The Oak Special Fund is one of Kenya’s highest-returning special funds, but it is also one of the riskiest and most expensive, so it deserves a careful look. Run by Faida Investment Bank, the Oak Special Fund posted a 29.38% return in 2024 and around 19% in 2025, against a stated target of about 20% net a year. Those are eye-catching numbers, but they come with a 6% annual management fee, a KSh 500,000 minimum, a six-month lock-in, and the use of leverage. This review breaks down exactly how the Oak Special Fund works, what it has really earned, and who it suits.
Here is the short version. The Oak Special Fund is a leveraged, multi-asset fund for investors who have a large lump sum, can lock it away, and genuinely understand that big returns come with big swings. If you want steady, predictable income or your capital kept safe, this is not the fund for you. If you want aggressive growth and can stomach the risk, read on.
Table of Contents
Key takeaways
- The Oak Special Fund is a leveraged, multi-asset special fund from Faida Investment Bank, targeting about 20% net a year.
- It returned 29.38% in 2024 (its first full year) and roughly 19% in 2025, so past returns are strong but clearly not fixed.
- The minimum investment is KSh 500,000, with a six-month lock-in, making it a fund for lump-sum investors, not beginners.
- The management fee is 6% a year, notably higher than most funds, and the returns quoted are already net of that fee.
- It uses leverage and invests globally, which lifts returns in good years but deepens losses in bad ones.
Oak Special Fund returns: the real track record
Returns are the headline, so let us be precise. The Oak Special Fund launched in 2024 and came out swinging, then settled into a more normal range. These figures are as reported by the fund manager and independent coverage.
| Period | Reported return | Context |
|---|---|---|
| 2024 (full year) | 29.38% | An exceptional first year |
| 2025 (as of June, projected) | ~19.08% | Closer to the fund’s 20% target |
| Fund target | ~20% net p.a. | A target, not a guarantee |
The pattern is the real lesson. A fund that does 29% one year and 19% the next is behaving exactly as a growth-focused, leveraged fund should: capturing big gains when markets run, and delivering less in calmer stretches. The 2024 number was not a promise of 29% forever, and anyone selling the Oak Special Fund purely on that figure is misreading it. Judge it on its target and its consistency, not its best quarter.
What is the Oak Special Fund?
The Oak Special Fund is a collective investment scheme managed by Faida Investment Bank and licensed by the Capital Markets Authority as a special fund. A special fund is a category the regulator allows to invest far more freely than a money market or fixed income fund, and Oak takes full advantage of that freedom. It is a leveraged asset-allocation fund, meaning it can borrow to amplify positions and use derivatives to trade.
Where does your money go? The Oak Special Fund spreads capital across global and local markets. Internationally, it holds equities, exchange-traded funds, sovereign bonds, currencies, and precious metals like gold, silver and platinum, along with futures and options. Locally, it invests in government securities, Nairobi Securities Exchange shares, and commercial paper. That global reach is a genuine strength for diversification, but it also adds currency risk and complexity. For the wider picture, see our guide to the best special funds in Kenya.
Fees, minimum investment and the lock-in
This is where you need to read carefully, because the Oak Special Fund is not cheap or flexible. The minimum initial investment is KSh 500,000, with top-ups from KSh 50,000. That entry point alone tells you the fund is aimed at investors with a serious lump sum, not someone saving a few thousand shillings a month.
The management fee is 6% a year, charged and spread daily. On a KSh 1,000,000 investment, that is roughly KSh 60,000 a year, or about KSh 164 a day. This is high, well above what a money market or fixed income fund charges, and it is the single biggest thing to weigh against the returns. The good news is that the returns quoted above are already net of this fee, so what you see is closer to what you keep. There are no withdrawal fees, but your money is locked in for six months from the date you invest, so this must be cash you will not need in the short term.
Worked example: what KSh 1 million could have done
Numbers make the trade-offs concrete. According to the fund’s own projections, KSh 1,000,000 invested in the Oak Special Fund in January 2025 would have grown by about KSh 107,000 in six months, an absolute return near 10.7% for the half-year.
- At the 2024 return of 29.38%, KSh 1,000,000 would have grown to about KSh 1,293,800 in that year.
- At the softer 2025 pace of about 19%, the same KSh 1,000,000 would have grown to about KSh 1,190,000.
- By comparison, a top money market fund at about 10.5% net would have reached about KSh 1,105,000.
In a strong year the Oak Special Fund leaves cash-like funds far behind. But the same leverage that drove 29% can work in reverse, so a weak year could return far less, or dip below what you put in. If you want the calmer option instead, compare the best money market funds in Kenya or the best fixed income funds.
