Best Returns and Tax Insights for 2025
Money market funds (MMFs) are among the most sought-after investment options in Kenya, especially for individuals and institutions seeking stable, low-risk returns. As of May 2025, MMFs have gained popularity due to their higher yields compared to other fixed-income instruments like Treasury Bills (T-Bills). Knowclick Media provides an in-depth analysis of the top 30 money market funds in Kenya, their yields, tax implications, and performance metrics. Let’s explore the details to help you make informed investment decisions.
Why Choose Money Market Funds?
Money market funds are ideal for conservative investors looking for:
- Safety of capital: These funds invest in low-risk instruments such as government securities and commercial paper.
- Liquidity: You can access your money relatively quickly compared to other investment options.
- Competitive returns: MMFs often provide higher after-tax returns compared to savings accounts and short-term T-Bills.
Performance Analysis of the Top 30 MMFs in Kenya (May 2025)
Below is a comprehensive table showing the yields of the top 30 MMFs in Kenya as of May 28, 2025:
Rank | Fund Manager | Yield (%) 15th May | Yield (%) 28th May | After Tax (%) |
|---|---|---|---|---|
1 | Gulfcap Money Market Fund | 13.87 | 13.87 | 11.79 |
2 | Cytonn Money Market Fund | 13.66 | 13.63 | 11.59 |
3 | Gen Africa Money Market Fund | 13.07 | 13.42 | 11.41 |
4 | Kuza Money Market Fund | 13.39 | 13.15 | 11.18 |
5 | ArvoCap Money Market Fund | 13.05 | 13.01 | 11.06 |
6 | Etica Money Market Fund | 12.96 | 12.85 | 10.92 |
7 | Lofty Corban MMF | 12.82 | 12.82 | 10.90 |
8 | Orient Money Market Fund | 11.92 | 12.69 | 10.79 |
9 | Enwealth Money Market Fund | 12.16 | 12.07 | 10.26 |
10 | Old Mutual Money Market Fund | 12.04 | 11.86 | 10.08 |
11 | Jubilee Money Market Fund | 11.31 | 11.49 | 9.77 |
12 | Britam Money Market Fund | 12.83 | 11.43 | 9.72 |
13 | Madison Money Market Fund | 11.72 | 11.42 | 9.71 |
14 | Nabo Money Market Fund | 11.43 | 11.33 | 9.63 |
15 | Gencap Money Market Fund | 10.04 | 11.26 | 9.57 |
16 | Faulu Money Market Fund | 11.00 | 10.82 | 9.20 |
17 | Sanlam Money Market Fund | 11.05 | 10.65 | 9.05 |
18 | Dry Associates MMF | 10.97 | 10.64 | 9.04 |
19 | Apollo Money Market Fund | 10.07 | 10.52 | 8.94 |
20 | Absa Money Market Fund | 9.49 | 10.32 | 8.77 |
21 | KCB Money Market Fund | 10.11 | 10.23 | 8.70 |
22 | CIC Money Market Fund | 10.25 | 10.05 | 8.54 |
23 | Co-op Money Market Fund | 10.16 | 10.01 | 8.51 |
24 | ICEA Money Market Fund | 9.67 | 9.83 | 8.36 |
25 | Mali Money Market Fund | 9.76 | 9.65 | 8.20 |
26 | Mayfair Money Market Fund | 9.21 | 9.20 | 7.82 |
27 | African Alliance MMF | 8.15 | 8.03 | 6.83 |
28 | Stanbic Money Market Fund | 7.48 | 7.79 | 6.62 |
29 | Ziidi Money Market Fund | 7.26 | 7.21 | 6.13 |
30 | Equity Money Market Fund | 4.95 | 5.41 | 4.60 |
Tax Implications
MMFs are subject to a 15% withholding tax on returns. For example, if the gross return is 13%, the after-tax return will be approximately 11.05%. This taxation affects how investors compare MMF returns to other investment options like T-Bills.
Read: Top SACCOs Offering Highest Dividends and Interest Rates
Comparing MMFs and T-Bills
As of May 2025:
- The average MMF return is 10.89%, with an after-tax return of 9.26%.
- The 91-day T-Bill offers 7.1%, while the 182-day and 364-day T-Bills yield 7.3% and 8.5%, respectively.
MMFs outperform T-Bills, especially when considering liquidity and ease of access.
Inflation and Central Bank Rate Impact
- Inflation Rate (April 2025): 4.1%
- Central Bank Rate (CBR): 10.00%
While inflation remains manageable, the high CBR ensures that MMFs maintain competitive yields, making them attractive in the current economic environment.
Choosing the Right MMF
When selecting an MMF:
- Yield: Prioritize funds with consistently high returns.
- Liquidity: Confirm the redemption timelines.
- Fund Manager Reputation: Choose managers with a track record of stability and reliability.
- Tax Efficiency: Consider the after-tax yield.
Conclusion
Money market funds remain a strong investment choice in Kenya for 2025, offering competitive returns and low risk. The top performers like Gulfcap, Cytonn, and Gen Africa lead the pack, making them excellent options for both seasoned and new investors. Always evaluate your financial goals and consult with professionals before committing your funds.
