Investment Regulations & Policies

Investment Regulations & Policies

Item Categories of Assets Maximum percentage of aggregate market value of total assets of scheme or
pooled fund
1 Cash and Demand Deposits in institutions licensed under the
Banking Act of the Republic of Kenya.
5%
2 Fixed Deposits. Time Deposits and Certificate of Deposits in institutions licensed under the Banking Act of the Republic of Kenya. 30%
3 Listed Corporate Bonds, Mortgage Bonds and Fixed Income Instruments; loan stocks approved by the Capital Markets
Authority; collective investment schemes incorporated in Kenya and approved by the Capital Markets Authority reflecting this category; and global depository receipts.
20%
4 Commercial Paper. Nonlisted bonds and other debt instruments issued by private companies provided that the bond or the instrument has been given investment-grade rating by a credit rating agency registered by the Capital Markets Authority, and collective investment schemes incorporated in Kenya and
approved by the Capital Markets Authority reflecting this category.
10%
5 East African Community Government Securities and infrastructure bonds issued by public institutions and collective investment schemes incorporated in East African Community
(EAC) and approved by an EAC Capital Markets regulator reflecting this category.
90% , or 100%in the case of scheme
receiving statutory contributions
6 Preference shares and ordinary shares of companies listed in a securities
exchange in the East African Community and collective investment schemes
incorporated in Kenya and approved by the Capital Markets Authority reflecting
this category; Exchange Traded Funds: and global depositary receipts.
70%
7 Unlisted shares and equity instruments of companies incorporated in Kenya and
collective investment schemes incorporated in Kenya and approved by the Capital Markets Authority reflecting this category.
5%
8 Offshore investments in bank deposits government securities, listed equities
and rated Corporate Bonds and offshore collective investment schemes
reflecting these assets.
15%
9 Immovable property in Kenya. 30%
10 Guaranteed Funds. 100%
11 All exchange traded derivatives contracts approved by the Capital Markets Authority. 5%
12 All listed Real Estate Investment Trusts incorporated in Kenya and approved by
the Capital Markets Authority.
30%
13 Private Equity & Venture Capital. 10%
14 Debt instruments for the financing of 10% infrastructure or affordable housing projects approved under the Public Private Partnerships Act, 2013 or as may be prescribed by the Cabinet
Secretary responsible for matters relating to housing.
10%
15 Any other assets. 10%

Made on the 8th June, 2016

UKUR YATANI,
Cabinet Secretary for the National Treasury

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