The risks you should weigh honestly
No fund with returns like these is low risk, and a fair review says so plainly.
Leverage cuts both ways. The Oak Special Fund borrows and uses derivatives to amplify returns. That boosts good years and deepens bad ones, which is the core trade you are accepting.
Your capital can fall. Because it holds equities, commodities and leveraged positions, the fund’s value can drop, and there is no guarantee you get back what you put in.
The high fee. A 6% annual fee is a heavy drag. In a year where the fund returns 10%, the fee has taken a large slice of the gross return to get there.
The lock-in and the minimum. KSh 500,000 tied up for at least six months is a big, illiquid commitment. Keep a separate emergency fund elsewhere so you are never forced to need this money early.
Currency risk. Its global holdings mean shifts in the shilling can help or hurt your returns on top of market moves.
Oak Special Fund vs Mansa X and Kuza Momentum
The Oak Special Fund does not exist alone. Its main rivals are Mansa X and the Kuza Momentum Fund, and each has a different flavour. Mansa X is the largest and has built a reputation for steadier, risk-managed returns using a long/short strategy, which you can read about in our Mansa X review. The Kuza Momentum Fund swings even harder than Oak, with a huge 2024 followed by a more modest 2025.
Oak sits at the aggressive, leveraged end of the group, with among the highest returns and the highest fee. There is no single winner here; the right pick depends on how much volatility you can handle and how much you mind the cost. To see how they rank on the latest numbers, check our roundup of the best performing special funds in Kenya.
How to invest in the Oak Special Fund
The process is straightforward once you have your lump sum ready. You open an account with Faida Investment Bank, choosing an individual, joint, or corporate account. You will need your ID or passport, KRA PIN, a passport photo, and a bank statement. You can start the process on the Oak Special Fund website, and money254 also publishes a helpful independent breakdown of the fund.
Once your account is open, you fund it and your money buys units in the Oak Special Fund. Remember the six-month lock-in starts from your deposit date, so plan your cash flow around it before you commit.
Who the Oak Special Fund is for
The Oak Special Fund is not a fund for everyone, and being honest about who it suits is more useful than hyping the returns. It fits an investor who has a lump sum of at least KSh 500,000 they can genuinely lock away for six months or longer, who already has an emergency fund and safer savings in place, and who understands that leverage means the value can fall as sharply as it can rise. For that investor, the Oak Special Fund can be a powerful growth engine within a wider portfolio.
It does not suit a beginner, anyone who might need the money soon, or someone who would lose sleep over a bad quarter. If that sounds like you, a money market fund or a fixed income fund will serve you far better. A sensible approach for those who do invest is to treat the Oak Special Fund as one aggressive slice of a balanced plan, never the whole thing, so a rough patch stings without derailing your finances.
Frequently asked questions
What return does the Oak Special Fund give?
The Oak Special Fund returned 29.38% in 2024 and roughly 19% in 2025, against a target of about 20% net a year. These are not fixed rates; they reflect the performance of the fund’s leveraged, multi-asset portfolio and can be lower or negative in a bad year. Always confirm the latest figure on the fund fact sheet.
What is the minimum investment for the Oak Special Fund?
The minimum initial investment is KSh 500,000, with top-ups from KSh 50,000. This makes it a fund for investors with a substantial lump sum rather than small monthly savers.
How much are the fees?
The Oak Special Fund charges a 6% annual management fee, spread daily. That is high compared with most funds, though the returns quoted are already net of it. There are no withdrawal fees.
Is there a lock-in period?
Yes. Your money is locked in for six months from the date you invest, so only invest funds you are sure you will not need in the short term.
Is the Oak Special Fund safe?
It is high risk. It uses leverage and derivatives, holds volatile assets, and does not guarantee your capital. It suits investors seeking aggressive growth who can accept large swings, not those who need a safe, predictable return.
Faida, which runs Oak, is one of several best stockbrokers in Kenya covered in our broker guide.
Disclaimer: The content on Sarafu is for educational and informational purposes only. It does not constitute financial, investment, or professional advice. Returns and figures mentioned are approximate and were sourced at the time of writing (2024 and 2025 reported returns), and they fluctuate constantly and can change quickly. Past performance is not a promise of future results. All investments carry risk; the value of your investment can go down as well as up, and you may receive back less than you invest, especially with a leveraged fund. Always do your own research, verify current figures on the fund fact sheet, and consider consulting a licensed financial advisor before making any decision.
