Throughout February, there was a persistent uptrend in money market fund rates, as evidenced by the average daily effective rate reaching 13.37% per annum, up from January’s average of 13% per annum. This escalation was primarily fueled by the increasing interest rates on government securities, a pivotal asset class for money market funds.
In terms of individual performance, Etica Money Market Fund led the pack with an impressive average daily yield of 15.95% per annum, followed closely by the Lofty Corban, Cytonn, Apollo, and GenAfrica Money Market Funds, showcasing daily average effective rates of 15.79%, 15.21%, 15.18%, and 14.72% per annum, respectively.
Daily Average Yields for MMFs in February
| NO. | FUND MANAGER | FUND NAME | AVERAGE (%) |
| 1 | Etica Capital Limited | Etica Money Market Fund | 15.95 |
| 2 | Lofty-Corban | Lofty-Corban Money Market Fund | 15.79 |
| 3 | Cytonn Asset Managers Limited | Cytonn Money Market Fund | 15.21 |
| 4 | Apollo Asset Management Company Limited | Apollo Money Market Fund | 15.18 |
| 5 | GenAfrica Asset Managers Limited | GenAfrica Money Market Fund | 14.72 |
| 6 | Nabo Capital Limited | Nabo Africa Money Market Fund | 14.66 |
| 7 | Kuza Asset Management Limited | Kuza Money Market Fund (KES) | 14.28 |
| 8 | Enwealth Financial Services | Enwealth Money Market Fund | 14.15 |
| 9 | Madison Investment Managers Limited | Madison Money Market Fund | 13.97 |
| 10 | Co-op Trust Investment Services Limited | Co-op Money Market Fund | 13.71 |
| 11 | Jubilee Financial Services Limited | Jubilee Money Market Fund | 13.64 |
| 12 | Genghis Capital | GenCap Hela Imara Fund | 13.62 |
| 13 | ABSA Bank | Absa Shilling Fund MMF | 13.58 |
| 14 | African Alliance | African Alliance Kenya Money Market Fund | 13.41 |
| 15 | Sanlam Investments East Africa Limited | Sanlam Money Market Fund | 13.06 |
1. Etica Money Market Fund (15.95%)
Etica Money Market Fund remains on its winning streak, amplifying its outstanding performance from January with an average daily yield of 15.95%.
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:
- 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. Lofty-Corban KSH Money Market Fund (15.79%)
Maintaining the second-place standing for the second month in succession is the Lofty-Corban KSH Money Market Fund, which boasted an average daily yield of 15.26%.
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.
3. Cytonn Money Market Fund (15.21%)
Cytonn MMF secures the third position, a notable improvement from its former sixth-place position, after recording an average daily yield of 15.21%. 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#
4. Apollo Money Market Fund (15.18%)
In fourth place is the Apollo Money Market Fund, a product of Apollo Asset Management Company Ltd., which delivered an impressive average effective daily yield of 15.18%, wrapping up the funds with an average daily yield surpassing 15%.
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.
5. GenAfrica Money Market Fund (14.72%)
GenAfrica MMF, once soaring, remains in the fifth-place position from the preceding month after recording an effective average daily yield of 14.72%.
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) (14.66%)
After losing two positions, Nabo Money Market Fund now sits in sixth place after posting an average effective daily yield rate of 14.66%. This fund has consistently shown remarkable growth over the past five 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. Kuza Money Market Fund (KES) (14.28%)
Ascending the ladder, Kuza Money Market Fund now stands one spot higher than its January rankings after boasting an average effective daily yield of 14.28%. 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
8. Enwealth Money Market Fund (14.15%)
Next on our rankings is the Enwealth Money Market Fund, a product of Enwealth Financial Services, which registered an average effective daily yield of 14.15% concluding the funds, providing an average daily yield of 14% and beyond.
9. Madison Money Market Fund (13.97%)
In 9th place, for the second time running this year, is Madison MMF, which delivered an effective average daily yield of 13.97%. 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
10. Co-op Money Market Fund (13.71%)
Coming in at number 10, we have the Co-op Money Market Fund. The fund recorded a daily average yield of 13.71%. 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.
11. Jubilee Money Market Fund (13.64%)
Coming up next in our rankings is Jubilee Money Market Fund, which posted an average daily yield of 13.64%, climbing from 14th to 11th place.
Key features of the Jubilee MMF include:
- Safety of initial capital.
- Monthly compounded interests.
- High liquidity.
12. GenCap Hela Imara Fund (13.62%)
GenCap Hela Imara Fund drops one place from January’s rankings after posting an impressive average daily yield of 13.62%.
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#.
13. Absa Shilling Fund MMF (13.58%)
The Absa Shilling Fund MMF recorded an average daily rate of 13.58% to claim thirteenth place. This fund is suitable for investors who seek a low-risk, high-interest portfolio, especially during times of high stock market volatility.
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:
- Interest is earned daily and compounded monthly
- Immediate liquidity
- Fee structure: Initial fee – 0%; annual management fee – 2% per annum
- Offers capital stability
- The fund invests in interest-bearing securities and other short-term money market instruments.
14. African Alliance Kenya Money Market Fund (13.41%)
Making its first appearance in our rankings this year is the African Alliance Money Market Fund (AAMMF), after delivering an average daily yield of 13.41%. 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)
15. Sanlam Money Market Fund (13.06%)
Last but not least is Sanlam MMF, which boasted an effective average daily yield of 13.06%. 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.
