About 24 licensed Fund Managers are actively reporting and running Money Market Funds as of the end of August. Over the last two months, a new player, Lofty Corban Money Market Fund, has entered the market. Another eye-catching update that deserves mention is Zimele Money Market Fund changing its name to Zimele Fixed Income Fund.
In August 2023, GenAfrica Money Market Fund was the best-performing MMF with an average daily yield of 11.79%. Followed closely by Enwealth Money Market Fund, Lofty Corban KSH Money Market Fund, Cytonn Money Market Fund, and Zimele Fixed Income Fund, with average daily yields of 11.73%, 11.71%, 11.68%, and 11.65%, respectively.
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.
|No.||Fund Manager||Fund Name||Daily Average rate %|
|1||GenAfrica Asset Managers Limited||GenAfrica Money Market Fund||11.789|
|2||Enwealth Financial Services||Enwealth Money Market Fund||11.728|
|3||Lofty-Corban Investments Ltd.||Lofty-Corban KSH Money Market Fund||11.712|
|4||Cytonn Asset Managers Ltd.||Cytonn Money Market Fund||11.681|
|5||Zimele Asset Management||Zimele Fixed Income Fund Market Fund||11.652|
|6||Etica Capital Ltd.||Etica Money Market Fund||11.589|
|7||Madison Investment Managers Ltd.||Madison Money Market Fund||11.342|
|8||Jubilee Financial Services Ltd.||Jubilee Money Market Fund||11.253|
|9||Apollo Asset Management Company Ltd.||Apollo Money Market Fund||11.031|
|10||Kuza Asset Management Ltd.||Kuza Money Market Fund (KES)||10.973|
|11||Sanlam Investments East Africa Ltd.||Sanlam Money Market Fund||10.768|
|12||Old Mutual Investment Group||Old Mutual Money Market Fund||10.745|
|13||African Alliance||African Alliance Kenya Money Market Fund||10.684|
|14||Co-op Trust Investment Services Ltd.||Co-op Money Market Fund||10.612|
|15||ICEA Asset Lion Asset Management Ltd.||ICEA Lion Money Market Fund||10.567|
1. GenAfrica Money Market Fund (11.789%)
GenAfrica MMF tops the list as the best-performing money market fund in August with an average daily yield of 11.789%, recording a significant improvement from July.
Some of the key features of GenAfrica MMF include:
- Easy sign-up and top-up via the GenAfrica Unit Trust portal
- No initial fees
- Monthly statement updates via email
- No limitations on withdrawal
2. Enwealth Money Market Fund (11.728%)
Just shy of the top spot is Enwealth Money Market Fund. This fund has consistently delivered an average daily yield of 11.728%, making it an appealing choice for investors seeking steady and secure returns.
3. Lofty-Corban KSH Money Market Fund (11.712%)
The new kid in the block, Lofty-Corban KSH Money Market Fund, a product of Lofty-Corban Investments Ltd., took the industry by storm, quickly securing the 3rd spot after recording an impressive average effective daily yield of 11.712%.
Key features of Lofty-Corban KSH MMF are:
- Low minimum investment – you can invest as low as KES 1000
- Capital preservation – no loss of money invested
- Accessibility – funds are accessiible at short notice
- Compounding – earn interest on interest
- Fund invests in interest-bearing instruments including bank deposits, Treasury bills, and commercial papers
4. Cytonn Money Market Fund (11.681%)
Despite recording an increase in the average daily rate, Cytonn MMF experienced a drop in rankings. The fund delivered an average daily yield of 11.681%. For a new investor, you will require an initial minimum investment of KES 1000 and subsequent top-ups from as low as KES 100.
More features of Cytonn MMF include:
- Speedy withdrawals
- No entry or exit fee is charged
- Interest is earned daily and compounded monthly
- Easy sign-up and top-up by dialing *809#
5. Zimele Fixed Income Fund (11.652%)
Formerly known as Zimele Money Market Fund, Zimele Fixed Income Fund maintained its upward trajectory from August to land in fifth place, offering investors an average daily yield of 11.652%. If you’re looking to start your investment journey with the fund, you will need a minimum investment of KES 100 and subsequent top-ups of KES 100 to invest in the fund.
More features of this fund include:
- Funds are invested in low-risk, interest-yielding assets like bank deposits, Treasury bills, and Treasury bonds.
- Flexible and quick withdrawal of 2-4 working days
- Allows reinvestment of returns
- No hidden charges.
- Provision of online statements.
6. Etica Money Market Fund (11.589%)
Etica Money Market Fund, a product of Etica Capital Limited, experienced a notable fall in rankings from July. The fund provided investors with an average effective daily yield of 11.589%. For those considering options to begin their investment journey with this fund, you will require an initial minimum investment of KES 100 and top-ups of KES 100.
