When it comes to growing your wealth in Kenya, you need investment options that strike a balance between solid returns and manageable risk. That’s exactly where the Lofty Corban KES bond fund enters the picture.
If you’ve been wondering whether this fund deserves a spot in your investment portfolio, you’re in the right place. This guide breaks down everything about the fund—from how it works to whether it’s the right fit for your financial goals as we head into 2026.
Understanding the Lofty Corban KES Bond Fund
The Lofty Corban KES bond fund is a fixed-income collective investment scheme that pools money from multiple investors. Then, the fund manager invests these pooled resources in a diversified portfolio of bonds, including both treasury and corporate bonds denominated in Kenyan Shillings.
Think of it this way: instead of buying individual bonds yourself, you’re joining forces with other investors. This approach gives you access to a professionally managed, diversified bond portfolio that would be difficult to build on your own.
The fund’s core objective? To provide a regular income over a longer duration while preserving your capital. It’s designed for investors who want something more robust than money market funds but aren’t quite ready to dive into the higher volatility of equity investments.
How the Lofty Corban KES Bond Fund Works
Understanding the mechanics helps you appreciate what you’re getting into. The fund operates under strict regulatory oversight from the Capital Markets Authority (CMA), which ensures transparency and investor protection.
Here’s what happens behind the scenes. Your money joins a pool managed by Lofty Corban Investments Limited, a licensed fund manager with a team of experienced professionals. These experts analyze market conditions, identify promising bond opportunities, and make strategic investment decisions on your behalf.
Key Players in the Fund Structure:
- Fund Manager: Lofty Corban Investments Limited (handles investment decisions)
- Trustee: KCB Bank (oversees operations and ensures compliance)
- Custodian: Equity Bank (safely holds the fund’s assets)
- Regulator: Capital Markets Authority (supervises the entire operation)
The fund primarily invests in treasury bonds and high-quality corporate bonds. Treasury bonds are government securities, which means they carry lower default risk since they’re backed by the Kenyan government. Corporate bonds, meanwhile, are issued by creditworthy companies and typically offer higher yields to compensate for the slightly elevated risk.
Additionally, the fund maintains a balanced approach. The fund manager doesn’t put all its eggs in one basket—instead, it spreads investments across different bond maturities and issuers. This diversification helps manage risk while optimizing returns.
Current Performance and Returns
Numbers tell an important story. As of December 2025, the Lofty Corban KES bond fund has been delivering returns of approximately 12.77% annually. That’s significantly higher than what you’d typically earn from traditional savings accounts, which hover around 6-8%.
Here’s how the fund performed throughout 2025:
| Period | Return Rate |
| Q1 2025 (March) | 12.31% |
| Q2 2025 (June) | 12.72% |
| Q3 2025 (September) | 12.25% |
| November 2025 | 13.23% |
| December 2025 | 12.77% – 12.99% |
To put this in perspective, if you invested KES 100,000 in the fund, you could expect to earn around KES 12,770 in returns over a year (before the 2% management fee). Not too shabby, right?
Moreover, these returns have remained relatively stable throughout 2025, ranging between 12% and 13%. This consistency, even as market conditions fluctuated, is exactly what many investors look for when building long-term wealth.
However, remember that past performance doesn’t guarantee future results. Market conditions change, interest rates fluctuate, and bond prices move accordingly. Still, the fund’s track record speaks to the management team’s ability to navigate different market environments.
Key Benefits of Investing in the Lofty Corban KES Bond Fund
So why should you consider this particular fund? Let’s examine the compelling advantages that distinguish it.
Higher Returns Than Money Market Funds
While money market funds in Kenya typically offer returns between 10-11%, the Lofty Corban KES bond fund consistently delivers higher yields. This difference might seem small, but over time, it compounds into substantial additional wealth.
The reason? Bond funds invest in longer-term instruments that generally pay higher interest rates than the short-term securities found in money market funds.
Professional Management with Proven Experience
You’re not going at it alone. Lofty Corban’s investment team boasts over 125 years of combined experience. Founded by seasoned investment professionals in 2021, the company has grown its assets under management to KES 4 billion by May 2025—a remarkable 645% growth from KES 388.48 million in December 2023.
These certified financial professionals constantly monitor market conditions, conduct thorough credit analyses, and adjust the portfolio to optimize returns. Consequently, you benefit from expertise that would be nearly impossible to replicate as an individual investor.
