Kenya’s latest CMA licensing wave has opened a new phase in the country’s asset management industry, bringing in fresh fund managers, new unit trust schemes, additional sub-funds and more specialised market intermediaries at a time when investors are demanding wider, more regulated options for saving and investing.
The Capital Markets Authority has licensed ADAR Asset Management, Entrust Advisory and Everstrong Asset Management as fund managers, while also approving new umbrella unit trust schemes promoted by Cinemark Investment Bank and Karsis Asset Managers. The regulator has also cleared new products under existing managers, including Absa Asset Management, Dry Associates, Madison Investment Managers and Tradiam Investment Services. Public reports on the approvals indicate that the regulator is using the latest batch to deepen product variety, broaden formal market participation and strengthen confidence in Kenya’s regulated investment sector.
The approvals come as Kenya’s investment market shifts beyond plain-vanilla money market funds. Investors are increasingly being offered multi-currency products, fixed-income special funds, multi-asset strategies, private-debt vehicles and digitally distributed investment products. That creates more choice, but it also raises the bar for disclosure, suitability checks and investor education.
The licensing of Frictionless Enterprises, trading as Power®, is particularly notable because it links regulated fund distribution with payroll technology. The platform connects employer payroll systems and fund manager systems through APIs, allowing users to direct part of their earnings into money market funds run by CMA-regulated fund managers. The company’s Power IO app had earlier entered the CMA regulatory sandbox as a wage-linked investment solution, according to previous market reporting.
For Kenya’s capital markets, the signal is clear. The regulator is not only approving more funds. It is also shaping the infrastructure through which savings, payroll deductions, alternative investments, real estate-linked credit, Shariah-compliant property vehicles and commodity-linked brokerage services can operate under formal oversight.
CMA Licensing Wave Broadens Kenya’s Fund Market
The CMA licensing wave expands the formal asset management market in several directions at once. It adds new fund managers, registers new unit trust structures, allows existing firms to widen their product shelves and brings additional intermediaries into the regulated market.
ADAR Asset Management, Entrust Advisory and Everstrong Asset Management now join Kenya’s licensed fund management sector. Nairobi Leo reported that ADAR intends to structure and manage closed-end collective investment schemes, initially focusing on real estate-linked credit opportunities, while Entrust Advisory has moved from investment adviser status to a full fund manager licence. Everstrong is expected to focus on alternative investments across infrastructure, private equity, real estate, energy and related asset classes in Kenya and the wider East African region.
That mix shows how Kenya’s investment market is moving from a narrow savings culture toward a more segmented investment industry. For years, ordinary investors mostly encountered capital markets through shares, treasury bills, bonds, pension schemes and money market funds. The latest approvals point to a broader menu, including funds designed for different currencies, asset classes, maturity profiles and investor risk appetites.
Cinemark Unit Trust Fund has been approved with seven sub-funds covering Kenya shilling and US dollar money market, fixed income and multi-asset products. Karsis Unit Trust Scheme has been approved with twelve sub-funds covering money market, fixed income, multi-asset and private-debt strategies across Kenya shillings, US dollars, euros and sterling pounds.
The entry of these schemes matters because umbrella unit trust structures can allow managers to house several strategies under one regulated scheme. For investors, that can simplify access to different investment products. For regulators, it creates a clearer framework for supervision, documentation and compliance.
The approvals also show that established firms are still expanding. Absa Asset Management received approval for the Absa Global Multi-Asset Special Fund in Kenya shilling and US dollar denominations. Dry Associates was cleared to introduce euro and sterling special fixed-income funds. Madison Investment Managers obtained approval for a USD fixed-income special fund, while Tradiam Investment Services received approval for Kenya shilling and US dollar fixed-income funds under its existing unit trust structure.
This expansion is good for market depth, but it also calls for caution. A fund denominated in dollars, euros or sterling is not automatically safer than a shilling fund. A private-debt product is not the same as a bank deposit. A multi-asset special fund is not a conventional money market fund. Each product carries its own liquidity, valuation, credit, currency and duration risks.
Background: Why This Story Matters
Kenya has spent years trying to deepen its capital markets so that businesses, households and institutions can rely on more than banks and government securities for savings, financing and investment. The country has a relatively active securities market by regional standards, but participation remains concentrated among a small group of investors, institutions and urban savers.