More features of Etica MMF are:
- High liquidity
- No lock-in period
- 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
7. Madison Money Market Fund (11.342%)
Staying put in seventh place is Madison Money Market Fund, which recorded an average daily yield of 11.342%. If you’re a novice investor in this fund, you will need an initial minimum investment of KES 5,000 and KES 1,000 top-ups.
More notable features of Madison MMF include:
- Withdrawals are processed within 72 working hours.
- Monthly distribution of interest.
- No restrictions on tenor.
8. Jubilee Money Market Fund (11.253%)
After securing the sixth position for two consecutive months, Jubilee Money Market Fund slips to eighth place posting an average daily yield of 11.253%.
Key features of the Jubilee MMF include:
- High liquidity.
- Safety of initial capital.
- Monthly compounded interests.
9. Apollo Money Market Fund (11.031%)
In ninth place is Apollo Money Market Fund that offered investors an average daily yield of 11.031%, closing out the funds offering an average daily yield of 11% and above.
Some of the features of Apollo MMF that stand out include:
- Initial minimum investment of KES 1,000 and KES 1,000 top-ups
- Invests in low-risk investments with an element of guaranteed returns, such as fixed deposits, T-bills, commercial paper, government and corporate bonds
- Top-ups can be made by cheques, cash deposit, standing order, or direct debit order
10. Kuza Money Market Fund (KES) (10.973%)
Making it to the top ten but just barely, we have Kuza Money Market Fund, a product of Kuza Asset Management Ltd. The fund registered an average effective daily yield of 10.973%. The initial minimum investment for new investors is KES 5,000 and subsequent KES 1,000 top-ups.
Other features of Kuza MMF include:
- High liquidity
- Preservation of capital
- Fund invests in short-term KES-dominated interest-bearing securities such as T-bills, corporate bonds, commercial paper, bank call and fixed deposits
11. Sanlam Money Market Fund (10.768%)
Just outside the top 10, securing the eleventh spot is Sanlam Money Market Fund which boasted an average effective daily yield of 10.768%. 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 Sanlam MMF include:
- No initial fees are charged – free to set up an account
- Easy liquidity
- Interest is calculated daily and compounded monthly
- Capital retention
- Funds are invested in high-quality interest-bearing assets, fixed deposits, and near cash holdings in the Kenyan market
12. Old Mutual Money Market Fund (10.745%)
Old Mutual Money Market Fund lost ground, sliding down to twelfth place from its previous ninth position. The fund provided investors with a daily yield of 10.745%. Every new investor with the fund will require an initial investment of KES 1,000 and at least KES 1,000 subsequent top-ups.
Other standout features of Old Mutual MMF include:
- Quick mobile sign-up by simply dialing *480#
- Easy liquidity
- Freedom to switch investments between different funds
- Capital stability
- Provides return without penalties
- Funds invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits
13. African Alliance Kenya Money Market Fund (10.684%)
Continuing its presence in the list at thirteenth place is African Alliance Money Market Fund (AAMMF) after delivering an average daily yield of 10.684%. The minimum initial investment to kickstart your investment journey in the fund is KES 100,000 with no limit on subsequent top-ups.
Other key features of AAK Money Market Fund include:
- No entry charges
- Does not incur any tax liabilities – All income earned by the Fund is distributed to unit holders and taxable in their hands in accordance with their individual tax status
- Funds are invested in Treasury bills by the Kenyan government, among other securities such as banker’s acceptance, commercial papers, and bank deposits with a short-term maturity (less than 13 months)
14. Co-op Money Market Fund (10.612%)
In 14th place is Co-op Money Market Fund, a product of Co-op Trust Investment Services Ltd., which posted an average effective daily yield of 10.612%. This fund continues to remain a go-to option amongst investors in the market. 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 invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits.
15. ICEA Lion Money Market Fund (10.567%)
Stepping into the spotlight for the first time on our rankings is ICEA Lion Money Market Fund, which boasted an average daily yield of 10.567%. You will need an initial minimum investment of KES 500 to start investing with ICEA Lion MMF and top-up with whatever amount you wish to save or invest at any time.
Other notable features of ICEA Lion MMF include:
- Interest is earned daily and compounded monthly
- Liquidity – for amounts less than KES 10,000 via mobile money, you can access your funds under 24 hours, whilst those above KES 10,000 can be sent to your bank account within 3 working days
- Save for your different goals using one platform via the DigiTrust portal and track all your progress under one dashboard
- This fund invests primarily in interest bearing assets liked fixed deposits and short-term bonds