More Kenyans are moving their savings into dollar-denominated investments, with new figures showing the pace at which the shift is taking place.

🇰🇪 Breaking It Down

According to the Capital Markets Authority (CMA), investments in foreign currency-denominated funds grew by Ksh15 billion in three months, reaching Ksh110.5 billion by June 2026, equivalent to about USD856 million.

The figure represents a 15 per cent increase from Ksh95.9 billion in March and a more than 16-fold rise from Ksh6.6 billion recorded in March 2023.

The number of investors in collective investment schemes also rose by 68 per cent year-on-year, from 2.5 million in June 2025 to about 4.1 million in June 2026.

📌 What You Need to Know

By June, there were 47 foreign currency funds on the market, comprising 45 dollar funds, 1 pound fund, and 1 rand fund, according to the CMA.

Kenyans are accessing dollar-denominated investments through Money Market Funds (MMFs) offered by local managers, which pool savings into short-term instruments. Presently, over 2.5 million Kenyans have invested in MMFs, with total MMF assets reaching approximately Ksh460 billion as of mid-2026.

This is attributed to the rise in the number of regulated online forex and digital trading platforms, which reported a total of 152,110 active client accounts, representing a 46.2 per cent increase in active file counts. Kenyan investors are also shifting toward liquid global assets and overseas brokerages to hedge against currency depreciation and pursue higher returns. Sophisticated traders use Interactive Brokers, while local fintech platforms facilitate the investments.

Meanwhile, CMA-regulated online forex brokers also provide leveraged contracts-for-difference trading, giving Kenyan retail clients regulated access to global indices, commodities, and currency pairs beyond traditional local investment options.

The growing shift toward dollar-denominated assets can increase local foreign-currency availability as investors convert shillings, thereby supporting demand for the Kenyan currency in the short term.

However, experts warn that the large-scale conversion of investment proceeds back into dollars can create pressure on foreign exchange reserves, particularly when many investors repatriate funds simultaneously.

📰 Source: Kenyans.co.ke