In December, the average daily rate for money market funds increased to 12.51% per annum, up from November’s 12.06%. The recent surge can be traced back to the soaring interest rates in government securities, a significant underlying asset class for money market funds.
In terms of individual yields, Etica Money Market Fund recorded the highest performance, recording an average daily yield of 14.81% per annum. Following closely were the Cytonn Money Market Fund, Apollo MMF, GenAfrica MMF, and Lofty Corban Money Market Fund, with respective average daily yields of 14.42%, 14.31%, 14.29%, and 14.27%.
Daily Average Yields for MMFs in December
| NO. | Fund Manager | Fund Name | DAILY AVERAGE YIELD (%) |
| 1 | Etica Capital Limited | Etica Money Market Fund | 14.81 |
| 2 | Cytonn Asset Managers Limited | Cytonn Money Market Fund | 14.42 |
| 3 | Apollo Asset Management Company Limited | Apollo Money Market Fund | 14.31 |
| 4 | GenAfrica Asset Managers Limited | GenAfrica Money Market Fund | 14.29 |
| 5 | Lofty-Corban | Lofty-Corban Money Market Fund | 14.27 |
| 6 | Nabo Capital Limited | Nabo Africa Money Market Fund | 14.11 |
| 7 | Sanlam Investments East Africa Limited | Sanlam Money Market Fund | 13.57 |
| 8 | Enwealth Financial Services | Enwealth Money Market Fund | 13.49 |
| 9 | Zimele Asset Management | Zimele Fixed Income Fund | 13.22 |
| 10 | Madison Investment Managers Limited | Madison Money Market Fund | 13.05 |
| 11 | African Alliance | African Alliance Kenya Money Market Fund | 12.86 |
| 12 | Co-op Trust Investment Services Limited | Co-op Money Market Fund | 12.81 |
| 13 | Kuza Asset Management Limited | Kuza Money Market Fund (KES) | 12.78 |
| 14 | Jubilee Financial Services Limited | Jubilee Money Market Fund | 12.77 |
| 15 | Genghis Capital | GenCap Hela Imara Fund | 12.52 |
1. Etica Money Market Fund (14.81%)
Outperforming the competition with the highest daily average yield recorded in December is the Etica Money Market Fund, which boasted an average daily yield of 14.81%.
For those considering beginning their investment journey with this fund, you will require an initial minimum investment of KES 100 and top-ups of KES 100 only.
More features of the Etica MMF are:
- No lock-in period
- High liquidity of funds
- 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.
2. Cytonn Money Market Fund (14.42%)
Cytonn MMF secured the runner-up position in this month’s rankings, moving one place higher than its previous standing, after delivering an average daily yield of 14.42%. For every new investor, 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:
- 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#
3. Apollo Money Market Fund (14.31%)
Landing in third place is Apollo Money Market Fund (14.31%), rising from its fourth-place standing over the past quarter.
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. GenAfrica Money Market Fund (14.29%)
After an illustrious four-month reign as the best-performing money market fund in the market, GenAfrica MMF descends to fourth place despite recording an increase in the average daily rate recorded over the month. The fund delivered an attractive average effective daily yield of 14.29%.
Key features of the GenAfrica MMF include:
- No initial fees
- No limitations on withdrawal
- Monthly statement updates via email
- Easy sign-up and top-up via the GenAfrica Unit Trust portal
5. Lofty-Corban KSH Money Market Fund (14.27%)
The fifth position remains occupied by Lofty-Corban KSH Money Market Fund versus last month, after delivering an average daily yield of 14.27%.
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.
6. Nabo Money Market Fund (KES) (14.11%)
In sixth place and closing out the funds offering an average daily yield of 14% and above is the Nabo Money Market Fund after posting an average effective daily yield rate of 14.11%. Charting a course of unwavering prosperity, this fund has consistently shown remarkable growth over the past four months, a testament to its financial acumen.
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. Sanlam Money Market Fund (13.57%)
In a display of undeniable excellence, Sanlam MMF secures the seventh spot with a remarkable rise in rankings from the 12th rank recorded in November. The fund boasted an impressive average effective daily yield of 13.57%. The fund is a product of Sanlam Investments East Africa Ltd., which boasts one of the highest funds under management (AUM).
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.
8. Enwealth Money Market Fund (13.49%)
Formerly sixth, Enwealth Money Market Fund, a product of Enwealth Financial Services, has slipped to eighth place after consistently delivering an average daily yield of 13.49%.
9. Zimele Fixed Income Fund (13.22%)
Back in the rankings, Zimele Fixed Income Fund claimed the ninth spot after offering investors an average daily yield of 13.22%. 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:
- Allows reinvestment of returns
- Flexible and quick withdrawal of 2-4 working days
- No hidden charges
- Provision of online statements
- Funds are invested in low-risk, interest-yielding assets like bank deposits, Treasury bills, and Treasury bonds.
10. Madison Money Market Fund (13.05%)
Madison Money Market Fund lands in tenth place with an average daily yield of 13.05%. 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:
- No restrictions on tenor
- Withdrawals are processed within 72 working hours
- Monthly distribution of interest
11. African Alliance Kenya Money Market Fund (12.86%)
Dropping one spot from November to claim eleventh place is the African Alliance Money Market Fund (AAMMF), after delivering an average daily yield of 12.86%. 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 the 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)
12. Co-op Money Market Fund (12.44%)
In the 12th spot, we have Co-op Money Market Fund. The fund delivered a daily average yield of 12.44%. 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.
13. Kuza Money Market Fund (KES) (12.78%)
Next on our rankings is Kuza Money Market Fund, a product of Kuza Asset Management Ltd., which registered an average effective daily yield of 12.78%. The initial minimum investment for new investors is KES 5,000, with subsequent KES 1,000 top-ups.
Other features of Kuza MMF include:
- High liquidity
- Preservation of capital
- The fund invests in short-term KES-dominated interest-bearing securities such as T-bills, corporate bonds, commercial paper, bank calls, and fixed deposits
14. Jubilee Money Market Fund (12.77%)
Jubilee Money Market Fund drops five positions from November’s‘ ranking to land in fourteenth place after posting an average daily yield of 12.77%.
Key features of the Jubilee MMF include:
- Safety of initial capital
- High liquidity
- Monthly compounded interests
15. GenCap Hela Imara Fund (12.52%)
GenCap Hela Imara Fund lands in fifteenth place, rounding out the list after boasting an impressive average daily yield of 12.52%.
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#.
