Cytonn Investment will officially launch its asset management division on March 11, 2019, following regulatory approval from the Capital Markets Authority (CMA) as a licensed Real Estate Investment Trust manager.
The new entity, Cytonn Asset Managers, will expand the firm’s existing Sh21 billion asset management portfolio while targeting Sh1.2 trillion in retirement benefit scheme assets to drive growth.
Edwin Dande, CEO of Cytonn, stated the division will focus on high-yield investments like bond funds, equities, and real estate, which have delivered 18% annual returns to clients. He emphasized plans to digitize money market access, enabling clients to manage funds via digital devices.
Dande highlighted gaps in fund manager expertise, noting many investors face suboptimal risk-adjusted returns. The firm aims to broaden access to alternative investments previously limited to private markets, while also advancing unit trust fund digitization by year-end.
Victor Odendo, Cytonn’s head of Unit Trusts, noted inadequate asset managers have hindered property market growth, with pension scheme returns fluctuating between 5-9% annually. He emphasized regulatory oversight as a key advantage of professional asset management.
Cytonn plans to expand its operations to major Kenyan cities including Mombasa, Kisumu, and Eldoret to strengthen market penetration.
