The Best Money Market Funds (MMFs) in Kenya for 2025

Investing in money market funds (MMFs) is a strategic approach to achieving steady financial growth with minimal risk. In Kenya, MMFs have become a popular investment choice due to their accessibility, liquidity, and consistent returns. Whether you are an individual seeking to grow savings or a business looking for short-term investment options, understanding the top MMFs in 2025 is crucial for making informed decisions.

We dive deep into the best-performing MMFs in Kenya, highlighting their features, performance, and why they are worth considering. We also discuss how to select the right MMF and provide tips to optimize your returns.

What Are Money Market Funds?

Money market funds are unit trust investment schemes that pool resources from multiple investors and invest in short-term, high-quality, and low-risk instruments such as:

• Treasury Bills (T-Bills): Short-term government debt securities.
• Fixed Deposits: Bank deposits offering fixed interest over a specific term.
• Corporate Bonds and Commercial Paper: Private sector-issued debt instruments with competitive returns.

Benefits of MMFs

1. Safety: Invested in low-risk instruments with minimal chance of capital loss.
2. Liquidity: Easy withdrawal policies make MMFs highly flexible.
3. Accessibility: Low entry thresholds starting at KES 1,000.
4. Daily Compounding: Interest is calculated daily and reinvested for exponential growth.

The Top Money Market Funds in Kenya for 2025

1. Sanlam Money Market Fund

• Annualized Yield (2025): ~15.9%
• Minimum Investment: KES 2,500
• Features:
  • No entry or exit fees.
  • Fast withdrawal processing within 48 hours.
  • Investment is spread across T-bills, fixed deposits, and corporate bonds.

2. Cytonn Money Market Fund

• Annualized Yield (2025): ~15.8%
• Minimum Investment: KES 1,000
• Key Highlights:
  • High daily interest rates compounded monthly.
  • Mobile-friendly: Offers a simple investment process via USSD (*809#).
  • No initial or redemption fees.

3. Apollo Money Market Fund

• Annualized Yield (2025): ~15.7%
• Minimum Investment: KES 1,000
• Features:
  • Secure investments in T-bills, government bonds, and commercial papers.
  • Flexible deposit and withdrawal options.
  • High transparency with monthly reporting.

4. GenAfrica Money Market Fund

• Annualized Yield (2025): ~15.4%
• Minimum Investment: KES 5,000
• Highlights:
  • No management or entry fees.
  • Convenient online portal for tracking investments.
  • Rapid withdrawal processing within 24 hours.

5. Madison Money Market Fund

• Annualized Yield (2025): ~15.2%
• Minimum Investment: KES 5,000
• Advantages:
  • Transparent fee structure with zero hidden charges.
  • Monthly compounding for optimized returns.
  • Reliable customer support for seamless investment experiences.

6. Nabo Capital Money Market Fund

• Annualized Yield (2025): ~15.1%
• Minimum Investment: KES 100,000
• Notable Features:
  • High investment threshold targeting institutional clients.
  • Superior liquidity with minimal withdrawal restrictions.
  • Allocations include corporate bonds and bank deposits.

7. Kuza Money Market Fund

• Annualized Yield (2025): ~15.0%
• Minimum Investment: KES 5,000
• Key Features:
  • Capital preservation-focused strategy.
  • Investments span government securities and fixed deposits.
  • Reputable fund management with consistent returns.

Evaluating the Right MMF for You

1. Analyze Annualized Returns

Compare historical yields to assess fund performance consistency. Look beyond current rankings to understand trends.

2. Understand Fee Structures

Some MMFs charge entry, management, or redemption fees. Opt for funds with minimal fees for maximized net returns.

3. Assess Withdrawal Flexibility

Liquidity is essential. Evaluate withdrawal timelines—most MMFs process within 24-72 hours.

4. Review Fund Manager Reputation

A seasoned fund manager can significantly impact the safety and returns of your investment.

5. Regulatory Compliance

Ensure the MMF is regulated by the Capital Markets Authority (CMA), guaranteeing adherence to investment standards.

Tips for Maximizing MMF Investments

1. Start Early: Compounding works best over time. The earlier you invest, the greater your returns.
2. Diversify Investments: Combine MMFs with other instruments like equities or property for balanced growth.
3. Monitor Performance: Regularly track fund yields and switch funds if returns decline.
4. Leverage Technology: Use online portals or mobile apps for easy tracking and transactions.

Common Questions About MMFs in Kenya

1. How safe are MMFs in Kenya?

MMFs are considered low-risk as they primarily invest in government-backed securities and regulated instruments.

2. What is the minimum investment for MMFs?

Most MMFs have an entry threshold of KES 1,000, making them accessible to many.

3. Can I withdraw my money anytime?

Yes, MMFs offer high liquidity, with most withdrawals processed within 1-3 business days.

4. How are MMF returns taxed?

Returns are subject to a 15% withholding tax in Kenya.

5. Which MMF offers the highest returns?

While yields vary, Sanlam and Cytonn consistently lead with annualized yields exceeding 15%.

Also Read: 7 Best Performing Money Market Funds (MMF) in 2024

Money Market Funds remain one of the best investment options for Kenyans in 2025, offering low-risk growth with excellent liquidity. The top MMFs discussed above provide an opportunity to grow your savings while maintaining access to your funds. Whether you’re a seasoned investor or a first-timer, choosing the right MMF is a strategic step toward financial success.

For personalized advice, consult a certified financial advisor or explore the offerings from Kenya’s top MMFs.