Investor compensation fund swells to Sh6.8bn
The Kenyan Investor Compensation Fund grew to Sh6.84 billion by June 2025, driven by interest income from government securities and transaction fees. The fund serves as a safety net for stock market investors in the event of brokerage failures.
Why it matters
The growth of the fund reflects increased stability and activity within the Nairobi capital markets.
The capital markets Investor Compensation Fund (ICF) grew by Sh1 billion to Sh6.84 billion in the year to June 2025, on higher income from government securities and transaction fees from trades at the Nairobi bourse.
The fund, which was established in 1995, compensates stock market investors for losses of up to Sh200,000 in the event of a failure of a licenced broker.
Disclosures by the Capital Markets Authority (CMA) in its 2024/2025 annual report show that the fund’s interest income from investments such as bonds and Treasury bills grew by 25 percent to Sh845.96 million in the period.
The interest income was the biggest source of new funds into the ICF in the year, ahead of transaction fees from trades at the Nairobi Securities Exchange (NSE) that grew to Sh195.2 million from Sh104.6 million in June 2024.
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