Accessibility and Affordability
Here’s where things get really interesting. You can start investing in the Lofty Corban KES bond fund with just KES 1,000. That’s right—a thousand shillings gets you into the game.
Furthermore, subsequent investments require only KES 100 minimum. This low barrier to entry makes bond investing accessible to everyday Kenyans, not just the wealthy elite. Whether you’re a salaried employee, a small business owner, or a fresh graduate starting your financial journey, you can participate.
Regulatory Oversight and Protection
The fund operates under the watchful eye of the Capital Markets Authority. This regulatory framework ensures that your investment is handled in accordance with strict legal standards. The fund must maintain separate roles for the trustee (KCB Bank), custodian (Equity Bank), and fund manager, creating multiple layers of accountability.
Additionally, this separation of duties means no single entity controls all aspects of your investment. It’s a system designed to protect your interests.
Predictable Income Stream
Unlike equity investments, which can yield variable returns, bond funds offer more predictable returns. The interest payments from bonds create a steady income stream that gets reinvested in your account or paid out, depending on your preference.
This predictability makes the Lofty Corban KES bond fund particularly attractive if you’re looking to invest money wisely in Kenya with a focus on stability. It’s not about chasing massive gains—it’s about consistent, reliable growth.
Risks You Should Know About
Let’s keep it real. No investment is completely risk-free, and the Lofty Corban KES bond fund is no exception. Understanding these risks helps you make informed decisions.
Interest Rate Risk
When interest rates rise in the economy, the prices of existing bonds typically fall. Why? Because new bonds get issued at higher rates, making older bonds less attractive. This inverse relationship means your fund’s value could temporarily decline during periods of rising interest rates.
However, the fund manager actively manages this risk by maintaining a diversified portfolio with varying maturities. Some bonds mature quickly, allowing reinvestment at new rates, while others lock in higher rates for longer periods.
Credit Risk
While treasury bonds are essentially risk-free (backed by the government), corporate bonds carry the possibility that the issuing company might default. If a company struggles financially, it may not be able to make its interest payments or return its principal.
That said, Lofty Corban invests only in high-quality corporate bonds from creditworthy issuers. They conduct thorough due diligence before adding any corporate bond to the portfolio.
Liquidity Considerations
Bond funds are generally less liquid than money market funds. While you can typically redeem your units, there might be notice periods. According to Lofty Corban’s FAQ, you can expect funds to be credited within 2 working days after submitting a redemption request.
Additionally, withdrawal fees apply: your first withdrawal within a calendar month is free, but subsequent withdrawals incur a fee of KES 500 each. For short-term needs, consider keeping funds in a money market account instead. Think of the Lofty Corban KES bond fund as a medium to long-term investment vehicle—ideally, you should be comfortable leaving your money invested for at least one to three years.
Market Volatility
Bond prices fluctuate in response to various factors, including economic conditions, inflation expectations, and political events. During turbulent times, you might see the fund’s value dip even if the underlying bonds eventually pay out as expected.
Nevertheless, bonds are generally less volatile than stocks. If you’re comparing this to equity investments, bond funds offer a much smoother ride.
Who Should Invest in the Lofty Corban KES Bond Fund?
Not every investment suits every investor. Here’s who typically benefits most from this fund:
- Conservative investors seeking growth beyond savings accounts
- Portfolio diversifiers balancing stocks, real estate, and cash
- Medium to long-term savers (3-5 year goals) planning for major purchases
- Retirees or near-retirees needing a steady income with capital preservation
- Young professionals starting with small amounts (KES 1,000 minimum)
Comparing Investment Options: What Works Best for You?
Understanding how different investment vehicles compare helps you make more informed choices. Here’s a comprehensive comparison:
| Investment Type | Minimum Investment | Typical Returns (2025) | Liquidity | Risk Level | Best For |
| Lofty Corban KES Bond Fund | KES 1,000 | 12-13% | Moderate (2 days notice) | Moderate | 3-5 year goals, steady income |
| Money Market Funds | KES 100-1,000 | 10-11% | High (same day) | Low | Emergency funds, short-term savings |
| Treasury Bonds (Direct) | KES 50,000+ | 12-16% | Low (locked until maturity) | Low | Long-term, hands-on investors |
| Equity Funds | KES 1,000 | 13-15% | Moderate | High | Long-term growth, risk tolerance |
| Fixed Deposits | KES 10,000+ | 8-10% | Very Low (locked period) | Very Low | Guaranteed returns, conservative |
Versus Money Market Funds
Money market funds offer higher liquidity and slightly lower risk. You can access your money almost immediately, and returns are stable. However, the Lofty Corban KES bond fund typically delivers annual returns 1-2% higher than the benchmark, which adds up significantly over time.
