Banks help dollar MMFs unlock Eurobond returns

Dollar-denominated money market funds (MMFs) are bypassing regulatory restrictions by investing in African and global Eurobonds through credit-linked notes structured by multinational banks such as Standard Chartered, Stanbic, and Absa. These banks hold the Eurobonds and issue one-year notes with guaranteed returns, allowing MMFs to earn yields of 8-12% without breaching maturity rules. Portfolio manager Dorcas Mwangi (Jubilee Asset Management) says these products expand the investment universe while maintaining attractive returns. Assets under management of Kenyan collective investment schemes reached Sh851.7 billion in March 2026, up from Sh111 billion five years earlier.