October 2023 Market Wrap-up Report


In October 2023, the daily average rate for money market funds was 11.86% p.a., up from 11.25% in September.

In terms of individual returns, GenAfrica MMF had the highest return, with an average daily yield of 13.63% p.a. Followed by Cytonn MMF, Enwealth MMF, Apollo MMF, and Etica MMF with average daily yields of 13.46%, 13.24%, 13.10%, and 13.03%, respectively.

Mayfair Money Market Fund has made an entrance into the market as of September 2023, bringing the number of reporting money market funds to 25.

So, why should you invest in a money market fund?

There are several reasons why people choose to invest in money market funds:

  • High liquidity: MMFs are highly liquid, meaning that investors can easily access their money when they need it. This is because MMFs typically allow investors to redeem their shares at any time, with most offering one free withdrawal per month.
  • Low risk: MMFs are generally considered to be very low-risk investments. This is because they invest in short-term debt securities issued by governments and corporations with good credit ratings.
  • Competitive returns: MMFs typically offer competitive returns, especially compared to other low-risk investments such as savings accounts.
  • Diversification: MMFs can help you to diversify your investment portfolio by investing in a variety of different assets.

Daily Average Yield for MMFs in October

NO.Fund ManagerMMFDaily Average Yield%
1GenAfrica Asset Managers LimitedGenAfrica Money Market Fund13.63
2Cytonn Asset Managers Limited Cytonn Money Market Fund 13.46
3Enwealth Financial Services Enwealth Money Market Fund13.24
4Apollo Asset Management Company Limited Apollo Money Market Fund13.10
5Etica Capital Limited Etica Money Market Fund13.03
6Zimele Asset Management Zimele Fixed Income Market Fund 12.73
7Lofty-Corban Lofty-Corban Money Market Fund12.70
8Madison Investment Managers Limited Madison Money Market Fund12.41
9Jubilee Financial Services LimitedJubilee Money Market Fund12.32
10Co-op Trust Investment Services LimitedCo-op Money Market Fund 12.22
11Kuza Asset Management Limited Kuza Money Market Fund (KES)12.01
12Nabo Capital Limited Nabo Africa Money Market Fund 12.01
13African AllianceAfrican Alliance Kenya Money Market Fund 11.91
14Genghis CapitalGenCap Hela Imara Fund11.89
15Sanlam Investments East Africa Limited Sanlam Money Market Fund 11.75
16Old Mutual Investment GroupOld Mutual Money Market Fund 11.66
17ABSA BankAbsa Shilling Fund MMF11.53
18KCB Group KCB Money Market Fund11.16
19Mayfair Insurance Mayfair Money Market Fund 11.04
20ICEA Asset Lion Asset Management Limited ICEA Lion Money Market Fund 10.91
21Equity Bank Equity Money Market Fund10.88
22Dry AssociatesDry Associates Money Market Fund 10.79
23CIC Asset Managers LimitedCIC Money Market Fund 10.51
24Orient Asset Managers Orient Kasha Money Market Fund 10.49
25Britam Asset Managers (Kenya) LimitedBritish-American Money Market Fund 9.07
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 net return after the withholding tax.


IFB1/2023/6.5 is currently available, and the bidding process is ongoing until November 8, which aims to raise KES 50 Billion. This is the 3rd Infrastructure Bond (IFB) issuance by the government in the current year. As is typical of infrastructure bonds, they are exempt from taxes and feature a coupon rate determined by the market. The issuance of this bond is particularly significant due to the recent uptick in T-Bill interest rates, which now stand at 15%.

It is a 6.5-year bond with a minimum bidding amount of KES 50,000, down from the normal KES 100,000 for IFB bonds. This bond operates on an amortization schedule, with 50% of the bond’s principal due for repayment in 2027, followed by 30% in 2029, and the final 20% for full redemption in 2030.

NameDuration (years)Coupon RateMin. Bidding amountCoupon MonthsMaturity
IFB1/2023/6.56.5Market Determined50,000May &Nov May 2030
Particulars of the Bonds

The Treasury bills auctions have seen a rise in their yield over the month, and despite the 364-day paper having a huge discount and yield to maturity, the 91-day paper still had the highest demand, reflecting investors’ preference for short-term government securities due to the interest rate environment. Below is a table with the returns for the 91,182 and 364 papers over the last month:

Rate%Average Return %
Paper Oct-02Oct -09Oct- 16Oct -22Oct -30

How Do You Determine the Return on a Treasury Bill?

Treasury bills are sold at a discounted price (always lower than the unit par value of KES 100), and therefore the discount is the only return an investor earns on Treasury bills. Many factors can influence prices, including macroeconomic conditions, monetary policy, and the overall supply and demand for Treasury securities.

The price is computed per KES 100, depending on the interest rate/yield quoted by the investor. For example, in the latest 91-day bill, here is how you arrive at the discounted price.

If you are to invest KES 500,000 and assume a tax of 15%, you will invest KES 481,846.5 plus withholding tax, KES 2,723.025, bringing the total you will pay for the investment + tax to KES 484,569.525. Thus, your return on investment will be KES 15,430.475 for 91 days (3 months).


In October, the Kenyan stock market faced challenges, with major indexes like Nasi, NSE 25, and NSE 20 falling by 7%, 4.2%, and 3.2%, respectively. The equities market’s performance was primarily influenced by the losses suffered by large-cap stocks such as KCB and Safaricom, which plummeted by 16.1% and 14.7%, respectively.

Foreign investors turned bullish on key blue chips to print out a net inflow of USD 3.7 million in the month.

Equity turnover for the month stood at USD 28.05 million, with Safaricom being the most traded counter, accounting for 63% of the total market activity.

Short-term prospects for the stock market are uncertain due to a challenging environment and foreign investors selling off assets. However, in the long term, there’s optimism because of low valuations and the potential for global and local economic recovery.


Last but not least are the global markets, which saw a notable decline in US equities, with both S&P and Nasdaq losing over 10% from their July highs. Several sectors, including energy, airlines, media, homebuilders, machinery, and banks, performed poorly.

The US dollar had a mixed performance, weakening against the euro but strengthening against the Japanese Yen.

Global markets faced challenges in October, with significant equity declines and growing geopolitical risks that could impact energy prices and inflation in the coming months.


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