Unit trusts have become one of the easiest entry points into formal investing. They pool money from many investors and place it into assets such as treasury bills, bonds, deposits, equities or other approved instruments. Money market funds, in particular, have grown popular because they are simple to understand, relatively liquid and often marketed as a cash-management alternative.
The new approvals suggest the market is entering a more complex stage. Fund managers are no longer limiting themselves to ordinary money market and fixed-income products. They are developing specialist funds for foreign currency exposure, diversified income, private debt, real estate-linked credit and multi-asset allocations.
That development can help Kenya in several ways. It can give savers more ways to preserve purchasing power, especially when inflation, currency movements or low bank deposit rates influence household decisions. It can also help businesses and infrastructure projects access pools of capital outside traditional bank lending.
However, the benefits depend on discipline. If funds are poorly explained, aggressively marketed or misunderstood, investors may take risks they did not intend to take. The CMA’s role therefore becomes more important as products become more specialised.
The regulator’s 2025 licensing changes also form part of the broader context. Legal analysis of Kenya’s updated capital markets licensing framework shows that the rules have widened the scope for digital investment advice, introduced new licence categories and adjusted capital and reporting requirements for market participants.
That regulatory shift is important because Kenya’s investment market is no longer purely branch-based or adviser-led. It is increasingly digital, mobile, payroll-linked and platform-driven. The market now needs rules that can supervise both traditional fund managers and technology-enabled distribution channels.
Key Details From the Development
The approvals can be grouped into four broad areas: new fund managers, new unit trust schemes, expanded products by existing asset managers and new specialised intermediaries.
Together, they show a regulator trying to widen the market while keeping new activity inside licensed channels. That is important in Kenya, where informal investment schemes and unregulated promises of high returns have repeatedly exposed savers to losses.
New Fund Managers Enter the Market
ADAR Asset Management, Entrust Advisory and Everstrong Asset Management are the main new fund management entrants in the latest licensing round.
ADAR’s planned focus on closed-end collective investment schemes is significant. Closed-end structures are different from open-ended funds because investors may not be able to enter and exit as freely as they would in a normal money market fund. This structure can suit assets such as real estate-linked credit or longer-term alternative investments, where daily liquidity may not match the underlying asset profile.
That model can support more sophisticated investment strategies. It can also prevent liquidity mismatches when properly designed. If a fund invests in assets that take time to mature, it should not promise investors instant exit unless it has enough liquid assets or clear redemption rules.
Entrust Advisory’s upgrade from investment adviser to fund manager shows how advisory businesses can move into product creation and portfolio management after meeting regulatory requirements. As a fund manager, the firm can offer a broader suite of managed investment products and services.
Everstrong’s planned focus on infrastructure, private equity, real estate, energy and other alternative asset classes aligns with a bigger financing question across East Africa. Governments and companies need long-term capital for roads, housing, energy, logistics and industrial projects. Banks remain important, but some projects require capital that can stay invested for longer periods.
For investors, these alternative strategies can provide diversification. But they are not risk-free. Infrastructure projects can face political, construction, payment and currency risks. Private equity can take years to realise returns. Real estate-linked products can be affected by occupancy, valuations, interest rates and market cycles. Energy investments can depend on regulation, tariffs and offtake agreements.
Cinemark and Karsis Add Multi-Fund Structures
The approval of Cinemark Unit Trust Fund and Karsis Unit Trust Scheme adds new capacity in the collective investment scheme market.
Cinemark’s seven sub-funds cover Kenya shilling and US dollar money market, fixed-income and multi-asset products. Karsis has a wider twelve-sub-fund structure covering money market, fixed income, multi-asset special funds and private-debt special fund strategies in Kenya shillings, US dollars, euros and sterling pounds.
This is a major development for investors who want currency choice. A dollar-denominated fund may appeal to diaspora savers, importers, exporters, professionals earning foreign currency or investors seeking a hedge against shilling depreciation. Euro and sterling products may appeal to investors with education, trade, travel or business obligations linked to those currencies.
Still, foreign-currency products must be understood carefully. If an investor earns in Kenya shillings but invests in a dollar, euro or sterling fund, exchange-rate movements can affect actual returns. A stronger shilling can reduce gains when converted back into local currency. A weaker shilling can improve local-currency returns, but that should not be the only reason to invest.
Private-debt special funds also require careful explanation. Private debt usually involves lending to companies or projects outside public bond markets. It can offer higher yields, but it may be less liquid and more difficult to value. Investors need to understand who the borrower is, what security exists, how interest is paid, how defaults are handled and whether early redemption is possible.
