The Britam Bond Plus Fund is one of Kenya’s most established fixed-income funds, designed to offer investors a stable and reliable income stream. It’s managed by Britam Asset Managers (Kenya) Limited, part of the Britam Group — a leading financial services provider licensed and regulated by the Capital Markets Authority (CMA) and the Retirement Benefits Authority (RBA).
Unlike a money market fund that focuses on short-term instruments, this fund invests mainly in medium- to long-term treasury bonds and corporate debt securities. The goal is to deliver better yields than regular savings accounts or fixed deposits while maintaining reasonable liquidity and capital stability.
As of June 2025, Britam’s Unit Trust Scheme held an impressive KSh 41.15 billion in total AUM, placing it fifth overall in Kenya’s collective investment schemes market.
Within this structure, the Britam Bond Plus Fund alone commands Ksh 19.59 billion, making it the third-largest Fixed Income Fund in the country, after NCBA and Sanlam’s fixed income offerings.
Investment Objective and Strategy
The Britam Bond Plus Fund seeks to generate superior returns over the medium term by investing predominantly in:
- Government treasury bonds
- Corporate bonds
- Fixed-income securities, such as commercial paper and term deposits
The fund is actively managed to strike a balance between yield enhancement and risk control. Its managers analyze interest rate trends, bond durations, credit ratings, and inflation data to optimize portfolio positioning.
This structure makes it ideal for investors seeking predictable income and moderate capital growth, without the volatility of equities.
Why Choose the Britam Bond Plus Fund
The fund appeals to both individual and institutional investors looking for consistency and professional management. Its core advantages include:
1. Competitive Returns
Britam’s Bond Plus Fund has consistently outperformed traditional fixed deposits by leveraging higher-yielding bonds and diversified credit exposure. For context, Britam’s reported Effective Annual Yield (EAY) has ranged between 13.5% and 13.9% over the past year — a strong result for a low-to-medium risk fund.
2. Professional Management
The fund is managed by Britam’s experienced investment team, which actively monitors macroeconomic conditions, interest rate movements, and credit risks to safeguard investor capital and optimize performance.
3. Accessibility
Investors can start with as little as Ksh 1,000, making the fund accessible to both first-time and seasoned investors. Top-ups can be made at any time via *Britam’s digital platforms, USSD 778#, or their customer portal.
4. Liquidity and Flexibility
While primarily designed for a 1- to 3-year horizon, the fund remains open-ended, meaning investors can withdraw their funds with minimal delay — typically within 48 hours of a redemption request.
5. Diversification and Safety
By pooling investors’ resources, the fund diversifies across several high-quality government and corporate bonds, reducing concentration and default risks.
Key Facts at a Glance
| Feature | Details (as of Q2 2025) |
| Fund Type | Fixed Income Fund |
| Fund Manager | Britam Asset Managers (Kenya) Ltd |
| Trustee | KCB Bank Kenya Limited |
| Custodian | Standard Chartered Bank Kenya Limited |
| Auditor | PricewaterhouseCoopers (PwC) Kenya |
| Regulation | CMA & RBA Licensed |
| Assets Under Management (AUM) | Ksh 19.59 Billion |
| Minimum Investment | Ksh 1,000 |
| Management Fee | Up to 2.5% p.a. |
| Liquidity | Withdrawals within 24–48 hours |
| Recommended Holding Period | 12 – 36 months |
| Effective Annual Yield (EAY) | ~ 13.73 % – 13.87 % |
| Risk Profile | Low to Medium |
| Benchmark | 91-day Treasury Bill + Spread |
Portfolio Composition and Strategy
The fund primarily invests in long-term fixed income securities such as Treasury Bonds, with some exposure to high-quality corporate bonds and fixed deposits.
In Q2 2025, approximately 84% of its portfolio was held in Government of Kenya bonds, and the remaining 16% in cash and short-term deposits. This mix provides steady income with capital protection.
Britam’s investment committee reviews the portfolio regularly to ensure the average maturity and duration align with prevailing market conditions. When interest rates rise, the fund adjusts its duration to manage potential mark-to-market losses.
How the Fund Has Performed
The Britam Bond Plus Fund’s AUM has grown consistently, reflecting strong investor confidence.
Between March 2025 and June 2025, the fund’s assets grew from Ksh 16.5 billion to Ksh 19.59 billion, representing a 19% quarter-on-quarter increase — one of the fastest among comparable funds in Kenya.
This growth reflects a broader shift among investors toward fixed income funds, which experienced a 23% sector-wide increase in Q2 2025, as documented by the CMA. Investors are increasingly seeking higher yields amid volatile equity markets and pressures from currency depreciation.
Comparison: Britam Bond Plus vs Money Market Funds
| Aspect | Britam Bond Plus Fund | Britam Money Market Fund |
| Target Investors | Medium-term investors seeking higher yields | Short-term investors seeking liquidity |
| Investment Instruments | Treasury & corporate bonds | Treasury bills, deposits, short-term notes |
| Risk Level | Low-to-Medium | Very Low |
| Liquidity | 24–48 hours | 24 hours |
| Expected Returns | 13 – 14% p.a. | 12 – 13% p.a. |
| Minimum Investment | Ksh 1,000 | Ksh 1,000 |
| Recommended Horizon | 12 – 36 months | 0 – 12 months |
This comparison shows that while both funds are conservative, the Bond Plus Fund offers a higher return for investors who can commit for a slightly longer period.
