January 2024 Market Wrap-up Report


The year began with a surge in money market fund rates, causing Cytonn Money Market Fund to drop out of the top 5 in terms of daily effective rate returns. The average daily effective rate for money market funds rose to 13% per annum, up from 12.51% in December 2023. This increase was driven by rising interest rates in government securities, a key asset class for these funds.

In terms of individual performance, Etica Money Market Fund led the way with an average daily yield of 15.68% per annum. Following closely were Lofty Corban, Apollo, Nabo Capital, and GenAfrica Money Market Funds, with daily average effective rates of 15.26%, 15.05%, 14.89%, and 14.80%, respectively.

Daily Average Yields for MMFs in January

To note, to get the true rate of a money market fund, remove the withholding tax of 15% from the announced yield. Some funds, though, report a net return after the withholding tax.


In January, Cytonn USD Money Market claimed the top spot with an average return of 6.12%, trailed by Lofty Corban, Sanlam, and Dry Associates with average returns of 5.94%, 5.88%, and 5.74%, respectively. Investing in USD Money Market Funds is a prudent strategy to safeguard the value of your USD currency, especially considering the potential for a stronger dollar against the shilling in the future.


Fixed-income funds are investment vehicles that primarily focus on allocating their assets to a diverse range of fixed-income securities. These securities typically include government bonds, corporate bonds, Treasury bills, and other debt instruments. The primary objective of fixed income funds in Kenya is to generate income through regular interest payments and, in some cases, to achieve capital appreciation.

Lofty Corban Special Money Market Fund, operating as a fixed-income fund, secured the leading position with an impressive average return of 15.69%. Following closely were Etica, Nabo, Madison, and Zimele Fixed Income Funds, posting average daily effective returns of 14.66%, 14.33%, 14.05%, and 13.27%, respectively.


In January, the government unveiled an amortized infrastructure bond, IFB1/2024/8.5, with an 8.5-year duration set to be auctioned from 24/01/2024 to 14/02/2024. This type of bond allows for partial redemption before maturity, following a specific schedule: 20% amortization of the outstanding principal amount in February 2027, 30% in February 2030, and full redemption in August 2032. Notably, any amounts up to KES. 1.0 million per CSD account at amortization will be fully redeemed.

Particulars of the Bond


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