This archive report was first published on 31 October 2019.
On October 31, 2019, Nabo Capital, a wealth management firm owned by listed Centum, launched the Wanafunzi Investment Unit Trust Fund, a unit trust investment product targeting over 300,000 college and university students.
The product expects to raise Sh1.5 billion in the next three years by tapping into 'float' money that students mostly spend on mobile phone airtime, clothes, and partying.
Capital Markets Authority chief executive Paul Muthaura praised the initiative, saying it would help students nurture a savings culture early in life.
According to the Capital Markets Authority, individual and institutional investment schemes have placed Sh66.3 billion in collective unit trust schemes, an amount managed by asset managers.
Speaking at the launch, Muthaura said, 'We have created a mechanism that enables students to participate in national development moving them from being retail investors to being collective participants in the economy. It is a savings route that makes students part of the larger individual and retail investors who have placed Sh66.3 billion in unit trusts.'
Wanafunzi Initiative Unit Trust Fund chief executive Fredrick Ogola noted that a feasibility study showed students spent Sh89.6 billion annually in accessories, clothes, and airtime.
'Part of this should be directed to savings for future income,' Ogola said. 'To be in a position to save requires behavioural change. Young people should strive to contribute to the national development through saving and investment.'
Nabo Capital chief executive Pius Muchiri emphasized the need to create awareness among students on the importance of saving money in interest-earning financial products that will give them seed capital to start life as young adults.
