According to the data released, 52.8 percent of total Sh76.1 billion in Assets Under Management (AUM) by licensed fund managers in Kenya is invested in Kenya Government securities.
If we dig deeper and look into AUM invested with banks through cash and time or fixed deposits we see a total of 29 percent of the total AUM invested with banks in 2019, 31.4 percent in 2019 and 29.7 percent in 2018.
Data from the CBK shows that banks hold 54.6 percent of total domestic debt.
Combined, 81.1 percent of total AUM was invested in both Government securities and bank deposits equivalent to Sh61.5 billion of the total Sh76.1 billion under management.
If we assume that a sizeable portion of the Sh22 billion is invested by banks in Government securities, the total AUM exposure stands at close to Sh70 billion and near 90 percent of total AUM.
