The Capital Markets Authority (CMA) has approved the registration of the Pergamon Investment Bank Unit Trust Scheme, opening up new regulated investment opportunities for Kenyan investors as the country pushes to deepen participation in capital markets.
The newly approved scheme by Pergamon Investment Bank will comprise six sub-funds tailored to different investor needs and risk appetites. These include the Pergamon Money Market Fund (KES), Pergamon Money Market Fund (USD), Pergamon Equity Fund, Pergamon Fixed Income Fund, Pergamon Balanced Fund and the Pergamon Special Diversified Income Fund (KES).
The approval comes at a time when Kenya is increasingly relying on collective investment schemes, commonly known as unit trusts, to mobilise savings and channel more capital into the economy. Unit trusts allow investors to pool resources into professionally managed portfolios while spreading risk across multiple asset classes.
Industry data shows the sector has experienced rapid growth in recent years as more Kenyans seek alternatives to traditional savings accounts amid rising financial literacy and digital access to investment products.
According to market figures, assets under management in Kenya’s unit trust industry rose to approximately Sh679.6 billion by September 2025, up from Sh596.3 billion recorded earlier in the year. The figure marks a sharp increase from Sh56.6 billion recorded in 2018, highlighting the growing appetite for regulated investment products among retail and institutional investors.
The industry currently consists of more than 55 licensed unit trust schemes managing over 230 funds. Money market funds continue to dominate the sector, accounting for nearly 60 per cent of total assets under management due to their liquidity and relatively low risk profile.
Analysts attribute the expansion of the market to lower minimum investment requirements, increased adoption of mobile and online onboarding platforms, and growing awareness among younger investors seeking to build wealth through diversified financial products.
Speaking after the registration of the scheme, Pergamon Investment Bank Chief Executive Officer Wanjiru Gichuru described the approval as a key milestone for the firm and the wider investment industry.
“Today marks a significant milestone for our investment bank. The registration of our unit trust scheme has taken us one step closer towards realising our vision of offering innovative regulated investment options to our clients,” she said. “It also brings us one step closer towards fulfilling our mandate of contributing to the deepening of our country’s capital markets.”The entry of new fund managers and investment products into the market is expected to increase competition and broaden investment choices for Kenyans seeking higher returns and diversified portfolios.
The CMA has in recent years intensified efforts to strengthen Kenya’s capital markets through product diversification, investor education and tighter regulation aimed at boosting confidence in licensed investment vehicles.
Financial sector players say the continued expansion of collective investment schemes could play a crucial role in improving the country’s savings culture, particularly among middle-income earners and first-time investors.
Retail participation in unit trusts has grown significantly, with an estimated 2 to 3 million Kenyans now investing in the products, supported by simplified enrolment processes and digital investment channels.
The approval of the Pergamon scheme is expected to further accelerate competition in the sector as firms race to attract investors with tailored products targeting both conservative and aggressive investment strategies.
As Kenya seeks to position Nairobi as a regional financial hub, regulators and industry players are increasingly banking on collective investment schemes to widen financial inclusion and unlock long-term domestic capital for economic growth.
