The Zimele Fixed Income Fund has established itself as one of the most trusted low-risk investment options in Kenya. In a period of fluctuating interest rates and inflationary pressure, the fund has continued to provide steady, predictable returns to investors seeking both safety and consistent growth.
As of June 2025, the fund managed Ksh 3.41 billion in assets, according to the Capital Markets Authority (CMA) Q2 2025 Collective Investment Schemes Report. Its gross yield stood at 13.41%, with a daily yield of 12.65% as of 11 July 2025, confirming its strong income-generating capacity.
About the Zimele Fixed Income Fund
The Zimele Fixed Income Fund is a regulated unit trust managed by Zimele Asset Management Ltd and licensed by the Capital Markets Authority (CMA). It invests in a mix of Treasury Bonds, Treasury Bills, Infrastructure Bonds, Corporate Bonds, and bank deposits, focusing on safety and consistent income.
Launched in April 2007, the fund initially operated as part of the Zimele Savings Plan, a product designed to help Kenyans build disciplined savings habits.
In line with regulatory reforms and market evolution, Zimele transitioned the Savings Plan into the Zimele Fixed Income Fund to align it with Kenya’s Collective Investment Schemes framework, ensuring greater transparency, flexibility, and investor protection.
Fund Snapshot (as of June 2025):
| Feature | Information |
| Launch Date | April 2007 |
| Fund Manager | Zimele Asset Management Ltd |
| Fund Trustee | KCB Bank Kenya Ltd |
| Custodian | Standard Chartered Bank Kenya Ltd |
| Auditor | Louse & Associates |
| Fund Size (June 2025) | Ksh 3.41 Billion |
| Currency | Kenya Shillings (KES) |
| Minimum Investment | Ksh 100 |
| Minimum Top-up | Ksh 100 |
| Initial Fee | 0% |
| Annual Management Fee | 2.00% |
| Daily Yield (as of 11 July 2025) | 12.65% |
| Gross Yield (as of 11 July 2025) | 13.41% |
| Risk Profile | Conservative |
The fund’s low entry point, flexible M-Pesa access, and zero-penalty structure make it an attractive choice for both individuals and institutions seeking an easy yet effective way to grow wealth securely.
Key Features and Investment Objective
The fund aims to generate consistent interest income while preserving investors’ capital. It’s ideal for savers, professionals, businesses, and chamas seeking a dependable alternative to savings accounts or money market funds.
Its core objectives are:
- To preserve capital while providing competitive interest income.
- To offer liquidity and flexibility for both short- and medium-term goals.
- To create a disciplined, transparent, and low-entry investment vehicle accessible to all income levels.
Performance and Yields
Zimele has maintained strong performance across short- and long-term horizons.
According to the June 2025 Fund Fact Sheet, it delivered a 12-month gross return of 14.89%, outperforming its benchmark — the FTSE Bond Index and 364-Day Treasury Bill Composite.
| Period | Zimele Fixed Income Fund | Composite Index (FTSE Bond Index + 364-Day T-Bill) |
| 3 Months | 3.72% | 3.06% |
| 6 Months | 7.45% | 6.23% |
| 9 Months | 11.17% | 9.97% |
| 12 Months | 14.89% | 14.23% |
| 3 Years (Annualized)** | 13.60% | 14.53% |
This performance highlights the fund’s consistent outperformance and prudent portfolio management. The gross yield of 13.41% and daily yield of 12.65% (as of July 11, 2025) demonstrate Zimele’s ability to sustain high returns despite a challenging interest rate environment.
Returns are credited monthly and automatically reinvested to maximize compounding.
Asset Allocation
Zimele’s portfolio is strategically diversified across government and high-quality private sector securities, striking a balance between income stability and liquidity.
| Asset Class | Allocation (%) |
| Treasury Bonds | 46.51% |
| Infrastructure Bonds | 33.28% |
| Treasury Bills | 0.37% |
| Corporate Bonds | 0.15% |
| Call Deposits | 17.07% |
| Fixed Deposits | 2.62% |
| Bank Balances | 0.37% |
The dominance of Treasury and Infrastructure Bonds (nearly 80%) ensures predictable returns and minimal default risk.
Call and fixed deposits maintain adequate liquidity to handle daily redemptions efficiently.
