Students’ Unit Trust Fund Launched in Kenya, Plans to Raise KSh 1.5 Billion in Three Years

David Indeje is Khusoko’s Digital Editor, covering East African markets.
Students' Unit Trust Fund Launched in Kenya

Dr Fred Ogola , CEO Wanafunzi Investment Unit Trust Fund

Wanafunzi Investment Unit Trust Fund, an exclusively student’s backed unit trust fund in Kenya, aims to raise KSh1.5 billion in the next three years.

Subscribers will expect an average rate of return of approximately 8.4% and can liquidate their investment after 4 year or earlier on demand.

The Fund is regulated by Capital Markets Authority, managed by Nabo Capital with KCB Group as the Custodian bank.

Wanafunzi Initiative Unit Trust Fund chief executive Fredrick Ogola said a feasibility study showed students spent KSh89.6 billion annually in accessories, clothes and airtime,

“Part of this should be directed to savings for future income. To be in a position to save requires behavioural change. Young people should strive to contribute to the national development through saving and investment,” he said.

Wanafunzi Investment is an initiative aimed at building an early culture of savings among students in institutions of higher learning through a student’s friendly platform that will enable them to save and lay an early foundation for assets’ growth, which is key for economic and social transformation.

Paul Muthaura, CEO Capital Markets Authority said,” We have created a mechanism to move students from being retail investors to being collective participants in the economy.

This tool gives a route to be part of the Ksh.66.3 billion assets under management that makes up collective investment scheme sector in Kenya, and much more critically to be part of KSh.2.3 trillion institutional assets under management that are in Kenya.”

Pius Muchiri, the CEO Nabo Capital emphasised the need of students graduating with financial capabilities and skills, beyond certificates to help them live independent of their parents.

This investment platform will further promote financial literacy through capacity building programs aimed at entrepreneurial and management skills.

This platform enables students to leverage on skills and capacity of experienced fund managers to make investment decisions, hedging against the volatility they would suffer as direct investors.

David Indeje is Khusoko’s Digital Editor, covering East African markets.

In my role as Community Engagement Editor For Khusoko, I care about our audience. engaging them, getting news delivered to them across a variety of platforms, and expanding the diversity of voices on our website.

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