The Short Answer: Etica Money Market Fund is a low risk, CMA regulated investment that has consistently ranked among Kenya’s top performing money market funds. It is not without risk as no investment is, but for most retail investors seeking capital preservation with competitive returns, the risk profile is well within acceptable bounds.
This article gives you the full picture.
Every month, our Money Market Fund Wrap-Up tracks the performance of fund managers across Kenya’s market. Month after month, Etica appears at or near the top of that table. In April 2026, it posted 11.05% gross returns, at a time when the market average sat at 8.95%.
That kind of consistent outperformance naturally raises a question we receive regularly: how risky is Etica Money Market Fund, really?
This article answers that question directly. We cover Etica’s regulatory standing, fund structure, full product range, performance record, and what investors need to understand before committing their money.
Who Is Etica Capital Limited?
Etica Capital Limited is a Kenyan wealth technology company focused on making investment accessible to retail investors through technology. The company’s foundation is built around three principles: transparency, innovation, and financial inclusion.
It received CMA consent for unit trust fund registration in November 2022 and launched the Etica Money Market Fund in February 2023. Since then, it has grown steadily to become one of the most recognised fund managers in the Kenyan retail investment space. By June 2025, Etica’s Unit Trust Scheme managed over Ksh12.7 billion in assets, a 25% jump from March 2025, reflecting strong and growing investor confidence.
Is Etica Money Market Fund CMA Licensed?
Yes. This is the most important risk question to address first.
Etica Capital Limited holds CMA Licence Number 171 and is fully regulated by Kenya’s Capital Markets Authority. The fund is listed on the CMA website as an approved collective investment scheme. What this means in practice:
• Etica must comply with CMA’s fund governance and reporting requirements
• The fund is subject to regular audits and regulatory oversight
• Investor funds are held separately from Etica’s own operational funds
• An independent trustee, Co-operative Bank Kenya Ltd, oversees fund operations
• An independent custodian, Equity Bank Kenya Ltd, holds all investor assets
• The fund is audited by RSM Eastern Africa
The custodian arrangement is a key structural protection. Etica Capital does not hold your money. Equity Bank does. This separation is a foundational safeguard for investors and is a requirement under CMA regulations for all licensed fund managers.
What Does Etica Invest In?
Understanding what a money market fund invests in is the clearest way to understand its risk profile.
The Etica KES Money Market Fund invests in a conservative portfolio of short term instruments. Based on the April 2026 Fact Sheet, the asset allocation is as follows:
• 5% Cash and Call Deposits
• 42% Fixed Deposits placed with regulated Kenyan banks
• 44% Government Securities including Treasury Bills and Bonds backed by the Kenyan government
• 9% Commercial Papers from creditworthy institutions
The fund’s benchmark is the average 91 day Treasury Bill rate plus 1%, meaning it targets returns above the government’s own risk free rate. The management fee is 2.0% per annum, which is standard across Kenya’s MMF market. Interest earned is compounded daily, which accelerates growth over time.
This conservative investment mandate is what keeps money market funds in the low risk category. Unlike equity funds, they do not invest in shares or property. Capital preservation is the primary objective.
Etica’s Full Product Range
Etica Capital offers eight distinct investment products, covering different investor profiles from first time savers starting with KES 100 to high net worth individuals investing KES 1,000,000 and above. Here is a detailed breakdown of each:
| Etica Money Market Fund (KES) Effective Annual Yield: 11.30% | |
| Minimum Investment | KES 100 |
| Minimum Top Up | KES 100 |
| Withdrawal | Within 2 business days, no lock in period |
| Interest Compounding | Daily |
| Management Fee | 2.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | First time investors, emergency fund holders, short term savers, anyone parking money for 3 to 12 months while earning above inflation returns |
| Etica Money Market Fund (USD) Effective Annual Yield: 5.31% | |
| Currency | US Dollar (USD) |
| Minimum Investment and Top-Ups | USD 100 |
| Lock In Period | 1 Month |
| Withdrawal | Within 2 business days |
| Interest Compounding | Daily |
| Management Fee | 2.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | Investors holding dollar savings, diaspora investors, those seeking a hedge against KES depreciation while earning USD returns |
| Etica Fixed Income Fund (KES) Effective Annual Yield: 12.68% | |
| Minimum Investment and Top-Ups | KES 100 |
| Lock In Period | No lock in period |
| Interest Compounding | Daily |
| Management Fee | 2.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | Investors seeking higher returns than standard MMFs who are comfortable with a medium term investment horizon |
| Etica Fixed Income Fund (USD) Effective Annual Yield: 7.08% (April 2026) | |
| Currency | US Dollar (USD) |
| Minimum Investment and Top-Ups | USD 100 |
| Lock In Period | 1 Month |
| Interest Compounding | Daily |
| Management Fee | 2.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | Dollar investors seeking fixed income level returns with USD currency protection |
| Etica Special Shariah Fund (KES) Effective Annual Profit: 5.24% | |
| Currency | Kenya Shilling (KES) |
| Minimum Investment and Top-Ups | KES 100 |
| Lock In Period | No lock in period |
| Interest Compounding | Daily |
| Compliance | Sharia compliant, no interest based instruments |
