September 2023 Market Wrap-up Report


Money market funds have generally increased their interest rates due to the increase in interest rates in short-term lending to the government through T-Bills.

In September 2023, the daily rate for money market funds was 11.25% p.a. In terms of returns, GenAfrica MMF had the highest return, with an average daily yield of 12.78% p.a. Followed by Cytonn MMF, Enwealth MMF, Apollo MMF, and Etica MMF with average daily yields of 12.68%, 12.57%, 12.52%, and 12.20%, respectively.

Interest rates offered by MMFs are not the only way to measure the performance of a money market fund. The Capital Market Authority (CMA) released the Q2 performance on collective investments and funds under management. The CIC Unit Trust scheme has the highest funds under management, followed by NCBA and Sanlam, respectively.

Here is a list of some considerations to make before selecting a money market fund as your savings vehicle:

  • The experience and expertise of the fund manager,
  • The automation of their processes and reporting,
  • Liquidity: how easily you get your funds when withdrawing,
  • Past performance: although past performance does not necessarily reflect future performance,
  • Stability of the fund: how they have grown their funds under management and the number of clients

Daily Average Yields for MMFs in September

NO.Fund ManagerMMFDaily Average Yield%
1GenAfrica Asset Managers LimitedGenAfrica Money Market Fund12.78
2Cytonn Asset Managers Limited Cytonn Money Market Fund 12.68
3Enwealth Financial Services Enwealth Money Market Fund12.57
4Apollo Asset Management Company Limited Apollo Money Market Fund12.52
5Etica Capital Limited Etica Money Market Fund12.20
6Lofty-Corban Lofty-Corban Money Market Fund12.06
7Madison Investment Managers Limited Madison Money Market Fund11.97
8Jubilee Financial Services LimitedJubilee Money Market Fund11.83
9Co-op Trust Investment Services LimitedCo-op Money Market Fund 11.79
10Kuza Asset Management Limited Kuza Money Market Fund (KES)11.53
11Genghis CapitalGenCap Hela Imara Fund11.25
12Sanlam Investments East Africa Limited Sanlam Money Market Fund 11.13
13Nabo Capital Limited Nabo Africa Money Market Fund 11.09
14Old Mutual Investment GroupOld Mutual Money Market Fund 11.07
15ABSA BankAbsa Shilling Fund MMF11.01
16African AllianceAfrican Alliance Kenya Money Market Fund 10.98
17KCB Group KCB Money Market Fund10.96
18ICEA Asset Lion Asset Management Limited ICEA Lion Money Market Fund 10.94
19Dry AssociatesDry Associates Money Market Fund 10.56
20Zimele Asset Management Zimele Fixed Income Market Fund 10.56
21CIC Asset Managers LimitedCIC Money Market Fund 10.06
22Orient Asset Managers Orient Kasha Money Market Fund 9.93
23Equity Bank Equity Money Market Fund9.56
24Britam Asset Managers (Kenya) LimitedBritish-American Money Market Fund 9.08
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.


The Government offered a tap sale on two bonds to raise KES 15Bn for budgetary support through the new 2-year Bond, FXD1/2023/02, and 5-year Bond, FXD1/2023/5 with coupon rates, of 16.97% and 16.84% respectively. The tap sale was undersubscribed raising only KES 3B. We think the low uptake of the bond is due to anticipation of an impending infrastructure bond.

NameDuration (years)Maturity DateCoupon Months Coupon RateTax Net Return 
FXD1/2023/02218-Aug-25Feb, Aug16.973%15%14.427%
FXD1/2023/5510-Jul-28Jan, July 16.844%15%14.317%
Particulars of the Bonds

The Treasury bills auctions have seen a rise in their yield over the month and despite the 364 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 rates environment. Below is a table with the returns for the 91,182 and 364 papers over the last month:

Rate%Average Return (%)
Paper Sept – 04Sept – 11 Sept – 18 Sept – 25


In September, the Kenyan stock market faced challenges, with major indexes like Nasi, NSE 20, and NSE 10 falling by 3%, 2%, and 5%, respectively. The equities market performance was mainly driven by losses recorded by large-cap stocks such as KCB Group and Safaricom of 6.7%, and 2.7% respectively.

Foreign investors turned bearish on key blue chips to print out net outflows of KES 1100.71M in the month.

Equity turnover for the month stood at KES 5144.93M with Safaricom being the most traded counter accounting for 41% 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.


The Capital Markets Authority (CMA) granted approval for the issuance of the country’s first-ever Sukuk Bond (“Sukuk”). The bond is the first ever Sharia-compliant bond in Kenya which is issued by Linzi Finco Trust.

The issuance of the bond is a commendable step towards addressing the national housing deficit fulfilling the government’s transformative agenda and increasing the availability of affordable housing financing. It reflects a commitment to improving the lives of citizens and promoting economic growth, while also attracting investments and fostering positive change in the housing sector.


In the global markets during September, we observed a notable decline of 4.1% in equities when measured in USD terms. This downturn was prominently driven by key indices such as the S&P 500, Nasdaq Composite, and Dow Jones, which experienced losses of 4.9%, 5.8%, and 3.5%, respectively. Interestingly, this marked the worst performance month for both the S&P 500 and Nasdaq in 2023.

Additionally, the U.S. dollar demonstrated its strength by appreciating against nine of the G10 currencies as well as many emerging market currencies. It’s also worth noting that core inflation rates witnessed a decrease across both Europe and the United States during this period.

Overall, September presented challenges in global markets, with significant equity declines, a robust U.S. dollar, and shifting inflation dynamics across regions.


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