Understanding Money Market Funds in Kenya
Money Market Funds (MMFs) are a popular investment option in Kenya, offering both security and consistent returns. These funds invest in short-term, low-risk securities such as Treasury bills, commercial paper, and fixed deposits. For investors seeking a balance between liquidity and returns, MMFs have become a reliable choice, especially in an economy marked by fluctuating inflation rates and interest rates.
The Top Performing Money Market Funds in Kenya 2025
Below is a comprehensive table of the leading Money Market Funds in Kenya as of 04/04/2025. This table provides key metrics such as the annual rate (%) and net return (%), helping investors make informed decisions.
Rank | Fund Manager | Annual Rate (%) | Net Return (%) |
|---|---|---|---|
1 | Gulfcap Money Market Fund | 16.25 | 13.81 |
2 | Cytonn Money Market Fund | 14.95 | 12.71 |
3 | Kuza Money Market Fund | 13.83 | 11.76 |
4 | Etica Money Market Fund | 13.81 | 11.74 |
5 | Lofty Corban Money Market Fund | 13.68 | 11.63 |
6 | Orient Money Market Fund | 13.31 | 11.31 |
7 | Ndovu Money Market Fund | 13.10 | 11.14 |
8 | Enwealth Money Market Fund | 12.72 | 10.81 |
9 | ArvoCap Money Market Fund | 12.60 | 10.71 |
10 | Old Mutual Money Market Fund | 12.49 | 10.62 |
11 | Britam Money Market Fund | 12.48 | 10.61 |
12 | Madison Money Market Fund | 12.43 | 10.57 |
13 | Nabo Money Market Fund | 12.20 | 10.37 |
14 | Jubilee Money Market Fund | 11.93 | 10.14 |
15 | Dry Associates Money Market Fund | 11.91 | 10.12 |
16 | I&M Money Market Fund | 11.85 | 10.07 |
17 | Sanlam Money Market Fund | 11.84 | 10.06 |
18 | Gen Africa Money Market Fund | 11.72 | 9.96 |
19 | Faulu Money Market Fund | 11.68 | 9.93 |
20 | Apollo Money Market Fund | 11.53 | 9.80 |
21 | Co-op Money Market Fund | 11.51 | 9.78 |
22 | Absa Money Market Fund | 11.17 | 9.49 |
23 | CIC Money Market Fund | 11.15 | 9.48 |
24 | ICEA Money Market Fund | 10.91 | 9.27 |
25 | KCB Money Market Fund | 10.80 | 9.18 |
26 | Mali Money Market Fund | 10.55 | 8.97 |
27 | African Alliance Money Market Fund | 10.52 | 8.94 |
28 | Gencap Money Market Fund | 9.87 | 8.39 |
29 | Mayfair Money Market Fund | 9.66 | 8.21 |
30 | Stanbic Money Market Fund | 7.39 | 6.28 |
31 | Ziidi Money Market Fund | 7.27 | 6.18 |
32 | Equity Money Market Fund | 5.70 | 4.85 |
Market Benchmarks and Insights
The average market return for MMFs in Kenya is as follows:
Metric | Percentage (%) |
Average Market Return (Annual) | 11.65 |
Average Net Return | 9.90 |
91-Day T-Bill Return | 8.6 |
182-Day T-Bill Return | 9.0 |
364-Day T-Bill Return | 10.4 |
Inflation Rate (March 2025) | 3.6 |
Central Bank Rate (April 2025) | 10.75 |
How to Start Investing in Money Market Funds in Kenya
- Research and Compare: Use resources like this guide to compare top funds.
- Choose a Fund: Select one that meets your needs based on returns, fees, and other factors.
- Open an Account: Visit the fund manager’s office or use their online platforms to create an account.
- Deposit Funds: Transfer the minimum required amount to start your investment.
- Monitor Performance: Regularly check your fund’s performance and adjust your investment strategy if needed.
Tax Implications of Money Market Funds
While money market fund returns are attractive, they are subject to withholding tax in Kenya. Ensure you factor in these taxes when calculating your net returns.
Read: Why Ziidi MMF Interest Rates Are Falling and How Investors Can Adapt
FAQs
Are money market funds safe?
Yes, they are low-risk investments regulated by the Capital Markets Authority.
What is the minimum amount I need to invest?
Minimum investment requirements vary by fund, ranging from KES 1,000 to KES 10,000.
How do I withdraw my funds?
Most fund managers allow withdrawals within 24-48 hours, offering high liquidity.
Can I lose money in a money market fund?
While risks are low, returns are not guaranteed and depend on market conditions.
Are money market funds better than savings accounts?
Yes, they typically offer higher returns and greater flexibility.
Conclusion
Money market funds in Kenya continue to be an attractive investment option for those seeking stability and liquidity. By investing in one of the top-performing funds listed above, you can ensure consistent returns and achieve your financial goals. Remember to conduct thorough research and consult with financial experts to make informed decisions.
