Kenya’s money market is sending a clear message in 2026: the era of effortless double-digit yields is winding down but the smart money knows exactly where to look. As the Central Bank of Kenya eases its policy rate for the first time in years, returns across the board are adjusting. And yet, several fund managers are holding the line, delivering resilient, above-market performance in a climate that is testing everyone’s resolve.
This is your April 2026 Money Market Wrap-Up. No fluff. Just the data, the context, and what it means for your portfolio.
01. The Macro Backdrop: Rates Ease, Inflation Stirs
The CBK opened 2026 with a rate cut that rattled the money market landscape. The policy rate dropped from 9.0% in January to 8.75% in February, a deliberate move to stimulate economic activity after a sustained period of elevated borrowing costs. That single decision is the single biggest reason MMF yields are trending downward this year.
Meanwhile, inflation has been on an uneven walk. It eased from 4.4% in January to 4.3% in February, bounced back to 4.4% in March, and then took a more notable jump to 5.6% in April 2026. The April tick-up deserves watching as it may reflect seasonal cost pressures or early signs of demand recovery. Either way, real returns, your yield minus inflation are getting squeezed from both ends.
Figure 1: CBK Policy Rate vs. Inflation (Jan–Apr 2026)
The bottom line: Treasury bill yields are on a gradual descent, and most MMFs are expected to dip below the 10% gross mark as the year progresses. But “most” is not “all” and that gap is exactly where opportunity hides.
02. Kenya Shilling MMFs: Who Is Holding the Line?
Across 28 Kenya Shilling Money Market Funds tracked this month, the market average sits at 8.95% gross (7.61% after withholding tax). That figure is respectable, it comfortably outpaces a standard savings account and beats the current inflation rate but the real story is in the top tier, where a clutch of managers are putting in work that deserves recognition.
Figure 2: KES MMF Returns — April 2026 (Green bars = ≥10% gross)
Nabo Africa Money Market Fund leads the pack with a gross return of 11.51% p.a., netting investors 9.78% after tax, the strongest showing on the board. Nabo has consistently punched above its weight, and April is no exception.
Etica Capital Money Market Fund takes second position at 11.05% gross / 9.39% net. Cytonn rounds out the podium at 10.65% / 9.06%, followed by Arvocap (10.38% / 8.82%) and Gulfcap (10.32% /8.77%). These five funds form a clear top tier all delivering above 10% gross returns when the market average sits well below that threshold.
| Fund Manager | Fund Name | Avg Return (%) | Net Return (%) |
|---|---|---|---|
| Nabo Capital Limited | Nabo Africa MMF | 11.51 | 9.78 |
| Etica Capital Limited | Etica MMF | 11.05 | 9.39 |
| Cytonn Asset Managers | Cytonn MMF | 10.65 | 9.06 |
| Arvocap | Arvocap MMF | 10.38 | 8.82 |
| Gulfcap | Gulfcap MMF | 10.32 | 8.77 |
| Enwealth Financial Services | Enwealth MMF | 10.16 | 8.63 |
| Lofty-Corban | Lofty-Corban MMF | 10.13 | 8.61 |
| Jubilee Financial Services | Jubilee MMF | 10.05 | 8.54 |
| Orient Asset Managers | Orient Kasha MMF | 9.87 | 8.39 |
| Kuza Asset Management | Kuza MMF (KES) | 9.76 | 8.30 |
| Madison Investment Managers | Madison MMF | 9.76 | 8.30 |
| Faulu Microfinance Bank | Faulu MMF | 9.73 | 8.27 |
| Old Mutual Investment Group | Old Mutual MMF | 9.70 | 8.24 |
| GenAfrica Asset Managers | GenAfrica MMF | 9.23 | 7.84 |
| Britam Asset Managers | Britam MMF | 9.06 | 7.70 |
| Dry Associates | Dry Associates MMF | 8.98 | 7.63 |
| Sanlam Investments EA | Sanlam MMF | 8.84 | 7.51 |
| KCB Group | KCB MMF | 8.68 | 7.38 |
| Apollo Asset Management | Apollo MMF | 8.51 | 7.23 |
| Genghis Capital | Genghis MMF | 8.33 | 7.08 |
| CIC Asset Managers | CIC MMF | 8.12 | 6.90 |
| ICEA Lion Asset Management | ICEA Lion MMF | 7.93 | 6.74 |
| Co-op Trust Investment Services | Co-op MMF | 7.91 | 6.72 |
| CPF | CPF MMF | 7.88 | 6.70 |
| Mayfair Asset Managers | Mayfair MMF | 7.49 | 6.37 |
| ABSA Bank | Absa Shilling MMF | 7.08 | 6.02 |
| African Alliance | African Alliance MMF | 5.54 | 4.71 |
| Equity Bank | Equity MMF | 4.07 | 3.46 |
| Daily Cumulative Average | 8.95 | 7.61 |
Table 1: KES MMF Returns, April 2026 • Annualised % p.a.
