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140+ Free KASNEB CIFA Intermediate Practice Questions

Pass your KASNEB Certified Investment and Financial Analysts (CIFA) — Intermediate Level exam on the first try — instant access, no signup required.

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KASNEB CIFA Advanced Level

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2026 Statistics

Key Facts: KASNEB CIFA Intermediate Exam

50%

Minimum Pass Mark Per Paper

KASNEB Examination Regulations

Kshs 2,400

Intermediate Paper Examination Fee

KASNEB Fee Structures

5 papers

Intermediate Level Papers (CF21–CF25)

KASNEB Qualifications Booklet

3 hours

Official Paper Duration

KASNEB Examination Timetable

C+

Minimum KCSE Mean Grade for CIFA Entry

KASNEB CIFA Programme

16%

Standard VAT Rate in Kenya

Kenya VAT Act

KASNEB CIFA Intermediate covers five papers — portfolio management, financial analysis, equity investments, corporate finance, and public finance and taxation. Register with KASNEB, book each paper for Kshs 2,400, and pass with at least 50% at April, August, or December sittings after completing foundation level.

Sample KASNEB CIFA Intermediate Practice Questions

Try these sample questions to test your KASNEB CIFA Intermediate exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 140+ question experience with AI tutoring.

1In modern portfolio theory, the efficient frontier represents portfolios that offer:
A.The highest expected return for a given level of risk, or the lowest risk for a given return
B.The maximum possible return regardless of risk tolerance
C.Portfolios with zero correlation between all asset classes
D.Only government securities with no default risk
Explanation: The efficient frontier plots optimal portfolios where no other portfolio offers higher return at the same risk, or lower risk at the same return. Investors choose a point on the frontier consistent with their risk tolerance.
2According to the Capital Asset Pricing Model (CAPM), the expected return on a security equals:
A.Risk-free rate plus beta times the market risk premium
B.Risk-free rate plus the security's standard deviation
C.Market return minus the risk-free rate only
D.Beta divided by the market risk premium
Explanation: CAPM states E(Ri) = Rf + βi(E(Rm) − Rf). Beta measures systematic risk relative to the market; the market risk premium compensates investors for bearing non-diversifiable risk.
3An Investment Policy Statement (IPS) for a client is used to:
A.Document objectives, constraints, and guidelines that govern portfolio decisions
B.Guarantee a minimum annual return regardless of market conditions
C.Replace the need for ongoing portfolio monitoring and rebalancing
D.Select individual stocks without reference to risk tolerance
Explanation: The IPS records return objectives, risk tolerance, time horizon, liquidity needs, tax considerations, and unique circumstances. It provides the framework within which portfolio managers make asset allocation and security selection decisions.
4Diversification across asset classes with low or negative correlation mainly reduces:
A.Unsystematic (idiosyncratic) risk
B.Systematic (market) risk
C.Inflation risk exclusively
D.Political risk in a single jurisdiction
Explanation: Diversification spreads firm- or sector-specific risk across many holdings. Systematic risk affects the whole market and cannot be eliminated through diversification alone.
5The Sharpe ratio measures portfolio performance by relating:
A.Excess return over the risk-free rate to total volatility
B.Alpha to beta relative to a benchmark
C.Dividend yield to price-to-book ratio
D.Tracking error to information ratio
Explanation: Sharpe ratio = (Rp − Rf) / σp. It shows reward per unit of total risk. Higher values indicate better risk-adjusted performance when comparing portfolios.
6Strategic asset allocation differs from tactical asset allocation because strategic allocation:
A.Sets long-term target weights based on IPS objectives and is rebalanced periodically
B.Attempts to exploit short-term market mispricings without long-term targets
C.Invests entirely in cash during market downturns
D.Eliminates the need for risk profiling
Explanation: Strategic asset allocation establishes policy weights aligned with long-term goals. Tactical allocation makes short-term deviations around those weights to capture perceived opportunities, within IPS limits.
7A portfolio with a beta of 1.2 is expected to:
A.Be 20% more volatile than the market on average
B.Earn exactly 20% more return than the risk-free rate
C.Have zero correlation with the market index
D.Carry no systematic risk
Explanation: Beta measures sensitivity to market movements. A beta of 1.2 implies the security or portfolio tends to move 20% more than the market in the same direction, indicating higher systematic risk.
8Rebalancing a portfolio back to strategic weights is justified when:
A.Drift from target allocation exceeds IPS tolerance bands
B.A single security has risen sharply in price
C.The manager wants to avoid all transaction costs indefinitely
D.The client requests maximum concentration in one sector
Explanation: IPS rebalancing rules trigger when actual weights drift beyond preset bands, restoring risk exposure to policy levels. This enforces discipline and controls unintended risk concentration.
9The Treynor ratio differs from the Sharpe ratio because Treynor uses:
A.Beta (systematic risk) in the denominator instead of total standard deviation
B.Only dividend income in the numerator
C.Tracking error instead of excess return
D.The risk-free rate as the denominator
Explanation: Treynor ratio = (Rp − Rf) / βp. It measures excess return per unit of systematic risk, useful when comparing well-diversified portfolios where total risk approximates systematic risk.
10Behavioral finance suggests that investor overconfidence may lead to:
A.Excessive trading and under-diversified portfolios
B.Perfectly rational mean-variance optimisation
C.Complete elimination of home bias
D.Guaranteed outperformance of passive indices
Explanation: Overconfidence causes investors to overestimate their skill and underestimate risk, resulting in frequent trading, higher costs, and concentrated positions that underperform diversified strategies.

