Fund manager and wealth-tech startup Waanzilishi Capital Kenya Limited, which trades as Ndovu, has got the approval of the Capital Markets Authority (CMA) to set up a money-market fund. Waanzilishi has so far partnered with Zimele Asset Management Limited to offer the investment products.
The firm has also disclosed the approval to operate as an investment manager in Rwanda under its subsidiary Waanzilishi Capital Rwanda, allowing it to offer investment advisory and portfolio management services.
The money market fund licence will allow the start-up to invest primarily in short-term instruments, including treasury bills and fixed deposits.
It is set to join 39 other money market funds that are managed by 36 collective investment schemes (CIS).
Money market funds form part of unit trust schemes that have proved popular among retail investors based on their attractive returns, ease of entry and access of invested funds.
According to the CMA, unit trusts assets under management closed 2023 at Sh215 billion from Sh161 billion a year ago.
Money market funds are the most popular forms of unit trusts, representing a 65 percent share of the market or an asset base of Sh140.7 billion as of December 2023.
“The milestone underscores Ndovu’s continued innovation, aimed at providing every African, regardless of income level or financial knowledge, with the right tools to grow their wealth,” noted Ndovu CEO Radhika Bhachu.
Ndovu was founded in 2021 as a digital investment platform designed to enable clients to invest in the local and global financial markets.
The start-up also provides expert financial advice and is regulated by the CMA via a fund management licence.
