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Fund managers’ profits surge on growth of assets
The assets of collective investment schemes (CISs), which are overseen by fund managers rose by 28 percent in the first quarter ended March 2025 to Sh496.2 billion from Sh389.2 billion in December 2024.
Fund managers have multiplied profits on substantial growth of assets under management (AUM) as Kenyans continue to pile into collective investment schemes.
An analysis of fund managers’ financial statements reveals the soaring profits for the players which is also aligned with the growth in assets or invested funds.
Sanlam Investments East Africa Limited has for instance realised a 150 percent net profit growth for the six months period ended June 2025 to Sh356.3 million from Sh142 million at the same time last year.
The firm saw its fund management fees rise to Sh1.3 billion from Sh708.9 million previously, helping to lift total income by 88.9 percent to Sh1.37 billion from Sh725.1 million.
The assets managed by the firm, which includes a money market fund (MMF), fixed income and a balanced fund, increased by 195 percent to Sh92.9 billion from Sh31.5 billion previously.
Fund managers charge up to two percent to oversee the investment of clients’ funds.
This implies that the players increase their earnings primarily by growing their managed assets.
On its part, Etica Capital Limited saw its total income grow by seven-fold from Sh14.7 million to Sh121.2 million in June 2025 with revenue which is primarily management fees reaching Sh109.1 million from Sh14.2 million.
The fund manager turned a profit of Sh70.1 million in the period, climbing from a loss of Sh6.2 million in June 2024. During the period, the assets of the fund manager rose by over four times to touch Sh12.7 billion in June 2025 from Sh2.5 billion previously.
The rapid growth of assets over the past year has outpaced the drop in interest rates to see both fund managers’ fees and total investment income for the pooled funds rise.
Etica Capital Co-founder Kenneth Maina says the assets being managed are a large driver of a fund manager’s profitability.
“This business is an AUM business. The bigger the AUM, the more the income,” he said.
“A time like this last year, our AUM was at Sh2.5 billion but by the time we were reporting our financials for June 2025, our AUM was at over Sh12 billion. That shows you that our income potential has also gone up.”
The assets of collective investment schemes (CISs), which are overseen by fund managers rose by 28 percent in the first quarter ended March 2025 to Sh496.2 billion from Sh389.2 billion in December 2024.
“The increase can be attributed to overall growth reported by existing CIS funds as well as additional funds registered by existing umbrella schemes. The increase can also be attributed to intensified marketing efforts by the fund managers,” the Capital Markets Authority (CMA) said.
As of March 31, 2025, the CMA had approved 55 collective investment schemes (CISs) which comprised 234 funds.
The money market fund or MMF —a scheme investing primarily in short-term deposits and securities— remains the most popular type of CIS with other fund types including fixed income funds, equity funds, balanced funds and special funds.