Existing Managers Expand Their Product Shelves
The latest approvals are not only about new entrants. Existing managers are also expanding into more targeted funds.
Absa Asset Management’s approval for a global multi-asset special fund in shilling and dollar denominations suggests a move toward diversified international exposure. Dry Associates’ euro and sterling special fixed-income products add foreign-currency options beyond the US dollar. Madison’s USD fixed-income special fund and Tradiam’s Kenya shilling and US dollar fixed-income funds further widen the fixed-income segment.
This matters because Kenya’s fund industry has often been dominated by products marketed around liquidity and yield. More multi-asset and foreign-currency options can help investors build portfolios for specific goals, such as education abroad, import planning, retirement diversification or institutional treasury management.
However, product expansion also increases comparison risk. Investors may look only at headline returns and ignore the underlying strategy. A high yield can reflect higher credit risk, longer duration, less liquidity or exposure to assets that are more difficult to sell quickly.
That is why the CMA’s reminder that investors should review information memoranda and trust deeds is important. Capital FM and The Kenya Times reported that the regulator urged investors to deal only with licensed intermediaries and to assess fund documents before committing money.
Power® Brings Payroll-Linked Investing Into Focus
The licensing of Frictionless Enterprises, trading as Power®, signals a different type of market expansion. Instead of only approving funds, the regulator is also recognising the importance of distribution infrastructure.
Power connects employer payroll systems and fund manager systems through APIs. That allows users to invest in money market funds managed by CMA-regulated fund managers directly from earnings. In earlier regulatory sandbox reporting, Frictionless Enterprises’ Power IO app was described as a tool enabling workers to invest and employers to manage deductions through the app’s deduction management system.
The idea is simple but powerful for savings behaviour. If an employee can allocate part of their salary to an investment before the money is spent, disciplined investing becomes easier. Payroll-linked investing can also help employers support financial wellness without becoming fund managers themselves.
For fund managers, platforms such as Power can widen distribution. Rather than relying only on branches, agents or manual onboarding, regulated funds can reach employees through workplace systems. That can reduce friction and improve consistency in contributions.
But digital distribution also brings regulatory questions. Investors must know which fund they are investing in, which fund manager is responsible, what fees apply, what risks exist and how redemptions work. Data privacy, consent, payroll deductions and complaint resolution must also be handled carefully.
A payroll-integrated investment platform should not make investing feel like a hidden deduction. Users need clear choices, transparent statements and easy access to fund information. As more financial services move into workplaces and mobile apps, investor protection will depend on both technology design and regulatory supervision.
Impact on Investors, Businesses and the Economy
For investors, the biggest impact is choice. The approvals create more ways to invest across currencies, asset classes and strategies. A retail investor may now see more options beyond a basic money market fund. A high-net-worth individual may access more structured income or alternative products. A diaspora investor may find regulated shilling and foreign-currency options. An institution may use special funds for treasury diversification.
But more choice is only useful when investors understand the differences. A money market fund usually focuses on short-term instruments and liquidity. A fixed-income fund may hold longer-term debt securities and can be more sensitive to interest-rate movements. A private-debt fund may be less liquid and more dependent on borrower performance. A multi-asset fund may combine several asset classes and can move differently from cash-like products.
Investors should therefore ask basic questions before committing funds. What does the fund invest in? How quickly can money be withdrawn? What fees apply? Is the return guaranteed or variable? What happens if interest rates rise? What happens if the shilling strengthens or weakens? Who is the custodian? What does the trust deed allow the manager to do?
For businesses, the approvals may gradually widen funding channels. Private-debt funds, real estate-linked credit strategies and alternative investment vehicles can help channel savings toward companies and projects that need capital. If managed prudently, this can reduce overdependence on bank lending and support longer-term financing.
For the economy, deeper capital markets can improve financial intermediation. Savings can be pooled and deployed into productive sectors. Fund managers can provide professional oversight. Regulated structures can improve transparency and reduce reliance on informal schemes.
The government also has an interest in deeper markets. A broader fund management sector can support infrastructure financing, housing, corporate debt markets and long-term savings. But the public benefit depends on trust. If investors suffer losses because products were poorly explained or mismatched to their needs, confidence can weaken.
That is why the regulator’s licensing wave must be matched by supervision. Product approval is not the end of the process. Ongoing disclosure, valuation standards, liquidity management, governance and advertising controls matter just as much.
