Money market funds (MMFs) have gained immense popularity in Kenya due to their stability, attractive yields, and liquidity. These funds are tailored to suit investors seeking low-risk avenues to grow their wealth. Knowclick Media provides an in-depth analysis of the top 30 MMFs in Kenya for May 2025, using updated data on their yields, tax implications, and overall market performance.
Whether you’re an experienced investor or just starting, this guide will help you make informed decisions for a secure financial future.
What Are Money Market Funds?
Money market funds are collective investment schemes that pool funds from various investors to invest in short-term, high-quality debt instruments like Treasury bills, commercial papers, and fixed deposits. Their primary aim is to provide safety, liquidity, and moderate income.
In Kenya, MMFs are regulated by the Capital Markets Authority (CMA), ensuring investor protection and market stability.
Performance Analysis of Top 30 MMFs in Kenya(May 2025)
Below is the updated table of Kenya’s top 30 MMFs ranked by their annualized yields as of May 9, 2025.
| Rank | Fund Manager | Yield (%) 29th April | Yield (%) 9th May | After Tax (%) |
|---|---|---|---|---|
| 1 | Gulfcap Money Market Fund | 13.87 | 13.87 | 11.79 |
| 2 | Cytonn Money Market Fund | 13.85 | 13.74 | 11.68 |
| 3 | Kuza Money Market Fund | 13.79 | 13.50 | 11.50 |
| 4 | Orient Money Market Fund | 13.06 | 13.06 | 11.10 |
| 5 | Etica Money Market Fund | 13.02 | 13.01 | 11.06 |
| 6 | Gen Africa Money Market Fund | 12.95 | 12.90 | 10.97 |
| 7 | Lofty Corban MMF | 12.96 | 12.89 | 10.96 |
| 8 | Enwealth Money Market Fund | 12.56 | 12.33 | 10.48 |
| 9 | Old Mutual Money Market Fund | 12.29 | 12.21 | 10.38 |
| 10 | Britam Money Market Fund | 12.19 | 12.17 | 10.34 |
| 11 | Madison Money Market Fund | 12.00 | 11.81 | 10.04 |
| 12 | ArvoCap Money Market Fund | 12.52 | 11.61 | 9.87 |
| 13 | Apollo Money Market Fund | 11.61 | 11.61 | 9.87 |
| 14 | Nabo Money Market Fund | 11.86 | 11.39 | 9.68 |
| 15 | Jubilee Money Market Fund | 11.72 | 11.38 | 9.67 |
| 16 | Faulu Money Market Fund | 11.35 | 11.32 | 9.62 |
| 17 | Sanlam Money Market Fund | 11.38 | 11.23 | 9.55 |
| 18 | Dry Associates MMF | 11.41 | 11.21 | 9.53 |
| 19 | CIC Money Market Fund | 10.52 | 10.47 | 8.90 |
| 20 | Co-op Money Market Fund | 10.42 | 10.37 | 8.81 |
| 21 | KCB Money Market Fund | 10.59 | 10.21 | 8.68 |
| 22 | ICEA Money Market Fund | 10.29 | 10.20 | 8.67 |
| 23 | Mali Money Market Fund | 10.01 | 10.04 | 8.53 |
| 24 | Gencap Money Market Fund | 9.06 | 9.95 | 8.46 |
| 25 | Absa Money Market Fund | 9.83 | 9.70 | 8.25 |
| 26 | Mayfair Money Market Fund | 9.38 | 9.43 | 8.02 |
| 27 | African Alliance MMF | 8.86 | 8.48 | 7.21 |
| 28 | Stanbic Money Market Fund | 7.62 | 7.70 | 6.55 |
| 29 | Ziidi Money Market Fund | 7.34 | 7.28 | 6.19 |
| 30 | Equity Money Market Fund | 5.48 | 5.47 | 4.65 |
| Total | 333.29 | 330.54 | 280.96 | |
| Average Market Return | 11.11 | 11.02 | 9.37 |
Why MMFs Are Attracting Investors in 2025
- Competitive Yields: With annualized yields as high as 13.87%, MMFs outperform traditional savings accounts and Treasury bills.
- Liquidity: MMFs allow investors to access their funds with minimal restrictions, making them suitable for short-term goals.
- Low Risk: Investments are in low-risk securities, ensuring the preservation of capital.
- Tax Efficiency: The after-tax yield remains competitive despite the 15% withholding tax.
Comparing MMFs to Treasury Bills
MMFs are often compared to Treasury bills due to their similar risk profiles. However, MMFs offer higher returns and greater flexibility.
- 91-Day T-Bill Yield: 7.1%
- 182-Day T-Bill Yield: 7.3%
- 364-Day T-Bill Yield: 8.5%
In contrast, the average market return for Top 30 MMFs in Kenya in May 2025 stands at 9.37% after taxes, making them a preferred choice for investors seeking better returns.
Factors to Consider When Choosing an MMF
To select the best money market fund, evaluate these critical factors:
- Yield Performance: Analyze historical and current yields to identify consistent performers.
- After-Tax Returns: Calculate actual returns after accounting for the 15% withholding tax.
- Fund Stability: Look for funds with a track record of consistent returns.
- Liquidity Options: Ensure the fund allows easy withdrawal without penalties.
- Reputation of Fund Manager: Choose funds managed by trusted institutions with solid financial backing.
Top Performing Funds in Detail
- Gulfcap Money Market Fund
- Yield: 13.87%
- Key Features: High performance, reliable liquidity, and robust management.
- Cytonn Money Market Fund
- Yield: 13.74%
- Key Features: Strong yield consistency and investor-centric policies.
- Kuza Money Market Fund
- Yield: 13.50%
- Key Features: Attractive returns and excellent customer service.
The Role of MMFs in Kenya’s Economy
Money market funds contribute significantly to Kenya’s financial ecosystem by channeling savings into productive investments. They provide an essential buffer for investors during periods of economic uncertainty and contribute to the liquidity of the money markets.
How to Start Investing in MMFs
- Research Funds: Use tools like fund performance tables to compare options.
- Open an Account: Register with your chosen fund manager.
- Deposit Funds: Start with a small investment to test the waters.
- Monitor Returns: Regularly review fund performance and adjust your investment strategy accordingly.
Read: What is Ziidi Shariah MMF?
Final Thoughts
Money market funds remain one of the most reliable and lucrative investment options in Kenya. With yields outperforming other low-risk instruments, they are ideal for individuals and institutions aiming to grow their wealth securely. Use the data in this guide to compare top-performing funds and align your investments with your financial goals.
