Top 15 Money Market Funds in Kenya: May 2024

In the Q1 Collective Investment Schemes report by the Capital Markets Authority (CMA), money market funds’ Assets Under Management (AUM) grew by 6%, rising from Kshs. 140 billion in December 2023 to Kshs. 148 billion in March 2024.

This growth is driven by the introduction of new market entrants who are gaining traction and the digitization of financial products, which have made investing more accessible and convenient, attracting a broader and more tech-savvy investor base.

Hongera to Lofty Corban and Kuza Money Market Funds, who reached the KES 1 billion AUM milestone!

There has been a consistent upward trend in money market fund rates, with the average daily effective rate increasing to 14.16% p.a., up from April’s average of 14.11% p.a.

Lofty Corban Money Market Fund topped the table with an average daily yield of 16.94% p.a., followed by Etica, Cytonn, Apollo, and Kuza Money Market Funds, with daily average effective rates of 16.65%, 15.94%, 15.92%, and 15.52% p.a., respectively.

Daily Average Yields for MMFs in May

1. Lofty-Corban KSH Money Market Fund (16.94%)

Proving its consistency, the Lofty-Corban KSH Money Market Fund has secured the number one position as the best-performing MMF for the second month running. This is after the fund delivered an average effective daily yield of 16.94%.

Notably, the Lofty-Corban Money Market Fund has also reached the impressive milestone of KES 1 billion in AUM!

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 (16.65%)

Etica Money Market Fund remains in the second-place spot this May, after its noteworthy three-month run at the top concluded in March. The fund recorded a daily average yield of 16.65%. With that, we’ve reached the end of our list of MMFs that managed to exceed the impressive 16% average daily yield benchmark in May.

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. Cytonn Money Market Fund (15.94%)

With an average daily return of 15.94%, Cytonn MMF has moved up one place from its April position to secure third spot.

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#

4. Apollo Money Market Fund (15.92%)

Apollo MMF, which ranked in the top 3 last month, has now slipped out despite maintaining an average daily return of 15.92%

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. Kuza Money Market Fund (KES) (15.52%)

At number 5, there’s Kuza Money Market Fund, managed by Kuza Asset Management Limited, which posted an average effective daily yield of 15.52%.

Notably, the Kuza Money Market Fund has also reached the impressive milestone of KES 1 billion in AUM!

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

6. GenAfrica Money Market Fund (15.40%)

This month, GenAfrica Money Market Fund finds itself in sixth place, a position it has alternated with fifth place in recent months. The fund boasted an impressive average effective daily yield of 15.40%.

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

7. Nabo Money Market Fund (KES) (15.27%)

Next in our rankings is the Nabo Money Market Fund, which delivered an impressive average daily yield of 15.27%. Here, we wrap up our overview of MMFs that surpassed the significant 15% average daily yield mark in May.

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

8. Enwealth Money Market Fund (14.94%)

For the second month straight, Enwealth MMF, a product of Enwealth Financial Services, lands in 8^th place after registering an average daily return of 14.94%.

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 (14.55%)

With an average daily yield of 14.55%, Madison Money Market Fund maintains its position in ninth place.

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 (14.49%)

KCB Money Market Fund secures tenth place for the second consecutive month after posting an average effective annual yield of 14.49%. 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. Jubilee Money Market Fund (14.44%)

In eleventh place is the Jubilee Money Market Fund which boasted an average effective daily yield of 14.44%.

Key features of the Jubilee MMF include:

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

12. Co-op Money Market Fund (14.40%)

For investors seeking high returns, the Co-op Money Market Fund remains a top contender, delivering an average daily yield of 14.40% and securing the 12^th position.

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. Absa Shilling Fund MMF (14.28%)

Falling one place from its April standing, Absa Shilling Fund MMF has landed in thirteenth place, despite posting a solid 14.28% average daily return.

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.

14. GenCap Hela Imara Fund (14.24%)

GenCap Hela Imara Fund maintained a strong performance with a 14.24% average daily yield, to move up into 14^th spot.

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#.

15. Sanlam Money Market Fund (14.09%)

Sanlam Money Market Fund closes our top 15 ranking after delivering an impressive average daily yield of 14.09%. 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.