Fund Size, Fees, and Key Parties
| Details | Information |
| Fund Size (June 2025) | Ksh 3.41 Billion |
| Management Fee | 2.00% per annum |
| Minimum Investment | Ksh 100 |
| Minimum Top-up | Ksh 100 |
| Entry Fee | None |
| Trustee | KCB Bank Kenya Ltd |
| Custodian | Standard Chartered Bank Kenya Ltd |
| Auditor | Louse & Associates |
| Fund Manager | Zimele Asset Management Ltd |
The fund’s oversight structure, involving KCB Bank (Trustee) and Standard Chartered Bank (Custodian), guarantees transparency and investor protection. Zimele’s management team maintains a disciplined investment policy that has consistently preserved investor capital since inception.
Comparison: Zimele vs NCBA Fixed Income Fund
While both funds share similar objectives, they cater to different investor needs and operate at different scales.
| Parameter | Zimele Fixed Income Fund | NCBA Fixed Income Fund (KES) |
| Fund Size (AUM) | Ksh 3.41 Billion | Ksh 34.18 Billion |
| Daily Yield (as of Nov 2025) | 12.65% | 7.55% |
| Gross Yield (as of Jul 2025) | 13.41% | 7.82% (Effective Annual Yield) |
| Management Fee | 2.00% | 2.00% |
| Minimum Investment | Ksh 100 | Ksh 1,000 |
| Fund Manager | Zimele Asset Management Ltd | NCBA Investment Bank |
| Trustee | KCB Bank Kenya Ltd | Standard Chartered Bank Kenya Ltd |
| Risk Profile | Conservative | Conservative |
The Zimele Fixed Income Fund outperforms its peers in terms of yield due to its lean structure, smaller asset base, and active reinvestment strategy. The NCBA Fund, however, benefits from greater liquidity depth and corporate participation, making it more suited for larger portfolios.
Also Read: Jubilee Fixed Income Fund Guide
Who Should Invest
This fund is suitable for investors who value security, flexibility, and a consistent income. It’s ideal for:
- Individuals saving for short- to medium-term goals such as school fees, rent, or vacations.
- Chamas and investment groups seeking stable group returns.
- Entrepreneurs and SMEs are seeking a secure place to park their business surplus cash.
- Professionals transitioning from money market funds to higher-yield options.
- Investors aiming for capital preservation with steady compounding growth.
How to Invest
Joining the Zimele Fixed Income Fund is quick, fully digital, and flexible.
Steps:
- Visit www.zimele.co.ke and open an investment account.
- Go to M-Pesa, PayBill 501100, and enter your Zimele Account Number or Name as the account reference.
- Deposit a minimum of Ksh 100 (top-ups can be any multiple of this).
- Access statements and returns online or through the Zimele App.
Interest is calculated daily, credited monthly, and reinvested automatically for compounding growth. Withdrawals are processed within two working days with no penalties.
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Frequently Asked Questions
1. What is the minimum amount required to invest?
You can start with just Ksh 100, and add as little as Ksh 100 anytime thereafter.
2. What are the current yields?
As of 11 July 2025, the gross yield is 13.41%, and the daily yield stands at 12.65%.
3. Can I withdraw anytime?
Yes. The fund offers full liquidity with no withdrawal restrictions or penalties.
4. How safe is this fund?
It is regulated by the Capital Markets Authority (CMA), with assets held by Standard Chartered Bank Kenya Ltd as the custodian.
5. What was the Zimele Savings Plan?
The Zimele Fixed Income Fund is an evolution of the former Zimele Savings Plan, which was upgraded to a Collective Investment Scheme structure to enhance transparency, flexibility, and investor protection.
Conclusion
The Zimele Fixed Income Fund has solidified its place as a reliable income-generating investment for conservative investors in 2025. With a gross yield of 13.41%, a daily yield of 12.65%, and a KSh 100 minimum entry of KSh 100, it combines accessibility, transparency, and performance in a way few funds can match.
Its evolution from the Zimele Savings Plan to a regulated Fixed Income Fund marks a new era for everyday savers — one where professional management meets flexibility and investor empowerment.
For investors seeking stability, growth, and peace of mind, Zimele remains a top-tier choice.
