Is the Situation Getting Worse or Better?
Money Market Funds (MMFs) have become one of the most preferred investment options for individuals and businesses seeking a stable yet rewarding return on their capital. With fluctuating economic conditions and evolving financial markets, it is crucial to assess whether the MMF interest rates are improving or declining.
Knowclick Media will break down the latest MMF interest rates as of February 28, 2025, comparing them with Treasury Bill (T-Bill) returns and inflation rates. We also analyze market trends, helping investors make informed decisions.
Latest Money Market Fund (MMF) Interest Rates as of February 2025
The following table showcases the ranking of various Money Market Funds based on their Annual Rate (%) and Net Return (%). The Net Return is derived after deducting management fees and applicable taxes.
| Rank | Fund Manager | Annual Rate (%) | Net Return (%) |
|---|---|---|---|
| 1 | Gulfcap Money Market Fund | 16.30 | 13.86 |
| 2 | Cytonn Money Market Fund | 16.20 | 13.77 |
| 3 | Etica Money Market Fund | 15.00 | 12.75 |
| 4 | Kuza Money Market Fund | 14.80 | 12.58 |
| 5 | Lofty-Corban Money Market Fund | 14.00 | 11.90 |
| 6 | Genghis Money Market Fund | 13.70 | 11.65 |
| 7 | Orient Kasha Money Market Fund | 13.40 | 11.39 |
| 8 | Arvocap Money Market Fund | 13.20 | 11.22 |
| 9 | Dry Associates Money Market Fund | 13.10 | 11.14 |
| 10 | Nduvu Money Market Fund | 13.06 | 11.10 |
| 11 | Apollo Money Market Fund | 13.00 | 11.05 |
| 12 | British-American Money Market Fund | 12.90 | 10.97 |
| 13 | Jubilee Money Market Fund | 12.70 | 10.80 |
| 14 | GenAfrica Money Market Fund | 12.70 | 10.80 |
| 15 | Enwealth Money Market Fund | 12.70 | 10.80 |
| 16 | Madison Money Market Fund | 12.70 | 10.80 |
| 17 | Old Mutual Money Market Fund | 12.60 | 10.71 |
| 18 | Mali Money Market Fund | 12.53 | 10.65 |
| 19 | I&M Money Market Fund | 12.51 | 10.63 |
| 20 | Sanlam Money Market Fund | 12.50 | 10.63 |
| 21 | Nabo Africa Money Market Fund | 12.20 | 10.37 |
| 22 | Faulu Money Market Fund | 12.10 | 10.29 |
| 23 | Co-op Money Market Fund | 12.00 | 10.20 |
| 24 | ICEA Lion Money Market Fund | 11.90 | 10.12 |
| 25 | CIC Money Market Fund | 11.80 | 10.03 |
| 26 | Absa Shilling Money Market Fund | 11.00 | 9.35 |
| 27 | KCB Money Market Fund | 11.00 | 9.35 |
| 28 | African Alliance Money Market Fund | 10.90 | 9.27 |
| 29 | Mayfair Money Market Fund | 9.80 | 8.33 |
| 30 | Ziidi Money Market Fund | 9.50 | 8.08 |
| 31 | Stanbic Money Market Fund | 9.20 | 7.82 |
| 32 | Equity Money Market Fund | 6.80 | 5.78 |
Total Market Yield: 397.80%
Average Market Return: 12.43% (Annual) | 10.57% (Net)
Comparison with Treasury Bill Returns and Inflation Rate
Besides MMFs, Treasury Bills (T-Bills) are another popular low-risk investment. Here’s how their latest returns compare:
| Instrument | Yield (%) | Net Return (%) |
| 91-Day T-Bill | 8.9% | 7.6% |
| 182-Day T-Bill | 9.3% | 7.9% |
| 364-Day T-Bill | 10.5% | 8.9% |
Inflation Rate (Jan 2025): 3.3%
Key Observations
- Higher MMF Returns than T-Bills – Most MMFs are offering significantly higher net returns than Treasury Bills, making them a more attractive short-term investment.
- Diverse Performance Across MMFs – Gulfcap Money Market Fund leads with a net return of 13.86%, while Equity Money Market Fund lags at 5.78%.
- Inflation Impact – With inflation at 3.3%, investors in MMFs and T-Bills still enjoy positive real returns.
- Stable Growth – The average MMF net return (10.57%) shows a stable market despite economic fluctuations.
Read: Why Ziidi MMF Interest Rates Are Falling and How Investors Can Adapt
Should You Invest in Money Market Funds Now?
Given the higher-than-inflation returns, MMFs remain an excellent choice for investors seeking liquidity and moderate growth. However, it is essential to:
- Compare fund management fees.
- Assess the fund manager’s track record.
- Diversify investments for risk management.
Final Thoughts
Money Market Funds continue to outperform Treasury Bills in 2025, offering attractive returns. While some funds show better performance than others, overall, MMFs remain a solid investment avenue. Investors should stay updated with market trends and choose funds that align with their financial goals.
If you’re looking for a low-risk yet profitable investment, MMFs are a strong option. However, always consult with financial experts before making investment decisions.
