The Nabo KES Fixed Income Fund has steadily climbed into the top tier of Kenya’s fixed-income investment landscape. With a strong track record, stable double-digit performance, and professional portfolio management, this fund appeals to investors who want consistent income, capital preservation, and a disciplined long-term strategy.
Unlike money market funds, which focus on short-term instruments, this fund delves deeper — investing in medium- and long-term government bonds and high-grade fixed-income assets. The result is simple: stronger returns, stable growth, and an investment that performs even when economic cycles shift.
If you’re looking for a reliable income-generating fund with a data-backed performance history, this guide will show you why Nabo KES Fixed Income Fund deserves your attention.
What Is the Nabo KES Fixed Income Fund?
The Nabo KES Fixed Income Fund is a low-to-medium risk unit trust that invests primarily in Kenyan government bonds, high-yielding deposits, and quality corporate debt to generate stable income and long-term capital growth.
It suits investors seeking predictable returns above those of standard bank deposits, while maintaining a strong emphasis on capital preservation.
Fund Overview
| Item | Verified Detail |
| Fund Name | Nabo Fixed Income Fund (KES) |
| Fund Structure | Unit Trust |
| Inception Date | December 2018 |
| Fund Size (AUM) | KES 2.94 Billion |
| NAV (Unit Price) | KES 185.41 |
| Reporting Currency | KES |
| Benchmark | 364-Day Treasury Bill |
| Fund Manager | Nabo Capital Ltd |
| Portfolio Manager | Charles Miano |
| Assistant Portfolio Manager | Nkirote Rintaugu |
| Trustee | KCB Bank |
| Auditor | Grant Thornton |
| Custodian | Stanbic Bank |
This provides investors with a clear picture of a well-governed, professionally managed fund that has the right checks and balances in place.
How the Nabo KES Fixed Income Fund Works
The Nabo KES Fixed Income Fund is designed to deliver stable income and moderate capital appreciation. It achieves this through a strategic blend of fixed-income securities, with a heavy bias toward secure government bonds.
Nabo Capital employs active management, enabling the investment team to adjust the fund’s duration, credit exposure, and liquidity positioning in response to changing market conditions. This adaptability is one reason the fund has shown strong consistency in performance.
The internal process combines economic research, yield curve analysis, credit evaluation, and risk management, resulting in a disciplined, predictable, and methodical investment strategy.
Portfolio Allocation
The August 2025 portfolio allocation shows an extremely conservative strategy with a dominant exposure to Government bonds.
| Asset Class | Allocation |
| Government Bonds | 89.0% |
| Cash & Equivalents | 8.3% |
| Corporate Debt | 2.7% |
| Total | 100% |
This structure makes the fund highly stable and relatively insulated from credit shocks, while still delivering attractive yields.
Why This Allocation Matters
- Government bonds drive predictable income
- Cash ensures liquidity for redemptions and rebalancing
- Corporate debt adds incremental yield without raising overall risk
This allocation aligns with the fund’s low-to-medium risk rating.
Performance & Yields
The Nabo KES Fixed Income Fund has one of the most consistent performance profiles in Kenya’s fixed-income category.
Below are yields from the August 2025 factsheet:
| Period | Fund Performance | Benchmark (364-Day T-Bill) |
| Aug 2025 | 12.8% | 9.6% |
| Jul 2025 | 12.8% | 9.7% |
| YTD (2025) | 12.8% | 10.2% |
| QTD (2025) | 12.8% | 9.9% |
| 1 Year | 13.8% | 11.8% |
| 3 Year | 14.3% | 12.9% |
| 5 Year | 15.3% | 11.3% |
The numbers speak for themselves — Nabo outperforms the benchmark across all periods.
Long-Term Historical Returns (Net of Fees)
| Year | Annualized Return |
| 2019 | 12.25% |
| 2020 | 12.90% |
| 2021 | 12.13% |
| 2022 | 12.41% |
| 2023 | 12.18% |
| 2024 | 12.61% |
| 2025 YTD | 12.80% |
This is one of the most consistent fixed-income track records in the Kenyan market.
