A new due diligence review by financial analyst Peter Ndue has raised fresh questions about the Oak Special Fund, urging investors to avoid relying solely on the fund's reported performance until several concerns are addressed by Faida Investment Bank (FIB Kenya).

The two page report, dated July 29, 2026, says the review relied on the fund's available fact sheets and its FY2025 audited financial statements. Ndue says he did not find evidence that the reported returns are false. His concern is that several issues make it difficult for investors to independently verify how those returns were achieved and the risks involved.

The report lists seven areas that investors should examine before committing any money.

The first issue is what Ndue describes as a significant difference between the values reported by the fund's independent custodian and the figures contained in the audited financial statements.

According to the report, I&M Bank, which serves as custodian, reported holdings worth about KES 11.34 billion for the Kenya Shilling fund and USD 1.95 million for the Dollar fund as at December 31, 2025.

The audited financial statements, on the other hand, reported total assets of approximately KES 11.43 billion for the Kenya Shilling fund and USD 1.43 million for the Dollar fund.

Ndue says the difference amounts to roughly KES 91.3 million for the Kenya Shilling fund and about USD 522,600, or around 36.7 percent, for the Dollar fund. He argues these differences should be fully reconciled before investors rely on the reported net asset values.

The second issue concerns valuation.

Ndue says the financial statements do not provide enough information on how certain investments, particularly over the counter derivatives and manager priced instruments, are valued.

Without that information, he argues investors cannot independently determine whether the reported asset values fairly reflect market prices.

The third concern relates to related party investments.

The report says the audited financial statements disclose that approximately KES 675 million, representing around 0.6 percent of total investments, was invested directly in the Oak Special Fund through related investment structures.

Ndue argues investors should receive more information about these relationships, how conflicts are managed and whether exposure limits are being observed.

The fourth issue focuses on reporting quality.

The report says investors should be concerned if audited reports and fund documents contain drafting mistakes, inconsistent figures or conflicting narratives because such errors can reduce confidence in the accuracy of the disclosures.

The fifth concern is transparency.

Ndue says investors are not given enough information about individual holdings, counterparties, security level exposures and performance drivers.

Without that detail, he argues investors cannot independently verify where returns came from or properly assess concentration and liquidity risks.

The sixth issue is performance.

According to the report, the Kenya Shilling fund has underperformed its own disclosed blended benchmark.

Ndue argues that if the fund is taking additional investment risks while still lagging behind its benchmark, investors deserve a clear explanation of why this happened and whether those risks are justified.

The final concern relates to the Dollar fund.

The report says the fund appears to maintain a significant allocation in cash and cash equivalent investments.

Ndue argues investors should be told whether that cash position is temporary or part of a long term strategy and how the fund expects to generate returns above ordinary cash yields.

Despite raising these concerns, Ndue makes it clear that his report does not accuse the Oak Special Fund or Faida Investment Bank of fraud or misconduct.

Instead, he says the unresolved questions make it difficult for investors to independently verify the fund's reported risk adjusted performance.

His recommendation is that investors should hold off on allocating capital until the identified issues are clarified and supported by additional disclosures and reconciliation from the fund manager.

At the time of publication, these findings represent the analyst's assessment based on publicly available fund documents. They are not findings by a court or regulator, and Faida Investment Bank may respond to or dispute the conclusions contained in the report.