Special Funds With The Highest Returns in 2025

Several Special Funds operating in Kenya posted double-digit returns in 2025, significantly outperforming most passive investment products and highlighting a growing shift by investors away from low-yield savings options.

Data released by fund managers shows that some special funds delivered returns of over 20%, at a time when Money Market Fund (MMF) yields have fallen sharply from their 2024 highs. In 2025, MansaX Special Fund had the highest return of 20.74%.

 The strong performance of special funds has helped push total assets held in funds to Ksh137.8 billion as of September 30, 2025, underscoring their rising appeal among return-seeking investors.

Read more: Oak Special Fund: All You Need to Know About the Fund Offering Over 20% Net Returns

Here are some of the best-performing Special Funds in 2025 based on publicly declared annual returns:

1. Mansa Shilling Special Fund posted the highest return at 20.74%, managing an asset base of over Ksh107 billion.
2. Kuza Momentum Special Fund followed closely with a return of 20.62%.
3. Avorcap Almasi Fund delivered 20.51%.
4. Oak Special Fund posted an 18.99% return.
5. Mansa USD Special Fund returned 13.37%.
6. Britam Special Fixed Income Fund recorded a return of 9.94%.

Special Funds Now Control Over Ksh137 Billion

According to CMA data, assets under management in special funds stood at approximately Ksh137.8 billion by the end of September 2025. The market remains heavily concentrated, with the Mansa Shilling Special Fund controlling over 63% of total assets.

Other notable players include Mansa USD Special Fund (9.21% market share), Oak Special KES Fund (6.28%), Britam Special Fixed Income Fund / Madison Wealth Fund (4.81%), and NCBA KES Basket Note (3.79%).

Read more: Would You Rather Invest in a Special Fund or Buy Company Shares? [A Case of Ksh250K]

Why Special Funds Are Beating MMFs

Special funds and Money Market Funds are both collective investment schemes, meaning investors pool capital, which is then managed professionally. The difference lies in what the funds are allowed to invest in.

MMFs are restricted to short-term, low-risk instruments such as treasury bills, bank deposits, and commercial paper. Special Funds, however, operate under a much broader mandate, allowing exposure to local and global equities and rare metals such as gold. This flexibility has allowed special funds to deliver stronger returns in 2025.

The growing interest in special funds has been partly driven by declining MMF yields. After peaking at around 17% in 2024, the best-performing MMFs in 2025 returned roughly 9%, pushing investors to seek alternatives with higher upside.

At the same time, strong performance in equity markets boosted confidence in return-seeking assets. The Nairobi Securities Exchange (NSE), for instance, delivered a 52% return in dollar terms in 2025, ranking as the second-best performing market in Africa.

Risks Special Fund Investors Need to Consider

• Lock-in periods: Unlike MMFs, withdrawals are not always instant, as money is locked for a minimum of 6 months.
• Higher fees: Management and performance fees are significantly higher and are charged before returns are calculated, meaning investors may pay fees even in loss-making years.
• Risk exposure: Special funds carry medium to high risk, and returns can fluctuate widely depending on market conditions.

Special funds emerged as some of the best-performing investment vehicles in Kenya in 2025, offering returns that far exceeded traditional low-risk products. While the gains have been impressive, investors are advised to weigh the higher risks, fees, and reduced liquidity before committing capital.

Editor's Note: We know many of our readers are looking for opportunities that go beyond standard market returns. If you're interested in learning more about special funds from the fund managers directly, please fill your details here.