Britam, owned by Kenya's richest investors, eyes investors with fixed-income dollar fund

Omokolade Ajayi -
Key Points
  • Britam Holdings launches a USD-denominated fixed-income fund through Britam Asset Managers to meet rising demand for foreign currency investments in East Africa.
  • The fund requires a minimum investment of Ksh129,180 ($1,000) and targets dollar-denominated securities, including treasury bills and sovereign bonds.
  • Britam Holdings boasts prominent Kenyan investors, enhancing its influence in the regional financial services sector across insurance, banking, and real estate.

Britam Holdings, a leading financial services conglomerate partly owned by Kenya’s wealthiest investors, has rolled out a new USD-denominated fixed-income fund via its subsidiary, Britam Asset Managers, expanding its investment offerings to meet growing demand for foreign currency-based assets.

This strategic move aims to tap into the growing interest in dollar-denominated instruments, highlighting an increased appetite for hard currency investments both in Kenya and the broader East African market.

The fund, which sets a minimum entry threshold at Ksh129,180 ($1,000) and allows subsequent contributions starting at Ksh64,590 ($500), will invest in a diverse array of USD-denominated securities, including treasury bills, bank deposits, sovereign bonds, structured notes, and various money market products.

Britam leverages growing dollar demand

Britam’s latest fund launch aligns with a broader market trend favoring dollar-denominated investments, which have gained traction due to their perceived stability and liquidity. The company now joins other asset management firms, such as Jubilee Asset Management, in offering dollar-based funds to capitalize on growing investor interest.

According to the Capital Markets Authority (CMA), the value of assets under management in dollar-denominated funds surged by 260 percent between March 2023 and June 2024, reaching Ksh23.8 billion ($184.3 million) from Ksh6.6 billion ($51.1 million). Britam's new fund aims to appeal to investors with dollar-denominated expenses or those seeking protection against currency devaluation.

"The USD fixed-income fund offers a stable investment option in volatile times, providing liquidity and hard currency returns," said Britam Asset Managers CEO, Barack Obatsa. He added, "This product meets the rising demand for dollar-denominated investments, offering a secure and high-yielding opportunity for both local and international investors."

Britam strengthens position in Africa

Britam Holdings is backed by notable Kenyan investors, including James Mwangi, Peter Munga, Jimnah Mbaru, Benson Wairegi, and Jane Wanjiru Michuki. The group’s diverse portfolio spans insurance, asset management, banking, and real estate, reinforcing its position as a leading regional financial services provider.

In recent developments, Britam launched a pension scheme tailored for small and medium-sized enterprises (SMEs) and expanded benefits under its indemnity insurance plan for nurses and clinical officers.

The company has also announced plans to expand into the Democratic Republic of Congo (DRC) through the acquisition of an existing insurer. This strategic move is part of Britam's broader pan-African expansion strategy, aimed at mitigating sovereign risks and diversifying revenue streams.