The Capital Markets Authority (CMA) has approved a fresh batch of investment products as part of efforts to widen investment opportunities for both individual and institutional investors.
In a statement issued on Tuesday, the regulator said the approvals include new collective investment schemes such as unit trusts, special funds and an Alternative Investment Fund (AIF).
According to CMA, the new products are expected to give Kenyans more regulated options for saving and investing, ranging from low-risk money market products to more aggressive multi-asset investment strategies.
Among the products approved is the Capital A Multi Asset Strategy Special Fund, which will be available in both Kenya shilling and US dollar options.
The fund shall be regulated through the current Capital A Unit Trust and is projected to focus on reaching out to investors that need exposure to a variety of asset classes.
These clearances follow a period during which many Kenyans have begun investing in securities like stocks, foreign exchange trading, and money market products due to the desire for improved profits and protection from a declining shilling.
CMA noted that this was part of an overall strategy to foster growth in the capital markets of Kenya as well as innovations within the investment industry while expanding investment product access for various types of investors.
While issuing this clarification, CMA also encouraged Kenyans to invest carefully and only use licensed companies and approved investment platforms.
This alert follows closely behind a warning issued by CMA last week cautioning Kenyans against engaging with unlicensed foreign exchange, cryptocurrency, and money market products due to increased incidents of fraud.
According to the authority, investors who use unregulated platforms risk losing all their money since such firms operate outside the law and are not protected under the Capital Markets Act.
CMA also noted that recovering money lost through illegal investment schemes is often difficult because the regulator cannot intervene where firms are not licensed.