Market, Policy or Industry Context
Kenya’s capital markets are changing at the same time as financial technology, savings behaviour and regulation.
The growth of mobile money created expectations that financial services should be instant, digital and accessible. Banks, insurers, pension providers and fund managers are now under pressure to deliver similar convenience. Younger investors are especially likely to expect app-based onboarding, real-time balances and lower entry amounts.
The CMA has already been moving toward a broader digital regulatory framework. Earlier reporting noted that proposed rules would expand the definition of investment advisers to include digital platforms that provide automated, algorithm-driven investment advice and would create categories for platforms that aggregate, market and distribute capital markets products.
This matters because distribution can shape investor outcomes as much as the fund itself. A good product can be mis-sold through a poor platform. A risky product can be marketed as safe. A long-term fund can be sold to investors who need short-term cash. A foreign-currency fund can be misunderstood as a guaranteed hedge.
The licensing wave also reflects a regional trend. African markets are trying to mobilise domestic savings for development while protecting retail investors from poorly regulated schemes. Kenya has an advantage because it already has an active regulator, a recognised securities exchange, a large pension industry and a strong fintech culture. But those strengths also create pressure to innovate faster.
The risk is that product innovation can run ahead of investor understanding. In several markets, the promise of high yields has attracted savers into products they did not fully understand. Kenya must avoid that cycle by insisting on plain-language disclosures, realistic advertising and proper suitability assessments.
There is also a macroeconomic angle. Foreign-currency funds can help investors manage exposure to global currencies, but they can also reflect local concerns about exchange-rate stability. Private-debt funds can support enterprise financing, but they require strong credit analysis. Real estate-linked funds can channel money into property finance, but they depend on transparent valuations and enforceable security.
The regulator’s challenge is to encourage innovation without allowing complexity to become a shield for weak governance. The latest approvals suggest the CMA is willing to broaden the market, but the next phase will test how well the new products are supervised.
What Comes Next
Investors should watch three areas after the licensing wave.
The first is actual product rollout. Approval does not always mean immediate mass-market distribution. Fund managers still need to complete documentation, appoint service providers, finalise operational systems and begin investor onboarding. The market should pay attention to information memoranda, trust deeds, fee structures and redemption rules.
The second area is marketing. As more funds compete for attention, managers may be tempted to focus on returns. That can be useful, but only if returns are presented with risk, liquidity and historical context. A fund investing in private debt or long-duration instruments should not be marketed in the same way as a conventional money market fund.
The third area is digital access. Platforms such as Power could make investing easier for salaried employees and workers connected to payroll systems. If adopted widely, payroll-linked investing could change savings habits. It could also create new partnerships between employers, fund managers and fintech firms.
For the regulator, the next task is enforcement. It will need to ensure that fund managers follow approved mandates, value assets properly, publish disclosures on time and treat investors fairly. It will also need to monitor whether digital distributors are giving investors accurate information and respecting consent.
For fund managers, competition will intensify. New entrants will need to prove that they can manage risk, communicate clearly and deliver consistent service. Existing managers will need to defend market share not only through yield, but through trust, governance and client education.
For investors, the lesson is practical. More products do not remove the need for due diligence. Investors should confirm that an intermediary is licensed, read the fund documents, understand the product’s risk level and avoid putting short-term emergency funds into products that may not offer immediate liquidity.
Expert Analysis
The latest approvals show that Kenya’s asset management industry is maturing, but also becoming more complicated.
The positive reading is that the CMA is widening the regulated market before unregulated alternatives fill the gap. Investors want better yields, foreign-currency exposure, digital access and diversified strategies. If licensed firms do not provide those products, informal operators may step in with weaker disclosure and higher risk.
By licensing new managers and approving new funds, the regulator is allowing innovation to happen inside the formal system. That improves the chances of proper oversight. It also gives investors a clearer path to check whether a firm is authorised.
The more cautious reading is that product complexity can easily outpace retail understanding. Many investors still treat all collective investment schemes as if they are money market funds. That is dangerous. A private-debt fund, a special fixed-income fund, a multi-asset special fund and a payroll-linked money market product can behave very differently.
The strongest opportunity lies in matching product design with investor needs. Payroll-linked money market investing may suit workers trying to build emergency savings or short-term reserves. Dollar fixed-income funds may suit investors with dollar expenses. Real estate-linked credit may suit investors who understand longer lock-in periods and property-market risk. Infrastructure and private equity strategies may suit long-term investors, institutions or sophisticated clients.
