The best equity funds in Kenya give you a simple way to own a basket of Nairobi Securities Exchange shares, professionally managed, in a single investment. They aim for long-term growth rather than steady income, so they can rise strongly in a good year and fall in a bad one. This guide ranks the main equity funds by their latest returns, shows you what to look for beyond the headline number, and is honest about a key fact: in 2025 most equity funds actually trailed the wider market. Here are the best equity funds in Kenya and how to choose.
Table of Contents
Key takeaways
- Equity funds invest mainly in NSE-listed shares for long-term capital growth, with more risk than a money market fund.
- In 2025, reported equity fund returns ranged widely, from around 10% to over 22%.
- Honest note: the NSE 20 index rose about 56% in 2025, so most active equity funds trailed the market.
- Judge a fund on fees, consistency and what it holds, not just last year’s return.
- Educational only, not advice. Returns swing and figures date fast, so verify each fund’s current fact sheet.
The best equity funds in Kenya by 2025 return
| Equity fund | 2025 return (reported) |
|---|---|
| Arvocap Africa Equity | ~22.59% |
| NCBA Equity Fund | ~21.1% |
| Britam Equity Fund | ~18.8% |
| CIC Equity Fund | ~17.8% |
| African Alliance Equity | ~15.2% |
| ICEA Lion Equity Fund | ~10% |
The honest catch: most trailed the market
Those returns look healthy until you compare them with the market itself. The NSE 20 Share Index rose about 56% in 2025, yet the reported equity funds returned roughly 10% to 22%. In other words, most of the best equity funds in Kenya still lagged a simple index of the market. That is not unusual, active managers often trail in a strong bull run, but it is exactly why you should not chase last year’s winner blindly. A fund that beats its peers one year can lag the next.
What to look for beyond the return
The headline return is only the start. When comparing the best equity funds in Kenya, weigh these first.
- Fees. Equity funds charge higher management fees than money market funds. A high fee quietly eats years of returns, so compare the annual charge.
- Consistency. One great year means little. Look for a fund that performs reasonably across several years, not just a recent spike.
- What it holds. Some funds concentrate in a few big shares like Safaricom and the banks; others spread wider or invest across Africa. Know what you are actually buying.
- Minimums and access. Check the minimum investment and how easily you can withdraw, since equity funds are meant for the long term.
Who should invest in equity funds?
Equity funds suit investors with a long time horizon, at least five years, who want growth and can stomach the swings. If you might need the money soon, or a 20% drop would keep you awake, an equity fund is the wrong home for that cash. Many people build their safe base first in a money market fund, then add an equity fund for the growth portion. To see the difference clearly, read our equity fund vs money market fund comparison, and if you are new to the idea, start with our guide to what an equity fund is.
If you reinvest and hold for years, growth compounds. Our compound interest calculator shows how a long-term return builds, and for the calmer part of your money our money market fund calculator shows the after-tax return. For a specific equity fund we have reviewed, see the Arvocap Thamani Equity Fund, compare the riskier options in our best special funds guide, and fit it all together with our guide to building an investment portfolio. All funds are regulated by the Capital Markets Authority.
Frequently asked questions
Which is the best equity fund in Kenya?
There is no single best equity fund for everyone. By 2025 reported returns, the Arvocap and NCBA equity funds were among the strongest, but the right pick depends on fees, consistency and what the fund holds. Past performance is not a guide to the future, so compare current fact sheets before choosing.
Are equity funds a good investment in Kenya?
They can be, for long-term growth, if you accept the risk. Equity funds can beat safer options over many years, but they also fall in bad years and, as 2025 showed, often trail the index itself. They suit patient investors, not short-term savers.
What is the difference between an equity fund and a money market fund?
An equity fund invests in shares for long-term growth and can rise or fall sharply. A money market fund holds short-term, low-risk instruments, keeps your capital stable and pays a steadier return. Equity funds are for growth you can wait for; money market funds are for safety and access.
Individual equity fund reviews
Want the detail on a specific fund? We review the major Kenyan equity funds one by one, each with its latest return, fees and an honest verdict on who it suits:
- NCBA Equity Fund review
- Britam Equity Fund review
- CIC Equity Fund review
- ICEA Lion Equity Fund review
- Old Mutual Equity Fund review
Disclaimer: The content on Sarafu is for educational and informational purposes only and does not constitute financial or investment advice. Returns are as reported for 2025 and were sourced at the time of writing (August 2026); they are past performance, vary widely and change constantly. All investments carry risk; the value of an equity fund can go down as well as up, and you may get back less than you invest. Always verify current figures on each fund’s fact sheet and consider consulting a licensed financial advisor before investing.
