From (L) Britam Holdings Plc Group Managing Director and CEO, Tom Gitogo; Britam Asset Managers Head of Business Development, Concepta Ayuma; and Britam Asset Managers CEO, Barack Obatsa. Photo/courtesy.
Kenyan parents are being encouraged to start investing for their children earlier as Britam Asset Managers launches a new investment account designed to give young people a longer runway to build wealth.
The new product, KidNest, allows parents and guardians to begin investing for their children with contributions from as little as Sh1,000. The funds are professionally managed and are intended to grow over the long term as children approach major financial milestones in adulthood.
Britam Asset Managers says the product is designed around the advantage children have over adult investors, which is time. Starting early gives investments more opportunity to benefit from consistent contributions and compound growth.
Speaking during the launch in Nairobi, Britam Group Managing Director and CEO Tom Gitogo said developing an investment culture among children could help shape their financial habits later in life.
“The greatest advantage any investor has is time. Our job is not only to serve today’s investor, but also to shape who tomorrow’s investor will be. Today’s children are tomorrow’s wealth creators and giving them an early start can help build the financial habits and foundations they will carry into adulthood,” said Gitogo.
The launch comes against a backdrop of declining household saving levels in Kenya. Data from the 2024 FinAccess Household Survey shows that the proportion of adults who save fell from 74 percent in 2021 to 68.1 percent in 2024.
The survey also found that only 18.3 percent of Kenyan adults were financially healthy, highlighting challenges around financial planning and household resilience.
Financial literacy remains another concern. Although formal financial access increased from 83.7 percent in 2021 to 84.8 percent in 2024, only 42.1 percent of Kenyans demonstrated high financial literacy based on knowledge of concepts such as inflation, interest rates and risk diversification.
Britam Asset Managers CEO and Principal Officer Barack Obatsa said the new product is intended to make investing part of everyday financial planning for Kenyan families.
“At Britam Asset Managers, we are focused on making professionally managed investments more accessible, understandable and relevant to more Kenyans at every stage of their wealth journey. KidNest extends that commitment to the earliest stage of life, enabling families to make a child’s first investment from Sh1,000,” said Obatsa.
He said starting early could help children develop a long-term approach to investing as they benefit from consistent contributions and the effects of compounding.
“By giving children the benefit of time, consistency and compounding, we are not only helping build a financial nest egg for their future but also nurturing a generation that sees investing as a lifelong habit rather than something to start later in life,” he added.
The launch expands Britam Asset Managers’ range of professionally managed investment products as the company seeks to deepen participation in Kenya’s investment market.
The fund manager currently has more than Sh250 billion in assets under management, positioning it among the country’s major players in the investment management industry.
KidNest is positioned to support long-term financial goals for children while encouraging parents and guardians to introduce investment planning earlier in a child’s life.
