In October 2023, the daily average rate for money market funds was 11.86% p.a., up from 11.25% in September.
In terms of individual returns, Genafrica MMF had the highest return, with an average daily yield of 13.63% p.a. Followed by Cytonn MMF, Enwealth MMF, Apollo MMF, and Etica MMF, which recorded average daily yields of 13.46%, 13.24%, 13.10%, and 13.03%, respectively.
There were no major shifts in rankings experienced compared to September.
The noteworthy mention was Mayfair Money Market Fund making an entrance into the market as of September 2023, bringing the number of reporting money market funds to 25.
So, why should you invest in a money market fund? There are several reasons why people choose to invest in money market funds:
- High liquidity: MMFs are highly liquid, meaning that investors can easily access their money when they need it. This is because MMFs typically allow investors to redeem their shares at any time, with most offering one free withdrawal per month.
- Low risk: MMFs are generally considered to be very low-risk investments. This is because they invest in short-term debt securities issued by governments and corporations with good credit ratings.
- Competitive returns: MMFs typically offer competitive returns, especially compared to other low-risk investments such as savings accounts.
- Diversification: MMFs can help you diversify your investment portfolio by investing in a variety of different assets.
Daily Average Yield for MMFs in October
| NO. | Fund Manager | MMF | Daily Average Yield% |
| 1 | GenAfrica Asset Managers Limited | GenAfrica Money Market Fund | 13.63 |
| 2 | Cytonn Asset Managers Limited | Cytonn Money Market Fund | 13.46 |
| 3 | Enwealth Financial Services | Enwealth Money Market Fund | 13.24 |
| 4 | Apollo Asset Management Company Limited | Apollo Money Market Fund | 13.10 |
| 5 | Etica Capital Limited | Etica Money Market Fund | 13.03 |
| 6 | Zimele Asset Management | Zimele Fixed Income Fund | 12.73 |
| 7 | Lofty-Corban | Lofty-Corban Money Market Fund | 12.70 |
| 8 | Madison Investment Managers Limited | Madison Money Market Fund | 12.41 |
| 9 | Jubilee Financial Services Limited | Jubilee Money Market Fund | 12.32 |
| 10 | Co-op Trust Investment Services Limited | Co-op Money Market Fund | 12.22 |
| 11 | Kuza Asset Management Limited | Kuza Money Market Fund (KES) | 12.01 |
| 12 | Nabo Capital Limited | Nabo Africa Money Market Fund | 12.01 |
| 13 | African Alliance | African Alliance Kenya Money Market Fund | 11.91 |
| 14 | Genghis Capital | GenCap Hela Imara Fund | 11.89 |
| 15 | Sanlam Investments East Africa Limited | Sanlam Money Market Fund | 11.75 |
1. GenAfrica Money Market Fund (13.63%)
GenAfrica MMF, a product of GenAfrica Asset Managers Limited, continued to set the standard for performance among money market funds for the third consecutive month after recording an impressive average daily yield of 13.63%.
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.
2. Cytonn Money Market Fund (13.46%)
Cytonn MMF held their ground in second place since September after delivering an average daily yield of 13.46%. 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 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#
3. Enwealth Money Market Fund (13.24%)
Defending its third-place standing is Enwealth Money Market Fund after consistently delivering an average daily yield of 13.24%, to round up the top 3 best-performing money market funds in October.
4. Apollo Money Market Fund (13.10%)
In fourth place, we have the Apollo Money Market Fund, which offered investors an attractive average daily yield of 13.10%.
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
- Fund invest in low-risk investments with an element of guaranteed returns, such as fixed deposits, T-bills, commercial paper, government bonds, and corporate bonds.
5. Etica Money Market Fund (13.03%)
Etica Money Market Fund, a product of Etica Capital Ltd., boasted an impressive average effective daily yield of 13.03%. 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 Etica MMF are:
- High liquidity of funds
- There is 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.
6. Zimele Fixed Income Fund (12.73%)
Zimele Fixed Income Fund (formerly known as Zimele Money Market Fund) makes its comeback to the rankings to claim sixth spot after offering investors an average daily yield of 12.73%. 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.
7. Lofty-Corban KSH Money Market Fund (12.70%)
Dropping into seventh place is Lofty-Corban KSH Money Market Fund after recording an average daily yield of 12.70%.
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.
8. Madison Money Market Fund (12.41%)
In eighth place is Madison Money Market Fund that boasted an average daily yield of 12.41%. 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
- There are no restrictions on tenor.
9. Jubilee Money Market Fund (12.32%)
Jubilee Money Market Fund, a product of Jubilee Financial Services Ltd., dropped one place in rankings to land in ninth spot after posting an average daily yield of 12.32%.
Key features of the Jubilee MMF include:
- Safety of initial capital
- Monthly compounded interests
- High liquidity.
10. Co-op Money Market Fund (12.22%)
Currently in the tenth spot is the Co-op Money Market Fund, which delivered a daily average yield of 12.22%. Although the fund’s ranking took a hit since September, the fund continues to remain a go-to option among 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 are invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits.
11. Kuza Money Market Fund (KES) (12.01%)
Just outside of the top 10 is Kuza Money Market Fund which registered an average effective daily yield of 12.01%. 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
- Fund invests in short-term KES-dominated interest-bearing securities such as T-bills, corporate bonds, commercial paper, bank calls, and fixed deposits
12. Nabo Money Market Fund (KES) (12.01%)
Closing out the funds offering an average daily yield of 12% and above is Nabo MMF, a product of Nabo Capital Limited. The fund posted an average effective daily yield rate of 12.01%. For new investors in the fund, you will require an initial minimum investment of KES 100,000 and top-ups of KES 10,000 to invest in the fund.
Other notable features of this fund include:
- Zero initial and redemption fees
- High liquidity
- Investment period of at least 3 months to allow optimal returns
- Interest is earned daily and compounded monthly
- Funds are invested in short-term debt securities and instruments.
13. African Alliance Kenya Money Market Fund (11.91%)
African Alliance Money Market Fund (AAMMF) regained a spot on the list after delivering an average daily yield of 11.91%. 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)
14. GenCap Hela Imara Fund (11.89%)
After experiencing a 3-place drop from September, GenCap Hela Imara Fund lands in fourteenth spot after boasting an average daily yield of 11.89%.
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 (11.75%)
Wrapping up the list is Sanlam Money Market Fund, which recorded an average effective daily yield of 11.75%. The fund is a product of Sanlam Investments East Africa Ltd., which boasts one of the highest funds under management. 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; 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 via email.
