Assets under management for Collective Investment Schemes have grown steadily over the last six years to Sh206.7 billion as of September 2023, according to new data by the Capital Markets Authority.
This is a 265 per cent rise from Sh56.6 billion in March 2018.
The growth comes amidst tough operating domestic and global macro-economic environment.
Capital Markets Authority CEO Wycliffe Shamiah who was speaking during the unveiling of a new asset management platform by Zimele maintained that markets have stood stable despite the challenges.
"Kenya's capital markets have remained stable. The assets under management for collective investment schemes have grown steadily. Zimele's assets under management have surged by 220 per cent during the same period, reaching Sh2.9 billion," said Shamiah.
With its latest launch, the asset management firm is looking to tame the runaway fraud that has been associated with Chamas, through a new platform that will increase transparency of financial dealings.
The firm has unveiled a digital investment platform aimed at transforming how chamas handle their operations.
According to the firm, the platform known as "Chama manager," will address the longstanding issue faced by small group members who contribute money without clear records of their financial transactions.
Isaac Njuguna, Joint CEO of Zimele Asset Management, said some of the major problems faced by chamas are lack of transparency and accountability from people handling those financial groups.
"As a company, we have always endeavored to not only give our customers access to practical savings solutions at modest entry levels, but also provide them with innovative products that are tailored to meet their savings and investment needs," said Njunguna.
He added that through the platform, members can track their Chama's account statements and receive alerts for any initiated transactions which will tame fund misuse.
