Top 15 Money Market Funds in Kenya: April 2024

Q. Why do we track the Daily Effective Yield in Money Market Funds?

ANS. Money market funds commonly disclose both the daily and annual effective yield. The daily yield signifies the interest earned within a day, while the annual effective yield represents the total return on investment over a year, considering compound interest, assuming all factors remain constant. This metric demonstrates the annual growth rate of an investment, incorporating both interest and compounding effects.

Essentially, the earnings on your MMF savings accumulate based on the daily yield, which is compounded monthly.

In April, there was a persistent uptrend in money market fund rates, evidenced by the average daily effective rate reaching 14.11% p.a., up from March’s average of 13.90% p.a.

In terms of individual performance, Lofty Corban Money Market Fund topped the table with an average daily yield of 16.84% p.a., followed by Etica, Apollo, Cytonn, and GenAfrica Money Market Funds, with daily average effective rates of 16.70%, 15.94%, 15.79%, and 15.69% p.a., respectively.

Daily Average Yields for MMFs in April

1. Lofty-Corban KSH Money Market Fund (16.84%)

After months of playing second fiddle, the Lofty-Corban KSH Money Market Fund has finally claimed the top spot, showcasing its resilience and consistent performance. The fund posted an impressive average effective daily yield of 16.84%.

Key features of Lofty-Corban KSH MMF are:

• Low minimum investment: you can invest as little as KES 1000
• Accessibility: funds are accessible at short notice
• Capital preservation: no loss of money invested
• Compounding: earn interest on interest
• The fund invests in interest-bearing instruments, including bank deposits, Treasury bills, and commercial papers

2. Etica Money Market Fund (16.70%)

Etica Money Market Fund’s remarkable three-month streak as the best-performing money market fund in Kenya has come to an end, as the fund now settles into the second-place position, poised for a potential resurgence. The fund delivered an average effective daily yield of 16.70%, which is still quite remarkable.

For those considering beginning their investment journey with this fund, you will require an initial minimum investment of KES 100 and top-ups of at least KES 100 only.

More features of the Etica MMF are:

• High liquidity of funds
• No lock-in period
• With the daily compounding of interest, which is then credited daily to clients’ accounts, you are able to see your money grow on a day-to-day basis

3. Apollo Money Market Fund (15.94%)

For another month, the Apollo Money Market Fund, managed by Apollo Asset Management Company Ltd., has carved out its position in the top three, boasting an average daily return of 15.94% and solidifying its reputation as a reliable performer.

Some of the notable features of Apollo MMF that stand out include:

• Initial minimum investment of KES 1,000 and KES 1,000 top-ups
• Top-ups can be made by cheques, cash deposit, standing order, or direct debit order
• The fund invests in low-risk investments with an element of guaranteed returns, such as fixed deposits, T-bills, commercial paper, government bonds, and corporate bonds

4. Cytonn Money Market Fund (15.79%)

Cytonn MMF has cemented its place in fourth place since March after delivering an average daily return of 15.79%.

For a new investor with this fund, you will require an initial minimum investment of KES 1000 and subsequent top-ups of as little as KES 100.

More features of the Cytonn MMF include:

• No entry or exit fee is charged
• Speedy withdrawals
• Interest is earned daily and compounded monthly
• Easy sign-up and top-up by dialing *809#

5. GenAfrica Money Market Fund (15.69%)

Ascending the ranks, the GenAfrica Money Market Fund has risen one spot higher than its March standing, boasting an impressive average effective daily yield of 15.69%.

Key features of the GenAfrica MMF include:

• No initial fees
• There are no limitations on withdrawal
• Monthly statement updates via email
• Easy sign-up and top-up via the GenAfrica Unit Trust portal

6. Nabo Money Market Fund (KES) (15.51%)

At number 6, there is Nabo MMF, a product of Nabo Capital Ltd., which recorded a daily average yield of 15.51%.

For new investors in the fund, you will require an initial minimum investment of KES 100,000 and subsequent top-ups of KES 10,000 to invest in the fund.

Other notable features of this fund include:

• High liquidity
• Investment period of at least 3 months to allow optimal returns
• Zero initial and redemption fees
• Interest is earned daily and compounded monthly
• Funds are invested in short-term debt securities and instruments

7. Kuza Money Market Fund (KES) (15.14%)

Kuza Money Market Fund secured 7^th place after posting an impressive average effective daily yield of 15.14%. The initial minimum investment for new investors is KES 5,000, with subsequent KES 1,000 top-ups.

