The Capital Markets Authority (CMA) has issued a strong warning to Kenyans investing in Money Market Funds (MMFs), buying shares, or putting their money into the capital markets. The advisory comes as part of efforts to protect the public from rising cases of investment fraud.
In a Public Service Announcement released on Tuesday, July 15, CMA urged Kenyans to carry out proper research and due diligence before making any investment decisions. The authority cautioned that there are fraudsters pretending to be licensed investment firms, luring people with fake promises of very high and unrealistic returns.
CMA stressed the importance of verifying whether an investment firm is registered and regulated by checking the official CMA website and other authorized communication channels. The agency made it clear that it does not request any form of payment through WhatsApp or SMS messages.
“As you prepare to invest in money market funds or grow your money through the capital markets, take time to safeguard your hard-earned savings,” CMA stated.
They added, “The Capital Markets Authority advises all investors to be careful about scammers posing as licensed financial firms. Be alert, especially when someone promises extremely high returns with little or no risk. CMA never asks for any payments via WhatsApp or text messages.
Always confirm the legitimacy of a firm on our official platforms. If you’re unsure or have concerns, reach out to us directly through a direct message or email at complaints@cma.or.ke. Be wise with your money. Stay informed and alert!”
The warning comes at a time when more Kenyans are turning to Money Market Funds as a popular and accessible investment option. These funds have gained traction in recent years due to their relative safety and better returns compared to ordinary bank savings.
A Money Market Fund is a type of unit trust that pools investors’ money and is managed by a professional fund manager. It gives investors a secure way to grow their money while earning regular returns, often higher than what banks offer for savings accounts.
Just a week earlier, the CMA had published its Collective Investment Schemes (CIS) Quarterly Report. The report highlighted the top-performing Money Market Funds in the country based on total Assets Under Management (AUM).
According to the report, the CIC Money Market Fund had the largest AUM, standing at Ksh81.8 billion. This gave it a significant 25.6% share of the market. Coming in second was the Sanlam Money Market Fund with Ksh72.2 billion in AUM, representing 22.6% of the market share.
ICEA Lion Money Market Fund followed with Ksh20.1 billion, while ABSA Shilling Money Market Fund recorded Ksh19.2 billion.
Rounding out the top five was the Co-op Money Market Fund, which managed Ksh16.3 billion in AUM. The last three funds each held less than seven percent of the total market share.
Besides Money Market Funds, other types of investments held under unit trusts included fixed income funds, equity funds, balanced funds, and special funds. These funds also offer different risk and return profiles to suit various investor preferences.
The CMA continues to educate the public on smart investing and urges Kenyans to stay vigilant and only invest through registered, transparent, and reliable platforms.
Join Gen Z & Millennials New WhatsApp Channel To Stay Updated On time
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