Costs, Fees & Minimum Requirements
Investment Terms
| Item | Detail |
| Minimum Initial Investment | KES 100,000 |
| Minimum Top-Up | KES 10,000 |
| Initial Fee | Nil |
| Management Fee | Up to 2.25% |
| Redemption Fee | 0.25% (within 6-month lock-in) |
| Expense Ratio | 0.19% |
Lock-In Period
There is a 6-month lock-in period for the initial investment, during which time redemptions incur a 0.25% fee.
This positions the fund for medium- to long-term investors rather than short-term traders.
Risk Profile & Ideal Investor
The Nabo KES Fixed Income Fund has low to medium risk, supported by a portfolio structure that is heavily weighted towards government securities.
Risk Factors
- Low volatility
- Minimal credit exposure
- Stable return range
- Strong liquidity management
- Long, proven track record
Who Should Invest?
The fund is ideal for:
- Investors seeking predictable income
- Professionals with medium-to-long-term goals
- Retirees who want stable payouts
- Corporations and institutions with surplus cash
- Anyone building a conservative fixed-income base
This fund suits investors who prioritize stability over aggressive, high-risk yield chasing.
How Nabo Compares to Other Fixed Income Funds in Kenya
| Fund | Yield Behaviour | Minimum Investment | Risk |
| Nabo KES Fixed Income Fund | Stable, consistent | KES 100,000 | Low–Moderate |
| Jubilee Fixed Income Fund | Strong yields | KES 5,000 | Low |
| Britam Bond Plus Fund | Strong, stable | KES 1,000 | Low–Moderate |
| Zimele Fixed Income Fund | Conservative | KES 100 | Low |
| NCBA Fixed Income Fund | Moderate | KES 1,000 | Low |
Nabo’s minimum investment is higher, making it more suitable for committed long-term investors.
How to Invest in the Nabo KES Fixed Income Fund
- Visit the Nabo Capital website
- Select the “Individual Investors” or “Collective Investment Schemes” section
- Open an investment account
- Complete the standard KYC process
- Deposit your initial KES 100,000
- Receive units based on the NAV
- Add top-ups from KES 10,000
- Track performance via monthly statements and factsheets
The process is straightforward and professional, with strong investor reporting.
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FAQs
What does the Nabo KES Fixed Income Fund invest in?
The Nabo KES Fixed Income Fund invests primarily in government bonds, high-yielding deposits, and carefully selected corporate debt. This blend helps the fund generate stable returns while maintaining low volatility. Its government-heavy structure makes it one of the more secure fixed-income options in the market.
Is the Nabo KES Fixed Income Fund safe?
The fund is categorized as low to medium risk because it is anchored on Government of Kenya bonds, which provide strong safety and predictable income. Corporate exposure is minimal and thoroughly screened to protect investors from credit risk. While not risk-free, the fund has maintained consistent positive performance since 2019.
What yield can I expect from the Nabo KES Fixed Income Fund?
Based on verified 2025 data, the fund delivers returns between 12.8% and 15.3%, depending on the measurement period. This includes annual, 3-year, and 5-year returns, all of which consistently beat the benchmark. Investors should expect stable, double-digit returns under normal market conditions.
What is the minimum investment for the Nabo KES Fixed Income Fund?
The minimum initial investment is KES 100,000, reflecting the fund’s positioning for committed, medium-term investors. Top-ups start from KES 10,000, allowing you to build your portfolio strategically over time. This makes the fund ideal for professionals, corporates, and disciplined savers.
Who should consider investing in the Nabo KES Fixed Income Fund?
This fund is suitable for investors seeking stable income, low volatility, and moderate long-term growth. It works well for retirees, corporate treasuries, long-term planners, and anyone building a conservative fixed-income strategy. It is especially ideal for those who prefer predictable returns over speculative investing.
Does the Nabo KES Fixed Income Fund protect my capital?
While no fund can guarantee capital preservation, Nabo’s heavy allocation to government bonds significantly reduces downside risk. The conservative approach ensures that investor capital grows steadily over time. The fund’s multi-year track record shows exceptional consistency with low volatility.
Conclusion
The Nabo KES Fixed Income Fund is one of the most consistent, well-managed, and stable fixed-income funds available in Kenya. With a 6-year record of delivering steady double-digit returns, a government-heavy portfolio, and a strong focus on disciplined management, this fund offers the perfect balance of safety and performance.
For investors who want predictable income, dependable long-term returns, and professional management, Nabo is a compelling choice.
If you’re serious about stable wealth building, this fund deserves a place in your portfolio.