Who Should Invest in the Britam Bond Plus Fund
The fund fits a range of investors:
- Professionals and high-income earners seeking predictable, above-inflation returns with moderate risk.
- Corporates and SMEs managing surplus cash or building a reserve fund.
- Retirees or income-focused investors desiring regular interest income and capital safety.
- Foundations, schools, and NGOs needing low-risk instruments for liquidity management.
It’s also ideal for investors transitioning from money market funds but not yet ready for equities or alternative investments.
How Returns Are Generated
Returns arise from interest income and capital gains on bonds and deposits. The fund distributes these gains in the form of unit price growth, meaning the value of your investment compounds over time.
If interest rates in the market rise, the fund invests new contributions in higher-yielding bonds, thereby maintaining its competitiveness. When rates fall, existing long-term bond holdings often experience capital appreciation.
Example of Potential Returns
Let’s assume you invest KSh 1,000,000 in the Britam Bond Plus Fund at an effective annual yield of 13.8%.
| Year | Opening Balance (Ksh) | Interest (13.8%) | Closing Balance (Ksh) |
| Year 1 | 1,000,000 | 138,000 | 1,138,000 |
| Year 2 | 1,138,000 | 157,944 | 1,295,944 |
| Year 3 | 1,295,944 | 178,838 | 1,474,782 |
After 3 years, your initial investment would have grown by approximately 47%, excluding withholding tax.
Risk Management
Britam employs a multi-layered approach to safeguard investors’ capital:
- Diversification – spreading exposure across multiple issuers, sectors, and maturities.
- Credit analysis – evaluating the creditworthiness of all corporate debt issuers.
- Duration control – managing interest-rate sensitivity to minimize mark-to-market losses.
- Liquidity management – maintaining a portion in cash and near-cash assets for redemptions.
- Regulatory oversight – CMA supervision and independent audits by PwC ensure transparency.
These safeguards make the fund one of the more resilient fixed-income vehicles in Kenya’s market.
Tax Treatment
Income from the fund is subject to a 15% withholding tax on interest earnings. For most investors, this tax is final, meaning there is no additional tax obligation. Institutions with tax-exempt status (such as pensions or charities) may be exempt upon providing the necessary documentation.
All returns quoted by Britam are typically gross of withholding tax, so that net returns will be slightly lower, depending on your category.
Performance Context within Kenya’s Fixed Income Sector
As of June 2025, the Fixed Income Fund category held Ksh 105.6 billion in total assets, representing 18% of all collective investment scheme assets.
Britam Bond Plus ranked third overall, trailing only:
- NCBA Fixed Income Fund – Ksh 34.18 billion
- Sanlam Fixed Income USD Fund – Ksh 20.81 billion
Britam’s 19% quarterly growth reflects its rising appeal among institutional and individual investors seeking a balance of yield and stability.
How to Invest
Investing in the Britam Bond Plus Fund is simple:
- Open an account via the Britam website, App, or Customer Portal.
- Complete the application form (provide ID, KRA PIN, and proof of source of funds).
- Deposit your funds through MPESA, bank transfer, or cheque.
- Receive units based on the prevailing unit price.
- Track your investment through digital platforms and monthly statements.
- Redeem or reinvest as needed — withdrawals typically processed within 48 hours.
Why the Britam Bond Plus Fund Matters in a Portfolio
For Kenyan professionals and businesses seeking to preserve wealth, generate consistent income, and diversify risk, the Britam Bond Plus Fund is a key investment tool.
It sits comfortably between money market funds (for short-term liquidity) and special funds or equity funds (for long-term growth). This middle ground makes it particularly attractive for investors seeking sustainable passive income.
Its performance stability, transparent reporting, and strong governance framework further enhance its credibility.
Get Your Free Wealth Masterplan E-Book from CentWarrior Here!
Risks and Drawbacks to Keep in Mind
While the fund is considered low-risk, it’s not risk-free. Key considerations include:
- Interest Rate Risk: When rates rise sharply, bond values may temporarily fall.
- Market Volatility: External shocks (inflation, fiscal pressures, or global events) can affect returns.
- Early Redemption: Exiting too soon may limit your returns, as the fund is designed for a minimum holding period of 12 months.
- Taxation: Returns are subject to withholding tax, which slightly lowers net yield.
Nonetheless, the fund remains far less volatile than equities or real estate investments.
Conclusion
The Britam Bond Plus Fund is one of Kenya’s most reliable fixed-income investment options, balancing attractive returns, liquidity, and capital stability.
With KSh 19.59 billion in AUM and strong professional management, it continues to attract both retail and institutional investors who value discipline and steady income.
For professionals, SMEs, and corporates seeking to grow idle funds without exposing themselves to high risk, this fund stands out as a practical, proven solution.
As you diversify beyond money market funds, the Britam Bond Plus Fund offers a smart next step — a bridge between liquidity and long-term wealth growth.
