Kenyan investment bank SIB Najah is introducing three additional asset classes to its Shariah compliant Mansa-X Shariah Special Fund in Q2 2025, with a view of adding more in the future.
“So far, we have nine asset classes within our existing fund and will be adding Islamic commercial papers, Islamic real estate investment trusts (REITs) and Islamic hedging instruments,” Abdullahi Omar Adan, an executive director at SIB Najah, told IFN Investor.
The nine asset classes within the Mansa-X Shariah Special Fund include Islamic private equity, Sukuk, commodities and Islamic exchange-traded funds.
The equity asset class has already performed a couple of transactions, and SIB Najah plans to delve boost returns potential during volatile market conditions.
The investment bank is working on more Shariah compliant asset classes for Q3 2025 and hopes to secure regulatory approval for these as well.
Among the challenges faced by funds in Kenya when expanding on asset classes is the level of research and technical know-how required of their managers since some of the asset classes may have not been tested within the Shariah space.
A lack of expertise in Shariah compliant investments has also hindered progress.
The asset manager has to sometimes look for opportunities within and outside of the Kenyan Shariah market to crafting a mixed basket of investments. “So, it takes us a lot of time before adding new asset classes into our fund”, explained Abdullahi.
Since conventional funds have between 14 and 15 asset classes within a fund, those in the Shariah space often expand their offerings as well to stay competitive. By widening content, they also provide more diversification opportunity and higher return potential for investors, especially in current volatile global equity conditions.
The investment bank is also looking at investing into Shariah compliant businesses, including real estate companies and suppliers contracted with the government. “We are collaborating with other banks to support these investments by providing capital to service contracts, ensuring returns,” Abdullahi said.
Working with other banks also gives SIB Najah leverage for future opportunities though it had to be cautious in maintaining client confidentiality when discussing such collaborations.
