If you invested Ksh 1,000,000 in a good Fixed Income Fund earning a 12% net annual return for the next 10 years,
You would have approximately Ksh 3,105,848.
That is Ksh 2,105,848 earned through the power of compound interest.
Fixed Income Funds (FIFs) remain one of the most overlooked investment opportunities in Kenya.
Everyone talks about Money Market Funds.
Very few people talk about Fixed Income Funds.
Yet these funds continue to quietly outperform most Money Market Funds.
While many MMFs are still striving to deliver a 10% net return, 6 Fixed Income Funds are already above that mark as at 31st July 2026.
The biggest difference?
MMMs mainly invest in short-term securities, while FIFs invest across both short- and long-term fixed income assets, including:
- Treasury Bills, Treasury Bonds, Corporate Bonds and other approved fixed income securities.
Here is the latest Fixed Income Fund Performance (After Tax):
- Arvocap Almasi Fund — 16.24%
- Sanlam Fixed Income Fund — 13.46%
- Etica Fixed Income Fund — 12.63%
- ICEA Fixed Income Fund — 11.45%
- Nabo Fixed Income Fund — 10.91%
- Zimele Fixed Income Fund — 10.35%
Key Insights
The average after-tax return across the 11 Fixed Income Funds analyzed now stands at 10.91%.
Top 3 Gainers This Period
- Sanlam Fixed Income Fund: +2.75% (13.09% → 15.84%)
- Etica Fixed Income Fund: +1.06% (13.80% → 14.86%)
Biggest Decliners:
- Nabo Fixed Income Fund: -0.83% (13.67% → 12.84%)
- Zimele Fixed Income Fund: -0.17% (12.35% → 12.18%)
Macroeconomic Update
Inflation: 6.4% → 6.5%
Treasury Bill yields remained largely stable:
- 91-Day: 8.83% → 8.79%
- 182-Day: 8.97% → 8.95%
- 364-Day: 8.99% → 9.02%
The Central Bank Rate (CBR) remained unchanged at 8.75%.
What Does This Mean?
If your investments consistently earn less than inflation, your purchasing power quietly declines over time.
Your goal should be to invest in funds that consistently beat inflation and, where possible, outperform the current market average of 10.91% after tax.
A Fixed Income Fund is ideal for:
- Emergency Fund
- Children’s Education Fund
- Home Construction or Purchase
- Car Purchase
- Retirement Planning
- Financial Freedom Portfolio
- Business Expansion Capital
- Wedding Fund
The Secret Move:
Many investors still keep all their cash in underperforming Money Market Funds.
Yet several Fixed Income Funds have consistently delivered superior returns while offering similar accessibility.
A well-selected FIF can be a powerful complement—or even an alternative—to your MMF.
Get your money working harder for you.
WhatsApp me “BEST FIF” on 0703472299, and I’ll recommend my favourite Fixed Income Funds.
Your Turn,
Do you already have a Fixed Income Fund account?
Alex Mwangi | The Cent Warrior | WhatsApp 0703472299