If you need an emergency fund or plan to use the money within a year, consider investing in money market funds. For longer-term goals where you can afford to leave your money invested, the bond fund makes more sense.
Versus Treasury Bonds Directly
You could buy treasury bonds directly through the CBK DhowCSD platform. However, this requires larger minimum investments (typically KES 50,000 or more for most bonds) and demands that you monitor maturity dates and reinvestment opportunities yourself.
The Lofty Corban KES bond fund handles all this complexity for you, starting at just KES 1,000. Additionally, the fund diversifies across multiple bonds, a feat that is challenging to achieve with limited capital when buying bonds directly.
Versus Equity Funds
Equity funds invest in stocks and potentially offer higher returns—Lofty Corban’s equity fund posted 13.42% in December 2025. However, stocks are much more volatile. You might gain 20% one year and lose 10% the next.
The bond fund offers more stability and predictability. If you’re risk-averse or nearing a financial goal where you can’t afford significant losses, bonds provide peace of mind that equities can’t match.
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How to Get Started with the Lofty Corban KES Bond Fund
Ready to take the plunge? The process is straightforward and can be completed online in about 15 minutes.
Step-by-Step Registration Process:
- Visit the website – Go to loftycorban.com and click “CREATE ACCOUNT”
- Fill personal details – Name, ID number, date of birth, email, phone number
- Add employment info – Your occupation and employer details
- Provide bank details – For deposits and withdrawals
- Name beneficiaries – Next of kin information (percentages must total 100%)
- Upload documents – National ID/passport, KRA PIN, proof of address (JPEG, PNG, PDF, JPG formats only)
- Submit and wait – Account activation typically takes 1 business day
- Make your deposit – Transfer KES 1,000+ to start investing
Deposit Methods:
You can fund your account through:
- Bank transfer to Lofty-Corban Kenya Shillings Collection Account (Account Number: 1080284389344)
- Cash or cheque deposit at any Equity Bank branch (no cost)
- Standing order for automatic monthly contributions
Investment Strategies to Maximize Returns in 2026
Getting into the fund is just the beginning. Here are some strategies to make your investment work harder for you.
Start Small and Build Consistently
Don’t feel pressured to invest a large sum immediately. Begin with the minimum KES 1,000 and add to it gradually. Consider establishing a standing order to invest KES 500-1,000 monthly. Consistency matters more than size when you’re starting out.
Harness the Power of Compounding
When your investment generates returns, resist the temptation to withdraw them immediately. Instead, let them remain invested. Returns are calculated daily and compounded monthly—this means you earn returns on your returns. That’s the magic of compounding at work.
Maintain a Long-Term Perspective
Short-term market fluctuations are normal. Don’t panic and withdraw your funds just because the value dips temporarily. Bond funds are designed for medium to long-term holding periods. Give your investment time to ride out market cycles and deliver the expected returns.
Build a Diversified Portfolio
Don’t put all your money in one basket. While the Lofty Corban KES bond fund is excellent, consider this allocation strategy:
- 40% Emergency fund in money market funds (high liquidity)
- 30% Bond fund for steady growth (medium-term goals)
- 20% Equity funds for higher returns (long-term growth)
- 10% Alternative investments (REITs, SACCOs, etc.)
This balanced approach ensures you have liquidity when needed while maximizing growth potential.
Understanding Fees and Tax Implications
Transparency about costs helps you plan better. Here’s what you need to know:
Fund Fees:
- Annual management fee: Approximately 2% of assets under management
- First withdrawal per month: Free
- Subsequent withdrawals: KES 500 per withdrawal
Tax Considerations:
For interest income from bond funds, a 15% withholding tax applies. This deduction is applied before the returns are credited to your account, so the rates you see advertised (like 12.77%) represent gross returns before tax.
| Gross Return | Withholding Tax (15%) | Net Return After Tax |
| 12.77% | 1.92% | 10.85% |
Additionally, be aware that if you make a capital gain from selling your units at a profit, capital gains tax may apply, depending on current regulations. Always consult with a tax professional or refer to the Kenya Revenue Authority guidelines for the most up-to-date tax treatment of investment income.
