Radhika Bhachu, CEO and co-founder Ndovu, speaking during the launch of Ndovu Wealth Kibaba Multi-Asset Special Fund /HANDOUT
By JACKTONE LAWI
Kenyan investors have been urged to diversify their portfolios through multi-asset special funds as the country’s investment market expands amid global economic uncertainty.
Ndovu Wealth Chief Executive Officer Radhika Bhachu said the fund is designed to help investors navigate complex financial markets through diversified portfolios.
“The fund invests across multiple asset classes and adjusts its holdings based on market trends, allowing investors to hedge against inflation, currency fluctuations and volatility in local markets,” she said.
Investors can participate through either a Kenya shilling or US dollar-denominated option, with minimum entry requirements of Sh250,000 or $2,500.
The call comes as wealth management firm Ndovu Wealth Limited launched the Kibaba Multi-Asset Special Fund, an investment vehicle aimed at giving local investors exposure to international markets while cushioning them against domestic economic volatility.
The fund, licensed by the Capital Markets Authority, targets investors seeking diversified portfolios across global asset classes including equities, bonds, commodities, exchange-traded funds (ETFs) and real estate investment trusts (REITs).
Kenya’s special fund segment has expanded rapidly in recent years as investors shift away from traditional savings products in search of higher returns and broader diversification.
Industry data shows the country had 29 special funds managing about Sh86.6 billion by early 2025, highlighting the rising adoption of alternative investment products.
The broader Collective Investment Schemes (CIS) industry has also recorded strong growth, with assets under management rising to Sh679.6 billion by September 2025, up from Sh596.3 billion earlier in the year.
This was driven by increased investor participation and the launch of new funds.
Analysts say the growth reflects a gradual shift among investors particularly high-net-worth individuals and institutional players towards structured funds that provide exposure beyond Kenya’s traditional stock and bond markets.
Despite the growth, adoption of diversified multi-asset funds in Kenya still lags behind developed markets.
In mature financial markets such as the US and the UK, multi-asset and diversified funds account for a significant share of retail investments as individuals seek balanced exposure to equities, bonds and commodities within a single portfolio.
Across parts of Europe, pension funds and institutional investors widely allocate assets to diversified funds to manage risk and stabilize long-term returns.
By contrast, Kenyan investors have historically favoured money market funds and government securities, which are considered safer but often deliver lower long-term growth.
Regulators view the expansion of specialised funds as part of efforts to deepen Kenya’s capital markets and broaden investor choice.
The Capital Markets Authority has in recent years approved several new collective investment schemes, including global multi-asset strategies and offshore investment vehicles.
Analysts say growing financial literacy and digital investment platforms could further accelerate adoption of diversified funds among retail investors.
For investors seeking protection from local economic shocks and currency risks, multi-asset special funds are increasingly emerging as a gateway to global investment opportunities. The Star