Past performance is not indicative of future returns. This report is for informational purposes only and does not constitute investment advice.
What This Means for Investors
Recalibrate your expectations: average returns are trending below 10% gross. If your benchmark was double digits a year ago, now is the time to reassess or consider the top-performing funds and fixed income alternatives
Liquidity remains a key strength of MMFs. You can exit at short notice without penalties, making them a superior alternative to fixed deposits for short-term funds.
Stability in a volatile world: while equity markets gyrate, MMFs offer capital preservation with income valuable when macroeconomic signals are mixed.
03. Dollar MMFs: Earning in USD in East Africa
For those holding dollar-denominated savings, the market continues to offer a compelling value proposition: earn in USD, sidestep KES depreciation risk, and still pocket meaningful returns. The sector average lands at 5.05% gross (4.29% net), compare that to a standard US bank savings account, and the appeal becomes clear.
Figure 3: USD MMF Returns — April 2026
Nabo Africa MMF USD dominates again this time in the dollar segment posting 6.74% gross (5.73% net). Etica MMF USD follows closely at 6.50% / 5.53%, while Sanlam USD (5.47% / 4.65%) and Dry Associates USD (5.21% / 4.43%) complete a solid top four. At the lower end, KCB MMF USD at 3.58% gross is a reminder that fund selection matters as much in the dollar segment as it does in shilling funds.
| Fund Manager | Fund Name | Avg Return (%) | Net Return (%) |
|---|---|---|---|
| Nabo Capital Limited | Nabo Africa MMF USD | 6.74 | 5.73 |
| Etica Capital | Etica MMF USD | 6.50 | 5.53 |
| Sanlam Investments EA | Sanlam MMF USD | 5.47 | 4.65 |
| Dry Associates | Dry Associates MMF USD | 5.21 | 4.43 |
| Old Mutual Investment Group | Old Mutual MMF USD | 5.11 | 4.35 |
| Jubilee Financial Services | Jubilee MMF USD | 5.00 | 4.25 |
| Kuza Asset Management | Kuza MMF USD | 4.99 | 4.24 |
| CIC Asset Managers | CIC MMF USD | 4.77 | 4.05 |
| Britam Asset Managers | Britam MMF | 4.38 | 3.72 |
| ABSA Bank | Absa Dollar MMF | 3.81 | 3.24 |
| KCB Group | KCB MMF USD | 3.58 | 3.04 |
| Daily Cumulative Average | 5.05 | 4.29 |
Table 2: USD MMF Returns, April 2026 • Annualised % p.a.
Past performance is not indicative of future returns. This report is for informational purposes only and does not constitute investment advice.
04. Fixed Income Funds: Where the Real Alpha Lives
If Money Market Funds are the steady handshake of the investment world, Fixed Income Funds are the firm grip. They carry marginally more risk and suit a slightly longer horizon but the returns on offer in April 2026 make a compelling case for a closer look.
Figure 4: Fixed Income Fund Returns — April 2026
Mayfair Fixed Income Fund is the standout story of the month and arguably of the year so far. A gross return of 16.71% (14.21% net) is not a typo. That is the result of consistent, deliberate portfolio management over six months, and it places Mayfair in a category entirely of its own. If your investment radar has not picked up Mayfair yet, it probably should.
