Africa the Sanlam Special GBP Fixed Income Fund. The fund, to be denominated in British Pounds (GBP), will offer exposure to foreign-currency fixed income securities, providing a buffer against local currency volatility.

Sanlam’s strategy echoes a broader industry trend as fund managers respond to investor demand for products that hedge against domestic economic uncertainties amid shifting global monetary conditions.

ALA Capital Limited has also been cleared to register the ALA Capital Collective Investment Scheme (ALA CIS), comprising six sub-funds with strategies ranging from equities and balanced portfolios to multi-asset and money market approaches.

Notably, the scheme will include money market funds denominated in both Kenya shillings and US dollars an indication of growing interest in currency-linked cash management tools from both retail and institutional investors.

Meanwhile, VCG Asset Management a relatively new player in the market has secured regulatory approval to introduce three funds under its VCG Offshore Opportunities Special Funds portfolio. These include two money market funds (in KES and USD) and a fixed income fund.

The latest approvals come as Kenya’s collective investment scheme sector crosses the Ksh500 billion mark in total assets under management — a significant milestone that underscores the sector’s rapid expansion and deepening investor engagement.