The world of investing is shifting. As global markets remain volatile and unpredictable, Kenyan investors are increasingly turning towards safer, structured, and income-oriented investment vehicles that deliver stability without compromising performance. Fixed income funds have become one of the most reliable solutions for investors who need predictable returns, capital preservation, and professionally managed portfolios.
Among Kenya’s largest and most trusted providers of investment products is the CIC Group, through CIC Asset Management Ltd, which manages a wide range of Collective Investment Schemes (CIS). One of their flagship products is the CIC Fixed Income Fund (FIF)—a medium-risk, interest-generating portfolio designed for individuals and institutions seeking consistent returns that exceed those offered by traditional bank products.
In 2026, with rising interest rate environments, increased investor sophistication, and a growing need for structured savings options, the CIC Fixed Income Fund stands out as one of the most practical and reliable wealth-building tools.
This guide provides a complete breakdown of the CIC Fixed Income Fund—how it works, what it invests in, how it performs, the risks involved, and how it fits within short-, medium-, and long-term financial strategies.
Understanding the CIC Fixed Income Fund
Before analyzing performance and portfolio strategy, it’s important to understand what the fund is designed to achieve and who it serves.
A professionally managed interest-bearing fund
The CIC Fixed Income Fund is a Collective Investment Scheme regulated by the Capital Markets Authority (CMA). It pools investor contributions and channels them into a diversified basket of interest-earning securities.
Unlike a money market fund—which focuses on short-term securities—the CIC Fixed Income Fund expands the opportunity set into:
- Medium-term and long-term government bonds
- Treasury bills
- Corporate bonds
- Fixed and call deposits
- Commercial paper
This enables the fund to earn higher returns than typical short-term instruments while maintaining a moderate risk profile.
Purpose of the fund
The CIC Fixed Income Fund aims to deliver:
- Above-average medium-term returns
- Regular income distribution
- Capital stability
- Diversified exposure to the fixed-income market
- Better yields than savings accounts or fixed deposits
It is designed for investors who want to enhance returns without stepping into high-volatility asset classes.
Who manages the fund?
The CIC Fixed Income Fund is managed by CIC Asset Management Ltd, one of Kenya’s oldest and largest asset management companies. With billions of shillings under management and a strong market presence, CIC provides:
- Deep research capabilities
- Strong governance
- Broad investment experience
- Robust operational infrastructure
This institutional backing provides investors with confidence that their capital is being handled professionally.
Key Features and Correct Fund Terms
Based on CIC’s fund literature, fact sheets, and website information, these are the accurate and verified features of the CIC Fixed Income Fund:
Minimum investment and top-up
- Minimum initial investment: KES 5,000
- Minimum additional investment: KES 1,000
This makes the fund accessible to a wide range of investors—from first-time savers to established professionals and corporates.
Risk profile
The fund is classified as medium risk due to its exposure to medium-term bonds and corporate securities. However, the majority allocation to government securities keeps overall volatility low.
Income distribution
Income is typically distributed monthly, depending on the performance of underlying assets. Investors may also choose to reinvest income to enhance compounding.
Management fees
The CIC Fixed Income Fund charges an annual management fee of approximately 2%, which is consistent with the fees charged by CMA-regulated fixed income funds.
Fund size (AUM)
According to the September 2025 CMA CIS filings, the fund manages approximately KES 7.571 billion, positioning it among Kenya’s larger fixed-income portfolios by asset size.
Investment Philosophy and Strategic Approach
To understand how the CIC Fixed Income Fund delivers value, it is essential that we examine the fund’s core investment philosophy.
Stability over speculation
The fund is designed for investors seeking stable and predictable returns, rather than aggressive or speculative gains. Its mandate emphasizes:
- Principal protection
- Income consistency
- Balanced duration exposure
- Conservative credit selection
A research-driven process
CIC employs a structured investment discipline driven by:
- Macroeconomic analysis
- Bond market research
- Portfolio risk modeling
- Interest rate forecasting
- Independent credit assessments
This ensures every security added to the portfolio aligns with the fund’s yield, duration, and risk objectives.
Medium-term orientation
The ideal investment horizon for the CIC Fixed Income Fund is 12 to 36 months. Over this range, interest rate cycles tend to smooth out, allowing the fund’s diversified allocation to deliver reliable value.
Where the Fund Invests: Portfolio Allocation
The CIC Fixed Income Fund invests across a well-balanced mix of fixed income instruments.
Government securities
These form the majority of the portfolio—typically 80% or more, as indicated in CMA filings. Government securities include:
- Treasury bills (91-day, 182-day, 364-day)
- Treasury bonds of varying maturities
Government securities anchor the portfolio because they:
- Have low credit risk
- Provide stable coupon income
- Offer predictable cash flows
- Are highly liquid
Corporate bonds
The fund selectively invests in corporate debt issued by:
- Top-tier banks
- Strong corporates
- Institutions with consistent cash flow histories
Corporate bonds enhance overall fund yield, though they represent a smaller allocation due to higher credit risk.
Fixed and call deposits
These instruments enhance liquidity and create flexibility for managing inflows and redemptions.
Commercial paper
Short-term corporate instruments may be used for tactical yield enhancement.
Collective investment schemes (regulated)
The fund may allocate a small portion to other CIS-compliant investments where appropriate.
Fund Performance: Understanding Yields and Return Behavior
For many investors, performance is the most important question. The CIC Fixed Income Fund has consistently delivered stable returns in line with market expectations.
