04/09/2026
Best Performing Fixed Income Funds As at 31st August 2026 ➖ (14 Funds Analyzed)
If you invested Ksh 30,000 every month in a good Fixed Income Fund earning an average 12% net annual return for the next 15 years, with contributions made at the beginning of each month...
You would have approximately Ksh 15,137,280.
You contributed only Ksh 5.4 million.
The remaining Ksh 9,737,280 is wealth created through the power of compounding!
This is why Fixed Income Funds (FIFs) remain one of the most overlooked investment opportunities in Kenya.
Everyone talks about Money Market Funds.
Very few people talk about FIFs.
Yet FIFs continue to quietly deliver impressive returns.
As at 31st August 2026, 5 of the 14 funds analyzed delivered net returns above 10% after tax.
The biggest difference?
MMFs mainly invest in short-term securities, while FIFs can invest across both short- and long-term fixed-income assets, including Treasury Bills, Treasury Bonds, Corporate Bonds and other approved securities.
Here Are The Top Fixed Income Funds — After Tax:
1️⃣ Arvocap Almasi Fund ➖ 16.08%
2️⃣ Lofty-Corban Bond Fund ➖ 11.55%
3️⃣ Etica Fixed Income Fund ➖ 11.19%
4️⃣ Sanlam Fixed Income Fund ➖ 11.18%
5️⃣ Zimele Fixed Income Fund ➖ 11.14%
Key Insights:
The average after-tax return across all 14 funds now stands at 9.99%, down from 10.49% in July.
The average gross market yield also declined from 12.34% to 11.88%.
Top 3 Gainers
✔️ Arvocap Almasi: +1.53% (19.11% → 20.64%)
✔️ Co-op Bond Fund: +1.02% (10.34% → 11.36%)
✔️ Zimele Fixed Income Fund: +0.92% (12.18% → 13.10%)
Biggest Decliners
🔻 Sanlam Fixed Income Fund: -2.68% (15.84% → 13.15%)
🔻 Nabo Fixed Income Fund: -2.51% (12.84% → 10.33%)
🔻 ICEA Fixed Income Fund: -2.39% (13.47% → 11.08%)
Macroeconomic Update
📈 Inflation: 6.5% → 6.6%
Treasury Bill yields remained relatively stable:
🔸 91-Day: 8.79% → 8.77%
🔸 182-Day: 8.95% → 8.94%
🔸 364-Day: 9.02% → 9.03%
👉 CBR remained unchanged at 8.75%.
What Does This Mean?
Your money must do more than simply grow.
It Must Grow Faster Than Inflation.
If your investment consistently earns below inflation, your purchasing power is quietly being destroyed.
A well-selected FIF can be suitable for:
✔️ Children's Education
✔️ Home Purchase or Construction
✔️ Car Purchase
✔️ Retirement Planning
✔️ Financial Freedom Portfolio
✔️ Business Expansion
✔️ Wedding Fund
✔️ Medium- to long-term wealth accumulation
The Secret Move
Many investors automatically default to Money Market Funds.
But look deeper.
The best-performing FIF delivered 16.08% net after tax, while the average across the 14 funds was 9.99%.
That is why you don't just choose an investment because it is popular.
You choose it because it fits your goal, risk profile, liquidity needs and expected return.
📲 WhatsApp me "BEST FIF" on 0703472299, and I'll share my favourite Fixed Income Funds.
Your Turn...
👇 Do you already have a Fixed Income Fund account?
➿➿
➖ Alex Mwangi | The Cent Warrior | 📲 WhatsApp: 0703472299