As the Kenyan economy enters a “constructive” phase in early 2026, with GDP growth projected between 5.2% and 5.5%, the investment landscape is undergoing a fundamental transformation. No longer content with generic savings, modern investors are pivoting toward what experts call “3rd Generation Investing”—a philosophy championed by NABO Capital that prioritizes “Investing with Purpose” over chasing raw, disconnected yields.
For the savvy Kenyan investor navigating this year’s stabilizing interest rate environment, the question is no longer just “where should I put my money?” but “which fund matches my 2026 goal?” At the heart of this decision lies the choice between two high-performing vehicles: the NABO Money Market Fund (MMF) and the NABO Fixed Income Fund.
Following a year of aggressive fiscal consolidation in 2025, the Central Bank of Kenya (CBK) has successfully anchored inflation within the 5.0% range. This stability has created a unique “Goldilocks” zone for local investors. With the Kenya Shilling trading steadily against the USD and liquidity conditions improving, institutional and retail savers alike are looking to lock in double-digit returns before potential rate easing later in the year.
“In a world of abundant information, the risk of overthinking leads to missed opportunities,” notes NABO Capital’s leadership. “Wealth isn’t built by those with the biggest salaries, but by those with the clearest plan.”
1. NABO Capital Money Market Fund: The “Safety Shield”
In 2026, the NABO KES Money Market Fund remains the premier choice for liquidity and capital preservation. Currently delivering a competitive gross return of 11.58% p.a., it serves as the essential foundation of a modern portfolio.
Why it’s the 2026 “Must-Have”:
-
High Liquidity: Funds are accessible within 24 to 48 hours, making it the perfect vehicle for emergency funds or “parking” capital while awaiting larger opportunities.
-
Compound Interest: Returns accrue daily and compound monthly, ensuring that even small, consistent contributions from young professionals or entrepreneurs grow at an accelerated pace.
-
Low-Risk Profile: By investing in high-quality, short-term instruments like Treasury Bills and commercial papers, NABO ensures your principal remains safe even during market shifts.
READ ALSO:
Top 10 Money Market Funds with High Returns in Kenya (2026 Guide)
2. NABO Fixed Income Fund: The “Milestone Engine”
For investors looking at a horizon beyond 12 months—such as saving for a home deposit, school fees, or business expansion—the NABO Fixed Income Fund is the superior growth engine. It currently boasts an impressive yield of 11.76% to 12.03% p.a.
The Strategic Edge:
-
Medium-Term Growth: This fund is optimized for a 1-to-3-year horizon, allowing fund managers to dive deeper into longer-tenor government and corporate bonds.
-
Predictable Outcomes: Unlike equity funds which may fluctuate, the Fixed Income Fund provides a stable path for those who want to “retire on their terms” or fund life’s big moments without the stress of volatility.
3. The Goal-Based Framework: Beyond the Yield
The true innovation at NABO Capital is the shift toward Goal-Based Investing. Instead of viewing an MMF or a Bond Fund as a standalone product, NABO encourages investors to segment their wealth based on life aspirations.
“Investing involves three things: the commitment of financial resources, an expected return, and a given level of risk. With clear goals, these risks become manageable,” says Moses Njuguna, Private Wealth Manager at NABO Capital.
4. Professional Management in a Digital Era
A key differentiator for NABO Capital is its “3rd Generation” approach to management. This isn’t just about spreadsheets; it’s about a focused, high-conviction strategy. The firm maintains a concentrated portfolio of high-quality holdings, overseen by a team that actively searches for underappreciated value across the African continent.
Furthermore, accessibility has been revolutionized. Through digital onboarding and partnerships like the Chumz App, Kenyans can now start their investment journey with modest amounts, tracking their performance in real-time through the NABO mobile app.
As Kenya’s private sector looks forward with cautious optimism, the path to financial freedom is clear: diversify, set a purpose, and choose regulated, high-performing vehicles. Whether you seek the “Safety Shield” of the Money Market Fund or the “Milestone Engine” of Fixed Income, NABO Capital provides the disciplined oversight required to thrive in 2026.