Behind Mayfair, the sector is a tight contest: Nabo (11.72% / 9.96%), Zimele (11.33% / 9.63%), Gulfcap (11.12% / 9.45%), Kuza (10.76% / 9.14%), and Madison (10.28% / 8.74%) all delivered net returns deep in the high single digits. Even Britam Bond Plus at 9.84% gross (8.36% net) sits comfortably above the MMF market average.
The sector average of 11.68% gross / 9.93% net is roughly 280 basis points above the MMF market average a meaningful premium that compensates well for the marginally longer lock-in periods these funds typically carry.
| Fund Manager | Fund Name | Avg Return (%) | Net Return (%) |
|---|---|---|---|
| Mayfair Asset Managers | Mayfair Fixed Income Fund | 16.71 | 14.21 |
| Nabo Asset Managers | Nabo Fixed Income Fund | 11.72 | 9.96 |
| Zimele Asset Management | Zimele Fixed Income Fund | 11.33 | 9.63 |
| Gulfcap | Gulfcap Fixed Income Fund | 11.12 | 9.45 |
| Kuza Asset Management | Kuza Fixed Income Fund | 10.76 | 9.14 |
| Madison Asset Managers | Madison Fixed Income Fund | 10.28 | 8.74 |
| Britam Asset Managers | Britam Bond Plus Fund | 9.84 | 8.36 |
| Daily Cumulative Average | 11.68 | 9.93 |
Table 3: Fixed Income Fund Returns, April 2026 • Annualised % p.a.
Past performance is not indicative of future returns. This report is for informational purposes only and does not constitute investment advice.
05. The Takeaway
The rate cycle has turned. That is not an alarm, it is context. Kenya’s MMF market remains one of the most accessible, liquid, and transparent investment categories available to retail investors on the continent. Even at a market average of 8.95% gross, you are earning real returns above inflation, with daily liquidity.
But standing still is not a strategy. The funds at the top of these tables — Nabo, Etica, Cytonn, Mayfair and Zimele are there because of active, deliberate portfolio decisions. If your current fund is sitting in the bottom quartile, it is worth asking why.
Use this report as a starting point. Do your due diligence. Ask your fund manager the hard questions. And if you are ready to explore where these instruments fit in your overall portfolio, take the next step today.
06. Looking Ahead: What May 2026 Could Bring
Forecasting is a dangerous business especially in a market shaped by central bank decisions, geopolitical tremors, and the unpredictable mood of global commodity prices. But informed speculation, grounded in the data we actually have, is not just useful. It is necessary. Here is our read of where May 2026 is headed, and what it means for your money.
Figure 5: CBK Rate Cutting Cycle & MMF Market Avg Trajectory (Aug 2024 – May 2026 Est.)
The CBK Has Hit Pause — And That Is Actually Good News
Here is a fact worth sitting with: the CBK has cut rates ten consecutive times since August 2024, slashing 425 basis points off the policy rate in the span of roughly 18 months. On April 8, 2026, it stopped. The Monetary Policy Committee held the rate at 8.75%, citing the need to keep inflation expectations anchored and the exchange rate stable.
The pause matters for MMF investors for a straightforward reason: when rates stop falling, yields stop falling too. The relentless compression of returns that characterized late 2024 through early 2026 has likely run its course at least for the next few months. Do not expect a rebound to 12% or 13% territory. But the floor may be closer than it appears.
With the 91-day T-bill currently yielding 7.56% and the 364-day bill at 8.48%, the underlying instruments that MMFs invest in are already pricing in stability. Expect most MMF gross returns to consolidate in the 8.5%–9.5% band through May. The top performers, those with the flexibility to access commercial paper and higher-yield placements may still hold above 10%.
The April Inflation Surprise: A Yellow Flag, Not a Red One
April’s inflation print of 5.6% — up sharply from 4.4% in March is the number that deserves the most attention heading into May. It is not yet at a level that forces the CBK’s hand, but it is trending in the wrong direction, and the committee has already flagged rising oil prices and Middle East supply chain disruptions as live risks.