Other features of Kuza MMF include:

• Preservation of capital
• High liquidity
• The fund invests in short-term KES-dominated interest-bearing securities such as T-bills, corporate bonds, commercial paper, bank calls, and fixed deposits

8. Enwealth Money Market Fund (15.09%)

Dropping to eighth place is the Enwealth MMF, which delivered an average daily rate of 15.09%, wrapping up the money market funds that have managed to surpass the 15% average daily yield threshold.

Key features of Enwealth MMF include:

• Initial minimum investment of KES 1,000 and KES 1,000 top-ups
• High liquidity (Liquidations paid within t + 2 days)
• No preliminary charges or initial fee
• No redemption fee
• Interest income declared daily (net of all charges) and credited to client’s investment at end of every month

9. Madison Money Market Fund (14.61%)

While March saw Madison Money Market Fund slip to 10th place, the fund has returned to its familiar 9th place ranking in April after recording an average daily yield of 14.61%.

If you’re a novice investor in this fund, you will need an initial minimum investment of KES 5,000 and subsequent top-ups of at least KES 1,000.

More notable features of Madison MMF include:

• No restrictions on tenor
• Withdrawals are processed within 72 working hours
• Monthly distribution of interest

10. KCB Money Market Fund (14.48%)

KCB Money Market Fund lands in tenth place after posting an average effective annual yield of 14.48%. Investors seeking a well-managed fund can find confidence in this option, which has demonstrated consistent growth over the past four months.

Some features of KCB MMF include:

• Minimum Initial Investment: You can start your investment journey with as little as KES 5,000.
• High level of liquidity
• Safety of initial capital
• Funds are invested in low-risk interest-yielding assets like bank deposits, T-bills and T-bonds.

11. Co-op Money Market Fund (14.39%)

Next in our rankings is the Co-op Money Market Fund, which delivered an impressive average daily yield of 14.39%.

The minimum initial investment to begin your investment journey in the fund is KES 2,000, with no limit on subsequent top-ups.

More features of Co-op MMF include:

• Access your money within 2–3 business days
• Allows M-pesa deposits
• Management fees of 0.9%
• Funds are invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits.

12. Absa Shilling Fund MMF (14.36%)

The Absa Shilling Fund MMF recorded an average daily rate of 14.36% to secure 12^th place.

You will need an initial minimum investment of KES 1,000 to start your investment journey with Absa Shilling Fund MMF, and you can top up with whatever amount you wish to save or invest at any time.

More outstanding features of the Absa Shilling Fund MMF include:

• Offers capital stability
• Immediate liquidity
• Interest is earned daily and compounded monthly
• Fee structure: Initial fee – 0% per annum; Annual management fee – 2% per annum
• The fund invests in interest-bearing securities and other short-term money market instruments.

13. Jubilee Money Market Fund (14.33%)

In thirteenth place is the Jubilee Money Market Fund which boasted an average effective daily yield of 14.33%.

Key features of the Jubilee MMF include:

• Safety of initial capital.
• Monthly compounded interests.
• High liquidity.

14. Sanlam Money Market Fund (14.05%)

After a one-month hiatus, Sanlam Money Market Fund, one of Kenya’s standout money market funds, is back on the leaderboard. The fund delivered an average daily rate of 14.05%. If you’re considering this fund as a new investor, you will need an initial deposit of KES 2,500 plus subsequent top-ups of KES 1,000.

More features of the Sanlam MMF include:

• No initial fees are charged; it is free to set up an account
• Easy liquidity
• Capital retention
• Interest is calculated daily and compounded monthly
• Funds are invested in high-quality interest-bearing assets, fixed deposits, and near-cash holdings in the Kenyan market
• Monthly statement updates are sent via email.

15. GenCap Hela Imara Fund (14.01%)

And capping off the list for the second consecutive month, we have the GenCap Hela Imara Fund. This fund posted an impressive average daily yield of 14.01%, bringing us, also, to the end of the list of MMFs that managed to surpass the 14% average daily yield threshold.

Key features of the GenCap Hela Imara Fund include:

• The minimum investment amount is KES 500. The minimum additional or top-up amount is KES 500.
• Capital Preservation: Investments are made in short-term, secure investments.
• Interest is computed, earned daily, and credited to the client’s account monthly.
• Management fee of 2% per year of funds under management.
• To sign up, download the G-Kuze app from Google Play or the Apple App Store, or dial *895#.