What You Need To Know About Special Funds In Kenya

Special funds in Kenya are rapidly transforming how investors think about returns, risk, and capital growth. With assets exceeding KES 137 billion and some funds delivering over 20% annual returns, these instruments are becoming central to wealth creation strategies.

MANSA-X Special Fund

Mansa-X stands as the dominant force in Kenya’s special funds market, controlling over KES 107 billion in assets and accounting for the majority market share. The fund’s growth has been driven by consistent high returns averaging around 18–20% annually since inception, with a peak of 20.74% in 2025.

The fund operates a multi-asset strategy, investing across global equities, currencies, commodities, and fixed income. This diversification allows it to generate returns regardless of market direction, including through long/short strategies.

Key conditions include a minimum investment of KES 250,000, a 6-month lock-in period, and a 5% annual management fee. A performance fee applies only when returns exceed a 25% hurdle rate, aligning incentives between the investor and fund manager.

From an investor perspective, Mansa-X is best suited for individuals seeking institutional-level exposure with strong capital preservation mechanisms and high growth potential.

OAK Special Fund

The OAK Special Fund is a fast-growing player with approximately KES 11.4 billion in assets under management. Despite being newer, it has quickly established itself as a competitive high-return fund, delivering close to 19% returns.

OAK employs a leveraged asset allocation strategy, giving it the ability to amplify returns through tactical positioning across markets. This makes it attractive for investors with higher risk tolerance.

The fund requires a minimum investment of KES 500,000 and charges a 6% annual management fee. Its lock-in period is also 6 months, allowing fund managers to deploy capital effectively.

For investors, OAK represents a balance between aggressive growth and structured investment, particularly for those looking to diversify beyond traditional financial instruments.

KUZA Special Fund

KUZA Special Fund is designed for accessibility, with a minimum investment of KES 100,000. It has grown to manage approximately KES 455 million, making it smaller but increasingly popular among retail investors.

The fund has demonstrated strong growth, delivering returns of over 20% in recent periods. Its structure includes a 2% management fee and a 20% performance fee on returns above a 12% benchmark.

KUZA’s strategy focuses on high-growth opportunities, making it suitable for investors who are willing to accept higher volatility in exchange for higher returns.

This fund plays a critical role in democratizing access to high-yield investments in Kenya.

MMF vs Special Funds Comparison

Money Market Funds (MMFs) typically deliver returns of 9–11%, significantly lower than special funds. While MMFs prioritize capital preservation and liquidity, special funds aim for aggressive growth through diversified and sometimes leveraged strategies.

The gap between MMFs and special funds highlights a fundamental trade-off between risk and return. Investors must choose based on their financial goals, time horizon, and risk appetite.

Overall, Soko Directory Research finds that special funds are redefining the investment landscape in Kenya. They offer higher returns, broader diversification, and greater opportunities for capital growth, but they also require a deeper understanding of risks and market dynamics.

Read Also: Mansa-X Special Funds Cross USD 1 Billion Mark, Post Returns of Up to 20.74% in 2025