About the KASNEB CIFA Intermediate Exam

The CIFA Intermediate Level comprises five papers: CF21 Portfolio Management, CF22 Financial Statements Analysis, CF23 Equity Investments Analysis, CF24 Corporate Finance, and CF25 Public Finance and Taxation. Each official paper is a three-hour written examination. The syllabus develops investment analysis, portfolio construction, corporate valuation, and Kenyan public finance and tax competencies for aspiring investment analysts, portfolio managers, and finance professionals. This free practice bank reformats intermediate syllabus content into 100 multiple-choice items for revision across all five papers.

Questions

100 scored questions

Time Limit

3 hours per official paper (CF21–CF25)

Passing Score

50% per paper

Exam Fee

Kshs 2,400 per intermediate-level paper (Kenya Accountants and Secretaries National Examinations Board (KASNEB))

KASNEB CIFA Intermediate Exam Content Outline

~20%

Portfolio Management (CF21)

MPT, CAPM, IPS, asset allocation, performance measurement, risk management, and Kenyan capital markets

~20%

Financial Statements Analysis (CF22)

Ratio analysis, cash flows, earnings quality, IFRS, DuPont, segments, and audit reports

~20%

Equity Investments Analysis (CF23)

DCF, dividend models, multiples, market efficiency, industry analysis, and NSE equities

~20%

Corporate Finance (CF24)

Capital budgeting, WACC, capital structure, dividends, M&A, and working capital

~20%

Public Finance and Taxation (CF25)

Kenyan public finance, KRA taxes, VAT, PFM Act, fiscal policy, and devolution

How to Pass the KASNEB CIFA Intermediate Exam

What You Need to Know

  • Passing score: 50% per paper
  • Exam length: 100 questions
  • Time limit: 3 hours per official paper (CF21–CF25)
  • Exam fee: Kshs 2,400 per intermediate-level paper

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

KASNEB CIFA Intermediate Study Tips from Top Performers

1Map each practice question to its paper code — CF21 through CF25 — so revision stays syllabus-aligned.
2Drill ratio analysis and cash flow reconciliation; CF22 rewards candidates who spot earnings quality issues.
3Practice DCF and multiples with Kenyan listed company financials from NSE annual reports.
4Link CF24 capital structure theory to CF22 leverage ratios for integrated corporate analysis.
5Master Kenyan VAT, PAYE, and withholding tax mechanics for CF25 public finance questions.
6Use CMA and KRA official guidance alongside KASNEB study materials for regulatory context.
7Book examinations early through the KASNEB portal and keep registration current.

Frequently Asked Questions

What papers make up the KASNEB CIFA Intermediate Level?

The intermediate level comprises five papers: CF21 Portfolio Management, CF22 Financial Statements Analysis, CF23 Equity Investments Analysis, CF24 Corporate Finance, and CF25 Public Finance and Taxation.

What is the pass mark for CIFA intermediate papers?

Candidates must score at least 50% to pass each KASNEB CIFA paper. Failed papers are re-sat at a later examination sitting.

How much does each intermediate paper cost?

KASNEB charges Kshs 2,400 per intermediate-level paper examination entry. Candidates must also maintain valid registration with the board.

What are the entry requirements for CIFA?

Candidates need a KCSE mean grade of C+ (Plus), a KASNEB diploma, or another recognised diploma. Foundation-level papers or exemptions must be completed before intermediate papers.

When are KASNEB CIFA examinations held?

KASNEB examinations are held three times per year in April, August, and December. Each paper has a three-hour sitting.

Does fixed income analysis appear at intermediate level?

Fixed income investments analysis (CF32) is an advanced-level paper. Intermediate equity analysis (CF23) and corporate finance (CF24) cover foundational valuation and financing concepts.

Who regulates portfolio managers and unit trusts in Kenya?

The Capital Markets Authority (CMA) licenses and supervises capital markets intermediaries, collective investment schemes, and related market conduct in Kenya.

Are these practice questions multiple-choice?

Yes. The official CIFA papers use written responses, but this free practice bank provides 100 multiple-choice items with explanations so you can revise and self-test efficiently.