Effective annual yield
The May 2025 fact sheet implies an effective annual yield of approximately 11.11%. This yield reflects the fund’s ability to outperform typical fixed deposits and savings accounts while maintaining lower volatility than equities.
Daily yield (implied)
The daily yield embedded within the CIC performance pattern is approximately 10.89%, annualized. This is consistent with the fund’s interest-accrual structure as shown across CIC fixed income reporting.
Performance behavior over time
The CIC Fixed Income Fund tends to perform well in these conditions:
- When interest rates rise
- When government securities offer attractive yields
- When investors seek capital protection
- When fixed-income markets experience yield curve shifts
Due to its portfolio structure (80%+ government securities), the fund exhibits predictable behaviour, characterised by low drawdowns and stable month-to-month performance.
Market Context: Why CIC’s Fixed Income Strategy Works in 2026
Kenya’s interest rate environment in 2026 is favorable for fixed-income funds. Several macro factors support this:
Higher treasury yields
Government securities continue to offer compelling returns across the 5– to 10–year segment.
Stabilized inflation
Lower inflation improves real returns by preserving investor purchasing power.
Growing investor preference for structured income
More Kenyans—especially six-figure earners, SMEs, and professionals—prefer predictable returns over speculative gains.
Flight to safety
Periods of economic uncertainty prompt capital to shift from high-volatility assets into safer instruments, such as fixed-income funds.
Regulatory confidence
CIC Asset Management is a well-established, CMA-regulated institution that builds trust among conservative investors.
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Risk Analysis: Understanding the Medium-Risk Profile
No investment is risk-free, and the CIC Fixed Income Fund is no exception. However, its risks are managed well.
Interest rate risk
Longer-duration bonds may temporarily reduce in value when interest rates rise. CIC mitigates this by adjusting portfolio duration.
Credit risk
Corporate debt exposure carries default risk, but CIC invests only in investment-grade issuers.
Liquidity risk
Government securities and deposits provide natural liquidity to meet redemption demands.
Market risk
Inflation, currency fluctuations, and economic cycles can impact returns. Diversification helps manage these pressures.
Overall, the fund’s medium-risk rating reflects a balanced approach—offering higher yield potential than a money market fund, yet safer than equities.
Why Investors Choose the CIC Fixed Income Fund in 2026
The CIC Fixed Income Fund boasts several compelling features that make it an attractive investment option for Kenyan investors.
Strong brand trust
CIC has decades of experience managing savings, insurance products, and unit trusts.
Competitive yield
An approximate 11–11.5% annual return is strong relative to:
- Bank fixed deposits
- Savings accounts
- Treasury bills (short-term)
- Many money market funds
Ideal for medium-term goals
The 1–3 year horizon makes the fund suitable for:
- Education planning
- Business capital reserves
- Emergency buffers
- House deposit saving
- Structured long-term saving
Low volatility
Stable monthly returns with fewer surprises.
Strong institutional governance
Oversight by trustees, custodians, auditors, and regulators enhances investor protection.
Who Should Invest in the CIC Fixed Income Fund?
Young professionals
Those beginning their investment journey and seeking stability.
Middle-income earners
Looking to grow their savings with predictable yields.
SMEs and corporates
Needing a reliable yield on surplus capital.
Parents planning school fees
Especially within a 2–3-year window.
Retirees
Seeking consistent income and low volatility.
High-net-worth individuals
Looking for the stable portion of a diversified portfolio.
Anyone transitioning from savings accounts
A natural upgrade from low-yield bank products.
How to Join the CIC Fixed Income Fund
Step 1: Visit the CIC website
Access the Fixed Income Fund page under individual, SME, or corporate investment solutions.
Step 2: Complete the application
Forms are available online or through CIC’s offices.
Step 3: Provide KYC documents
Include identification, KRA PIN, and proof of address.
Step 4: Make initial deposit
Start with a minimum of KES 5,000.
Step 5: Maintain regular contributions
Minimum top-up is KES 1,000.
Step 6: Track performance
CIC shares monthly statements, fact sheets, and periodic market updates.
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FAQs
Is the CIC Fixed Income Fund safe?
The fund is considered medium-risk. Its heavy allocation to government securities makes it safer than equity-based products, while moderate corporate exposure helps boost yield. It is suitable for investors seeking stability and predictable income.
How much should I expect to earn?
While returns vary with market conditions, the implied annual yield of 11.11% provides a practical baseline. In years of strong bond performance, yields may exceed this level.
Can I withdraw anytime?
Yes, subject to standard unit trust redemption timelines. The fund is designed to be more stable than a money market fund but still relatively flexible.
What makes this fund different from the CIC Money Market Fund?
The Money Market Fund focuses on short-term liquidity and lower risk. The Fixed Income Fund seeks higher returns through medium-term bond exposure.
Is this fund suitable for retirement planning?
Yes. Conservative investors can use the CIC Fixed Income Fund as part of their retirement portfolio for stability and predictable income.
What is the ideal investment horizon?
The fund performs best over 12–36 months, making it ideal for medium-term financial planning.
Conclusion:
In a market where investors increasingly value predictability and stability, CIC’s Fixed Income Fund offers a structured pathway for wealth growth and capital preservation.
Whether you’re building savings, planning school fees, stabilizing business reserves, or diversifying your investment portfolio, the CIC Fixed Income Fund stands out as a dependable 2026 investment option.
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