Speaking during the launch, Wanafunzi Initiative Unit Trust Fund CEO Dr. Fredrick Ogola said; “Research shows that students have spent a total of Ksh.89.6 billion in accessories, clothes and airtime, part of which should be directed to savings for future income. To be in a position to save requires behavioural change. Young people should strive to contribute to the national development through saving and investment.”
The fund is regulated by Capital Markets Authority, managed by Nabo Capital with KCB Group as the Custodian bank.
Through a mix of awareness campaigns across all universities and colleges in Kenya, the students will be sensitised and open investments accounts in the unit trust and consistently save by dialling *483*004#.
Paul Muthaura, CEO Capital Markets Authority said,” We have created a mechanism to move students from being retail investors to being collective participants in the economy. This tool gives a route to be part of the Ksh.66.3 billion assets under management that makes up collective investment scheme sector in Kenya, and much more critically to be part of KSh.2.3 trillion institutional assets under management that are in Kenya. At the Capital Markets Authority we see this as a potential game changer in creating an avenue through which youth have a mechanism through which they can participating not only in saving but also in investing in the economy.”
Wanafunzi Investment Unit Trust Fund targets to raise Ksh.1.5 billion in the next 3 years. The subscribers will expect an average rate of return of approximately 8.4% and they can liquidate their investment after 4 year or earlier on demand.
“We need to create awareness in our society about savings. I’m very excited about the board of trustee when the decided that it is not all about saving but also capacity building and nurtured financial responsibilities. I’m where I’m because of what I saved at my youthful life.” said Higher Education Loans Board chair Dr Ekwe Ethuro.