A Collective Investment Scheme (CIS) — commonly known as a unit trust or mutual fund — pools money from multiple investors for collective investment in securities, money market instruments, or other assets. Approval is granted by the Capital Markets Authority (CMA) under the Capital Markets (Collective Investment Schemes) Regulations, 2023, with annual fees additionally governed by the Sixth Schedule of the Capital Markets (Licensing) Regulations, 2025.
Typical CMA Fee Range for a CIS
| Charge | Approximate Amount (KES) |
|---|---|
| Application/Approval Fee | 100,000 – 150,000 |
| Annual Renewal Fee | 80,000 – 100,000 |
| Fund Manager Annual Regulatory Fee | 0.05% of AUM (min. KES 100,000, max. KES 15,000,000) |
Note that the CIS itself (the fund/scheme) pays an approval and annual fee, while the fund manager running the scheme separately pays an annual regulatory fee calculated as a percentage of assets under management, capped at KES 15 million. Exact figures should be confirmed with CMA’s current published schedule, as this area has seen recent regulatory revision.
Requirements for Approval
- A registered trustee and custodian, both independently licensed by CMA
- A comprehensive trust deed or scheme constitutive document
- An information memorandum disclosing investment policy and risk
- Adequate governance and conflict-of-interest safeguards
- Compliance with diversification and investment restriction rules
Application Process
- Submit application with trust deed, information memorandum, and fund manager/trustee/custodian appointments
- CMA reviews the application (statutory processing period of 60 days)
- Pay the prescribed application/approval fee
- Receive CMA approval to operate as a CIS
- Pay the annual renewal fee each subsequent year, alongside the fund manager’s AUM-based regulatory fee
Kenya now has over 50 approved collective investment schemes, reflecting steady growth in the unit trust industry. While the headline approval fee is in the low hundreds of thousands of shillings, the AUM-based annual fee means larger funds will pay considerably more over time — making this a cost structure that scales with success.
