How to Invest in Index Funds in Kenya.
- Ndovu
- 7 days ago
- 3 min read

Investing in index funds is one of the smartest and most accessible ways to grow your wealth over time. For Kenyan investors, the opportunity to tap into global and regional markets through index funds and ETFs (Exchange-Traded Funds) has never been more convenient. In this guide, we’ll explore how to invest in index funds in Kenya, the benefits of low-cost investing, and how platforms like Ndovu make it easy to get started.
What Are Index Funds?
Index funds are investment vehicles that track the performance of a specific market index, such as the S&P 500, MSCI World, or NSE 20. Instead of trying to beat the market, they aim to mirror it. This passive investing approach reduces costs and historically performs better than most actively managed funds.
Index funds can come in two forms:
Mutual funds: Pooled investments managed by an institution.
ETFs (Exchange-Traded Funds): Index-tracking funds traded on stock exchanges like shares.
How to Invest in Index Funds in Kenya
Until recently, investing in global index funds or ETFs was limited to high-net-worth individuals or institutions. Today, Kenyan retail investors can access global markets easily and affordably through digital platforms like Ndovu.
Step-by-Step Guide:
Choose a Licensed Investment PlatformNdovu is a Capital Markets Authority (CMA)-regulated investment platform that allows Kenyans to invest in both local and international index funds with ease. You can start with as little as KES 5,000.
Create and Verify Your Account Sign up online or via the Ndovu app. You'll need your ID or passport, KRA PIN, and proof of address for verification.
Fund Your Wallet Use M-PESA or bank transfer to add funds to your Ndovu wallet.
Select Your Investment StrategyNdovu offers curated portfolios that include global ETFs. For example:
Ndovu Gold Fund Invests in the Aberdeen Standard Physical Gold Shares ETF (SGOL), which tracks the price of physical gold. This fund is ideal for investors looking to hedge against inflation or diversify their portfolio with a tangible asset class.
S&P 500 Portfolio Gain exposure to 500 of the largest companies in the U.S. through the iShares Core S&P 500 ETF (IVV). This fund is designed to mirror the performance of the S&P 500 index, offering long-term growth and broad diversification in the U.S. equity market.
Shariah-Compliant Portfolio Aligned with Islamic investing principles, this portfolio includes the Wahed FTSE USA Shariah ETF, which screens for halal U.S. companies, excluding industries like alcohol, gambling, and interest-based finance.
The Techie Fund Invests in the Vanguard Information Technology ETF (VGT), providing access to top global tech giants such as Apple, Microsoft, and NVIDIA. Perfect for investors seeking growth in the technology sector.
Monitor and Adjust Your Portfolio Ndovu provides regular performance reports and advice on staying the course through market ups and downs.
Why Choose Index Funds and ETFs?
If you’re wondering how to invest in ETFs in Kenya with minimal risk and maximum diversification, index funds offer several advantages:
Diversification
One index fund can give you exposure to hundreds or even thousands of companies across sectors and countries.
Strong Long-Term Returns
Global data shows that index funds often outperform actively managed funds over 10+ years.
Accessibility via Ndovu
By giving Kenyans access to invest in global ETFs starting at just KES 5,000, Ndovu has eliminated traditional barriers like high minimums and lack of global access.
Final Thoughts
Learning how to invest in index funds in Kenya is a crucial step toward financial independence. Whether you’re a beginner or looking to diversify, platforms like Ndovu make it seamless, affordable, and transparent. Explore the ETFs Ndovu offers access to today and take control of your financial future.
Disclosure:
Ndovu is a regulated Robo-advisory platform operated by Ndovu Wealth Limited (‘NWL’). NWL is a Fund Manager licensed by the Capital Markets Authority (Kenya).
The information provided on this platform and the products and services offered are intended solely for persons in regions and jurisdictions where such distribution and utilization are in accordance with local laws and regulations. Ndovu does not promote its services in regions where it lacks the necessary licenses; It is exclusively available to persons residing in countries where it holds a valid license or has regulated partners. Ndovu does not extend its services to citizens of the United States, Canada, Japan, and other restricted territories.
Disclaimer:
All ETF products are subject to risk, including country/regional, liquidity, and currency risks. Market prices of securities within the ETF may rise and fall, sometimes rapidly and unpredictably.
While ETFs provide diversification through exposure to a basket of securities, they do not eliminate the risk of loss. Diversification does not ensure a profit or protect against a loss. These are non-cis products and are registered by the SEC.
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