KCB Group Transfers Fund Management Role to KCB Investment Bank Under Wealth Unit Reorganization

KCB Group is reorganizing its fund management business by transferring the management of the KCB Unit Trust Scheme from KCB Asset Management Limited to KCB Investment Bank Limited as the lender consolidates its collective investment products under a single wealth management structure.

The restructuring will see KCB Investment Bank Limited replace KCB Asset Management Limited as the officially designated and licensed Fund Manager for the KCB Unit Trust Scheme, subject to approval by the Capital Markets Authority.

The move centralizes the group’s retail collective investment schemes, including the KCB Money Market Fund, within a unified investment and wealth management framework as KCB Group continues restructuring its financial services subsidiaries.

The transition builds on an earlier separation within the group where KCB Capital was rebranded to KCB Investment Bank Limited to focus on wealth management, advisory services, brokerage, and investment distribution, while the former National Bank unit NTISL was converted into KCB Asset Management Limited with a focus on pension management, trustee services, and institutional fund structures.

KCB Investment Bank Takes Over Unit Trust Scheme

Under the restructuring, KCB Investment Bank Limited becomes the primary retail investment products unit within the group and assumes oversight of the KCB Unit Trust Scheme.

The entity will oversee wealth management operations, brokerage services, investment advisory, and collective investment distribution under a single structure. The transfer also shifts regulatory governance responsibilities for the retail investment schemes to the investment banking subsidiary under the supervision of the Capital Markets Authority.

At the same time, KCB Asset Management Limited will exit retail fund management responsibilities and focus on corporate trusteeships, institutional pension fund management, and specialized fund structuring services.

The consolidation also includes the integration of internal administrative systems, reporting structures, and auditing processes into a centralized wealth management platform aimed at reducing duplication across subsidiaries.

What Remains Unchanged for Investors

Despite the structural changes behind the scenes, KCB Group said the transition will maintain operational continuity for investors using the KCB Unit Trust Scheme and associated money market products.

Existing KCB Money Market Fund structures, including both Kenya Shilling and US Dollar-denominated classes, will retain their current investment mandates, risk profiles, and operational structures.

Investor holdings, unit balances, accumulated returns, account histories, and account numbers will remain unchanged, with no requirement for clients to liquidate positions or manually migrate accounts.

Third-party fiduciary arrangements also remain intact. Co-operative Bank of Kenya will continue serving as the Corporate Trustee for the funds, while National Bank of Kenya remains the Custodian bank.

KCB Group added that retail transaction channels, including internet banking platforms, mobile banking applications, USSD services, and branch banking infrastructure, will continue operating without interruption throughout the transition process.

The lender said the restructuring does not alter the ownership structure of the investment products, with ultimate governance and capital support remaining under KCB Group.