The CBK’s own surveys from March 2026 show that a majority of respondents expect inflation to rise in the near term. If May’s data confirms the April trend, real returns from MMFs (net yield minus inflation) will be under additional pressure. At the April market average net return of 7.61% against 5.6% inflation,you are netting roughly 2% in real terms. Still positive, still worth holding, but the margin is thinner than it was twelve months ago.
The silver lining: if inflation rises meaningfully above 5.5%, the CBK may signal a halt to any future easing which would be yield-supportive for MMFs. A central bank that cannot cut further is a friend to fixed-income investors.
Figure 6: May 2026 Risk Dashboard — Key Factors to Watch (10 = Highest Risk/Impact)
The Shilling: A Quiet Strength Worth Monitoring
The Kenya Shilling closed April 2026 at around KES 129.2 to the USD — firm, backed by record foreign exchange reserves of USD 10.9 billion (4.9 months of import cover) and strong diaspora remittances up 8.8% year-to-date. That stability has been the unsung hero of the low-inflation environment.
One risk worth tracking in May: the proposed 3.5% US remittance tax. If enacted, it would directly reduce the flow of dollars into Kenya from the diaspora, one of the key pillars keeping the shilling stable. For Dollar MMF investors, this is not a reason to panic, but it is a reason to stay informed. A weaker shilling would widen the return differential between KES and USD funds in favour of the dollar.
Fixed Income Funds: The May Opportunity
If there is one call to make heading into May, it is this: the case for Fixed Income Funds is strengthening. As MMF yields compress and the CBK pauses, the spread between the two categories already at roughly 280 basis points, is likely to hold or even widen slightly. Mayfair’s 16.71% gross return was not an accident; it reflects active duration management in a falling-rate environment, locking in higher yields on longer-dated paper before the window closed.
In May, that window is not fully shut. Investors who have been sitting in MMFs and watching fixed income from the sidelines may find May to be a practical entry point. The sector average of 11.68% gross (9.93% net) is delivering nearly 230 basis points of additional net return above the MMF average and given the CBK pause, that premium is unlikely to erode quickly.
Three Scenarios for May 2026
| Scenario | Conditions | MMF Outlook |
|---|---|---|
| Base Case (Most Likely) | CBK holds at 8.75%. Inflation stabilises below 5.5%. KES holds around 129-131. T-bills consolidate. | KES MMF average holds 8.7%-9.0% gross. Top funds stay above 10%. Fixed income outperforms. |
| Bull Case | Inflation retreats. Middle East tensions ease. Government domestic borrowing increases, pushing bond yields higher. | MMF top tier reclaims 11%+ gross. Fixed income sector avg nudges toward 13%. Strong month for yield seekers. |
| Bear Case | Oil price shock spills into inflation above 6.5%. KES weakens past 133. CBK considers reversing course. | KES MMF avg dips toward 8.3% gross. Real returns turn negative for lower-tier funds. USD funds benefit from FX differential. |
Table 4: May 2026 Scenario Analysis • Speculative. Based on current macro trajectory and historical patterns.
The Bottom Line for May
- Yields are likely to stabilise, not collapse. The CBK pause removes the biggest downward pressure that has defined the past 18 months.
- Watch inflation closely. The April 5.6% print is the single most important number to monitor. If May confirms the trend, real returns shrink further. If it reverses, the outlook brightens.
- Fixed income is the May play for yield-seekers. With MMF compression largely priced in, the incremental return from Fixed Income funds nearly 230 bps net above the MMF average is increasingly hard to ignore.
- Dollar MMF holders should track the US remittance tax debate. A passage of that bill is a live risk to KES stability. Holding some USD-denominated exposure remains a prudent hedge.
- Fund selection has never mattered more. At a market where the spread between the best and worst performing fund is over 700 basis points gross, which fund you are in is arguably more important than the asset class itself.
Data sourced from daily fund performance disclosures as published in Kenyan daily newspapers. Macro data sourced from CBK, Trading Economics, and Sanlam Investments East Africa. Tracking methodology: daily effective annualised returns.
Forward-looking statements are speculative and based on current macro trajectory. Past performance is not a guide to future returns. The above information doesn’t constitute to financial advice, it’s opinion of the writers. Consult Vasili Africa or your financial advisor before making any investment decision.