The good news? Lofty Corban handles much of this administrative work for you, deducting applicable taxes and providing monthly account statements (check your email—your member number is your password).
Why 2026 Is a Strategic Time to Invest
Looking ahead to 2026, several factors make the Lofty Corban KES bond fund particularly attractive:
Economic Stabilization: Inflation fell to 3.5% in early 2025, creating a more stable environment for bond investments. Treasury bill rates, which hit 16% in July 2024, have normalized to around 8-9%, but bond funds continue delivering double-digit returns.
Proven Track Record: With KES 4 billion in assets under management and consistent returns throughout 2025, Lofty Corban has demonstrated its ability to navigate various market conditions. The firm serves over 10,000 clients and is ranked 16th out of 45 fund managers in Kenya.
Continued Innovation: Lofty Corban announced plans to launch a specialized global fund in 2025, bringing their total investment products to seven. This shows commitment to providing diverse investment opportunities for Kenyan investors.
Accessible Entry Point: Unlike many international investment opportunities requiring significant capital, you can start building wealth with just KES 1,000. This democratization of investment opportunities is crucial for Kenya’s growing middle class.
Frequently Asked Questions (FAQs)
What is the minimum investment for the Lofty Corban KES bond fund?
You can start investing with just KES 1,000 as your initial deposit. After that, you can make additional contributions with a minimum of KES 100 per transaction. This accessibility makes it one of the most affordable bond funds available to Kenyan investors, making it ideal for those seeking to invest with little money in Kenya.
How often are returns paid out?
Returns are calculated daily and compounded monthly. Interest gets reinvested automatically unless you arrange for withdrawals. This daily calculation with monthly compounding means you’re continuously earning returns on your returns. For example, with a 16.92% daily yield, KES 1,000 invested for one year would grow to approximately KES 1,182.96 through compounding.
Can I withdraw my money at any time?
Yes, but with some considerations. You need to submit a redemption request via email to service@loftycorban.com with the exact amount you want to withdraw. Your funds will be credited to your bank account within 2 working days. Note that the first withdrawal per calendar month is free, but subsequent withdrawals incur a fee of KES 500 each.
Is my investment insured like bank deposits?
The fund is regulated by the Capital Markets Authority (CMA), which provides a framework of investor protection. However, unlike bank deposits protected by the Kenya Deposit Insurance Corporation, investment funds don’t carry deposit insurance. Your protection comes from regulatory oversight, the mandatory separation of fund manager, trustee, and custodian roles, and professional management of your investments.
How does the Lofty Corban KES bond fund compare to fixed deposits?
Fixed deposits offer guaranteed returns but typically pay lower interest rates (around 8-10%) compared to bond funds, which offer returns of 12% or more. However, fixed deposits provide absolute certainty of returns, while bond fund returns can fluctuate. The bond fund also offers more flexibility—you’re not locked in for a specific period, unlike with fixed deposits. However, a KES 500 fee applies to subsequent withdrawals each month.
What fees are charged on the fund?
The fund charges an annual management fee of approximately 2% of assets under management. This fee covers professional management, administrative costs, regulatory compliance, and 24/7 account access. It’s deducted from the fund’s returns before they’re credited to your account. Additionally, there’s a 15% withholding tax on interest income (handled automatically) and KES 500 per withdrawal after your first free withdrawal each month.
Making Your Investment Decision
The Lofty Corban KES bond fund offers an attractive middle ground between conservative money market funds and aggressive equity investments. With proven returns of 12-13% throughout 2025, professional management by a team with 125+ years of combined experience, and accessibility starting at just KES 1,000, it’s a solid option for many Kenyan investors.
However, only you can determine if it fits your specific situation. Consider your financial goals, risk tolerance, and investment timeline. If you’re seeking stable, above-average returns and can commit your funds for at least one to three years, this fund is worthy of serious consideration.
Remember: the best investment strategy is often a diversified one. The Lofty Corban KES bond fund can play a valuable role alongside money market funds, equities, and other investments in your broader portfolio.
Ready to take the next step? Start small with KES 1,000, watch how the fund performs, and gradually increase your investment as you build confidence. Your future self will thank you for the wise financial decisions you’re making today
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