Kenyan investors are accelerating a rotation out of money market funds and into special investment schemes, driven by declining yields in traditional cash instruments.
The shift marks a significant change in asset allocation preferences within the country's collective investment sector.
This surge comes as money market funds, which commanded over 90% of the market in 2021, have seen their dominance erode steadily over the past few years.
Data indicates that special funds reached a record 23.9% share of collective-investment assets in March 2026.
This surge comes as money market funds, which commanded over 90% of the market in 2021, have seen their dominance erode steadily over the past few years.
The reallocation reflects a search for higher returns as the yield environment for short-term cash instruments becomes less attractive.
The trend mirrors broader patterns seen in other emerging markets, where investors are increasingly diversifying away from broad aggregate bond benchmarks and traditional money market vehicles.