| Management Fee | 2.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | Muslim investors seeking halal, CMA regulated investment returns in Kenya shillings |
| Etica Special Shariah Fund (USD) Effective Annual Profit: 3.08% | |
| Currency | US Dollar (USD) |
| Minimum Investment and Top-Ups | USD 100 |
| Lock In Period | 1 Month |
| Compliance | Sharia compliant, no interest based instruments |
| Management Fee | 2.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | Muslim investors seeking halal, CMA regulated investment returns in US dollars |
| Etica Special Wealth Fund (KES) Class A: 11.76% | Class B: 11.93% | Class C: 12.10% | |
| Minimum Investment | KES 1,000,000 |
| Class A | 6 month lock in period, 11.76% effective annual yield, 2.25% per annum management fee |
| Class B | 9 month lock in period, 11.93% effective annual yield, 2.00% per annum management fee |
| Class C | 12 month lock in period, 12.10% effective annual yield, 1.75% per annum management fee |
| Interest Compounding | Daily |
| How to Invest | CLICK HERE |
| Best Suited For | High net worth investors seeking structured, premium returns with a defined investment horizon and progressively lower management fees at higher commitment levels |
| Etica Special Multi Asset Fund (KES) Periodic Net Return Q1 2026: 5.02% | |
| Currency | Kenya Shilling (KES) |
| Minimum Investment | KES 250,000 |
| Lock In Period | 6 Months |
| Interest Compounding | Calendar Quarterly |
| Management Fee | Up to 5.00% per annum |
| How to Invest | CLICK HERE |
| Best Suited For | Investors with a higher risk tolerance, a longer investment horizon, and a goal of maximising total returns across a diversified portfolio of equities, bonds, and other asset classes |
| Not Sure Which Etica Product Suits Your Goals? Whether you are starting with KES 100 or KES 1,000,000, our advisors will help you identify the right product based on your timeline, goals, and risk appetite. Book a Free Consultation → link to /free-consultation | Chat on WhatsApp →Click here |
How Has Etica Performed?
Performance data from our monthly tracking tells a consistent story. Etica has ranked in the top tier of Kenya’s 28 fund money market consistently. Here is its performance over recent months from our Wrap-Up Reports:
| Month | Gross Return | Net Return (after WHT) | Market Rank |
| April 2026 | 11.05% | 9.39% | 2nd of 28 funds |
| March 2026 | 10.10% | 8.59% | Top 5 of 28 funds |
| December 2025 | 10.99% | 9.34% | 3rd of 28 funds |
| July 2025 (USD) | 5.87% | 4.99% | 1st of USD funds |
The context matters. The market average in April 2026 was 8.95% gross. Etica’s 11.05% represents a 210 basis point premium above that average. In a market where the spread between the best and worst performing fund exceeds 700 basis points, consistent top tier positioning is a meaningful differentiator.
For full monthly data, refer to our monthly MMF Wrap-Up Reports published on our website https://vasiliafrica.com/blogs-and-insights/
The Risk Question
Low risk is not the same as zero risk, and it is important to be clear about what the risks actually are for any money market fund investor.
The primary risk in any money market fund is that returns are variable, not fixed. As the Central Bank of Kenya adjusts its policy rate, yields across all MMFs move accordingly. The April 2026 market average of 8.95% is lower than the peaks seen in 2024, reflecting CBK’s rate cutting cycle. This is a market wide dynamic, not specific to Etica.
On the structural risks that investors worry about most, such as fraud, mismanagement, or fund collapse, the CMA regulatory framework and independent custodian arrangement provide meaningful protection. Etica Capital holds a CMA Licence. Investor assets are held by Equity Bank Kenya Ltd as an independent custodian, not by Etica itself. This separation is a requirement of CMA regulation and is a foundational investor protection across all licensed funds.
It carries the standard risks of any money market fund, primarily the risk of returns varying with interest rate movements, but the structural risks are well mitigated by CMA regulation and the independent custodian arrangement.
The Vasili Africa View
Our Independent Assessment
- CMA licensed and regulated, Licence No. 171
- Investor funds held by Equity Bank Kenya Ltd as independent custodian
- Co-operative Bank Kenya Ltd serves as independent trustee
- Audited by RSM Eastern Africa
- Consistent top tier performer across Kenya’s 28 fund MMF market
- KES 100 minimum, genuinely accessible to all investors
- No lock in period on MMF products, 2 day withdrawal period
- Eight distinct products covering beginner investors through to high net worth clients
- Sharia compliant options available in both KES and USD
- USD products available for dollar denominated savings
- Over KES 12.7 billion in assets under management as of June 2025
Etica Capital is one of the fund managers we work with at Vasili Africa. It combines genuine regulatory protection, a transparent fee structure, and consistent outperformance in a market where fund selection matters enormously.
Whether you are investing KES 100 for the first time or structuring KES 1,000,000 across their Wealth Fund classes, the right product depends on your specific goals, timeline, and what you are optimising for. That is where having an advisor makes a real difference.
| Ready to Invest in Etica? Register directly through our partner link and get assigned to our advisory team for ongoing support and guidance on your investment journey. Register with Etica → Click Here | Or WhatsApp Us First → Click Here |
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Yields shown are as published by Etica Capital Limited and are subject to change. Past performance is not indicative of future returns. Vasili Africa is a registered partner of Etica Capital Limited. Consult us or a qualified financial advisor before making any investment decision.
