Capital Markets Authority has approved Faida Investment Bank Limited to register the KETSA Alternative Investment Fund, a trust-based vehicle established under the Capital Markets (Alternative Investment Funds) Regulations, 2023 — marking a significant step in bridging institutional capital with the country’s vast cooperative finance sector.
The KETSA fund is structured to invest across a broad range of asset classes, including private debt, equities, money market instruments, fixed income securities, and other approved investments. What distinguishes it from conventional unit trust vehicles is its explicit strategic focus: intermediating institutional capital into the Savings and Credit Cooperative (SACCO) ecosystem through prudently structured liquidity and investment opportunities.
“The fund will invest in private debt, equities, money market instruments and fixed income securities — with a focus on intermediating institutional capital into prudently structured liquidity and investment opportunities within the SACCO ecosystem.”
SACCOs represent one of the most significant pillars of Kenya’s financial inclusion story, collectively managing hundreds of billions of shillings in member savings. Yet access to diversified institutional funding — critical for SACCOs to expand lending and manage liquidity shocks — has historically been constrained. The KETSA fund’s mandate directly addresses this gap, positioning itself as a conduit between regulated capital markets and the cooperative finance sector.
The approval was announced as part of a broader CMA wave of new Collective Investment Scheme registrations, which also included several new unit trust schemes from Capital A Investment Bank, EDC Asset Management (Kenya), Pergamon Investment Bank, and Meridian Asset Management — collectively expanding the range of regulated savings and investment products available to Kenyan investors.
The CMA reminded investors to familiarise themselves with the terms of any scheme before committing funds, and to deal exclusively with licensed and approved capital markets intermediaries. As the KETSA Alternative Investment Fund moves towards launch, market participants will be watching closely to see how effectively it can structure products that meet the liquidity and credit needs of a SACCO sector that serves millions of Kenyans.
KETSA ( Kenya Teachers SACCO Association) is a collaborative organization in Kenya that unites, represents, and advocates for teacher-based SACCOs.
Source: Capital Markets Authority Press Release
Fund at a glance
- Fund manager: Faida Investment Bank Limited
- Structure: Trust, established under AIF Regulations 2023
- Asset classes: Private debt, equities, money market, fixed income
- Strategic focus: SACCO ecosystem liquidity & investment
- Regulator: Capital Markets Authority (CMA), Kenya