The biggest risk lies in weak disclosure. If fund managers market products using only attractive returns, the market could develop problems later. Investors must understand liquidity terms, fees, valuation methods, borrower exposure, currency exposure and downside scenarios.
CMA’s approval of adjacent intermediaries, including an investment adviser, a Shariah-compliant REIT manager, a coffee broker and Power® as a digital investment distribution platform, also shows that the regulator is thinking beyond asset managers alone. It is building the rails around the market. That includes advisory, property investment structures, commodity brokerage and digital access.
This is the correct direction for a market that wants to become deeper and more inclusive. But the quality of execution will matter. Kenya does not need more financial products simply for the sake of variety. It needs well-governed products that allocate capital efficiently, protect investors and support long-term confidence.
Frequently Asked Questions
What is the main issue?
The main issue is that Kenya’s Capital Markets Authority has approved a new batch of market participants and investment products. The approvals include new fund managers, new umbrella unit trust schemes, additional sub-funds under existing managers and specialised intermediaries in advisory, REIT management, coffee brokerage and digital investment distribution.
Why does the CMA licensing wave matter?
The CMA licensing wave matters because it expands Kenya’s regulated investment market. It gives investors more formal options beyond ordinary savings accounts and conventional money market funds. It also brings more activity under regulatory oversight, which can improve transparency and investor protection when properly enforced.
Who are the new fund managers?
The newly licensed fund managers are ADAR Asset Management, Entrust Advisory and Everstrong Asset Management. Public reports indicate that ADAR is expected to focus on closed-end collective investment schemes and real estate-linked credit, Entrust has upgraded from investment adviser to fund manager, and Everstrong is expected to focus on alternative investments such as infrastructure, private equity, real estate and energy.
What are Cinemark and Karsis bringing to the market?
Cinemark Unit Trust Fund has been approved with seven sub-funds covering Kenya shilling and US dollar money market, fixed-income and multi-asset products. Karsis Unit Trust Scheme has been approved with twelve sub-funds covering money market, fixed income, multi-asset and private-debt strategies in Kenya shillings, US dollars, euros and sterling pounds.
Are these new funds the same as ordinary money market funds?
No. Multi-currency funds, fixed-income special funds, private-debt funds, real estate-linked credit products and multi-asset special funds are not the same as ordinary money market funds. They may carry different liquidity, credit, currency, valuation and duration risks. Investors should read the information memorandum and trust deed before investing.
How does Power® fit into the licensing wave?
Power®, operated by Frictionless Enterprises, is important because it connects payroll systems with fund manager systems through APIs. This allows workers to invest from their earnings into money market funds managed by CMA-regulated fund managers. Earlier reporting shows that the Power IO app had been admitted into the CMA regulatory sandbox as a wage-linked investment solution.
What should investors watch next?
Investors should watch how the approved products are launched, how returns are marketed, what disclosures are provided and how easy it is to redeem funds. They should also confirm that they are dealing with licensed intermediaries and ensure that each product matches their financial goals, cash-flow needs and risk tolerance.
Conclusion
Kenya’s latest CMA licensing wave is more than a routine regulatory update. It marks a broader shift in the country’s investment market, from a limited menu of familiar savings products toward a more diverse, specialised and technology-enabled fund management industry.
The entry of ADAR Asset Management, Entrust Advisory and Everstrong Asset Management adds new capacity in professional fund management. The approval of Cinemark and Karsis gives investors access to wider unit trust structures. The expansion of product shelves by Absa, Dry Associates, Madison and Tradiam shows that established firms are also preparing for a more segmented market. The licensing of Power® points to a future where payroll-linked and API-enabled investing could become part of everyday financial planning.
For investors, this creates opportunity. More regulated options can help savers diversify, manage currency exposure and access professionally managed strategies. For businesses and the economy, deeper capital markets can support long-term financing and reduce overreliance on bank credit.
But the same development also demands caution. New products must be understood on their own terms. A higher-yielding fund may carry higher risk. A foreign-currency fund may expose investors to exchange-rate movements. A private-debt or real estate-linked product may not provide the same liquidity as a money market fund.
The direction of travel is positive. Kenya’s capital markets are becoming broader, more digital and more sophisticated. The next test will be whether fund managers, platforms and regulators can match innovation with transparency, suitability and discipline. If they do, the licensing wave could strengthen investor confidence and help Kenya build a deeper, more inclusive investment market.
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