Money market funds have generally increased their interest rates due to the increase in interest rates in short-term lending to the government through T-Bills.
In September 2023, the daily rate for money market funds was 11.25% p.a. In terms of returns, GenAfrica MMF had the highest return, with an average daily yield of 12.78% p.a. Followed by Cytonn MMF, Enwealth MMF, Apollo MMF, and Etica MMF with average daily yields of 12.68%, 12.57%, 12.52%, and 12.20%, respectively.
Interest rates offered by MMFs are not the only way to measure the performance of a money market fund. The Capital Market Authority (CMA) released the Q2 performance on collective investments and funds under management. The CIC Unit Trust scheme has the highest funds under management, followed by NCBA and Sanlam, respectively.
Here is a list of some considerations to make before selecting a money market fund as your savings vehicle:
- The experience and expertise of the fund manager,
- The automation of their processes and reporting,
- Liquidity: how easily you get your funds when withdrawing,
- Past performance: although past performance does not necessarily reflect future performance,
- Stability of the fund: how they have grown their funds under management and the number of clients
Daily Average Yields for MMFs in September
| NO. | Fund Manager | Fund Name | Daily Average Yield (%) |
| 1 | GenAfrica Asset Managers Limited | GenAfrica Money Market Fund | 12.78 |
| 2 | Cytonn Asset Managers Ltd. | Cytonn Money Market Fund | 12.68 |
| 3 | Enwealth Financial Services | Enwealth Money Market Fund | 12.57 |
| 4 | Apollo Asset Management Company Ltd. | Apollo Money Market Fund | 12.52 |
| 5 | Etica Capital Ltd. | Etica Money Market Fund | 12.20 |
| 6 | Lofty-Corban Investments Ltd. | Lofty-Corban KSH Money Market Fund | 12.06 |
| 7 | Madison Investment Managers Ltd. | Madison Money Market Fund | 11.97 |
| 8 | Jubilee Financial Services Ltd. | Jubilee Money Market Fund | 11.83 |
| 9 | Co-op Trust Investment Services Ltd. | Co-op Money Market Fund | 11.79 |
| 10 | Kuza Asset Management Ltd. | Kuza Money Market Fund (KES) | 11.53 |
| 11 | Genghis Capital | GenCap Hela Imara Fund | 11.25 |
| 12 | Sanlam Investments East Africa Ltd. | Sanlam Money Market Fund | 11.13 |
| 13 | Nabo Capital Limited | Nabo Africa Money Market Fund | 11.09 |
| 14 | Old Mutual Investment Group | Old Mutual Money Market Fund | 11.07 |
| 15 | Absa Asset Management Ltd. | Absa Shilling Fund MMF | 11.01 |
1. GenAfrica Money Market Fund (12.78%)
GenAfrica MMF maintained its top spot on the list as the best-performing money market fund in September with an average daily yield of 12.78%, recording an improvement from August.
Key features of the GenAfrica MMF include:
- No initial fees
- No limitations on withdrawal
- Easy sign-up and top-up via the GenAfrica Unit Trust portal
- Monthly statement updates via email
2. Cytonn Money Market Fund (12.68%)
Cytonn MMF made its way back to the top 3 after delivering an average daily yield of 12.68% to land in second place. For every new investor, you will require an initial minimum investment of KES 1000 and subsequent top-ups from as little as KES 100.
More features of Cytonn MMF include:
- Easy sign-up and top-up by dialing *809#
- Speedy withdrawals
- No entry or exit fee is charged
- Interest is earned daily and compounded monthly
3. Enwealth Money Market Fund (12.57%)
Enwealth Money Market Fund, a product of Enwealth Financial Services, has seen its ranking decline gradually, from previous months, landing in third place. This fund consistently delivered an average daily yield of 12.57%, making it an appealing choice for investors seeking steady and secure returns.
4. Apollo Money Market Fund (12.52%)
In fourth place is the Apollo Money Market Fund, which offered investors an attractive average daily yield of 12.52%. The fund recorded one of the most significant improvements from August.
Some of the features of Apollo MMF that stand out include:
- Initial minimum investment of KES 1,000 and KES 1,000 top-ups
- 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
- Top-ups can be made by cheques, cash deposit, standing order, or direct debit order.
5. Etica Money Market Fund (12.20%)
Etica Money Market Fund boasted an increase in both rankings and daily average yield offered to investors compared to August. The fund provided investors with an impressive average effective daily yield of 12.20%. For those considering to begin 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:
- There is 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.
6. Lofty-Corban KSH Money Market Fund (12.06%)
Lofty-Corban KSH Money Market Fund, which disrupted the industry in August, dropped in rankings despite recording an increase in the average effective daily yield recorded. The fund posted an average daily yield of 12.06%, closing out the funds offering an average daily yield of 12% and above.
Key features of Lofty-Corban KSH MMF are:
- Low minimum investment: you can invest as little as KES 1000
- Capital preservation: no loss of money invested
- Accessibility: funds are accessible at short notice
- Compounding: earn interest on interest
- The fund invests in interest-bearing instruments, including bank deposits, Treasury bills, and commercial papers
7. Madison Money Market Fund (11.97%)
Plateauing at seventh place for three months in a row now and just shy of the 12% average daily rate is Madison Money Market Fund, a product of Madison Investment Managers Ltd. The fund boasted an average daily yield of 11.97%. 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:
- There are no restrictions on tenor
- Withdrawals are processed within 72 working hours.
- Monthly distribution of interest
8. Jubilee Money Market Fund (11.83%)
Jubilee Money Market Fund clinged on to eighth place for the second consecutive month after posting an average daily yield of 11.83%.
Key features of the Jubilee MMF include:
- Safety of initial capital.
- Monthly compounded interests.
- High liquidity.
9. Co-op Money Market Fund (11.79%)
In 9th place is Co-op Money Market Fund which delivered a daily average yield of 11.79%. This 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:
- Allows M-pesa deposits.
- Access your money within 2–3 business days.
- Management fees of 0.9%.
- Funds are invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits.
10. Kuza Money Market Fund (KES) (11.53%)
Kuza Money Market Fund registered an average effective daily yield of 11.53% to join the funds that maintained their rankings from August. 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 call and fixed deposits
11. GenCap Hela Imara Fund (11.25%)
GenCap Hela Imara Fund, a product of Genghis Capital Ltd., secures the eleventh spot after boasting an average daily yield of 11.25% to make its way back into the rankings.
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.
- To sign up, download the G-Kuze App from Google Play or the Apple App Store or dial *895#.
- Interest is computed and earned daily and credited to the client’s account monthly.
- Capital Preservation: Investments are made in short-term, secure investments.
- Management fee of 2% per annum of funds under management.
12. Sanlam Money Market Fund (11.13%)
Coming in twelfth is Sanlam Money Market Fund which recorded an average effective daily yield of 11.13%. 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:
- Capital retention
- Easy liquidity
- No initial fees are charged; it is free to set up an account
- 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.
13. Nabo Money Market Fund (KES) (11.09%)
Next on our list is Nabo Money Market Fund which posted an average daily yield of 11.09% to break back into the rankings after missing out in the previous month. Investors 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:
- High liquidity.
- Investment period of at least 3 months to allow optimal returns.
- Interest is earned daily and compounded monthly.
- Zero initial and redemption fees
- Funds are invested in short-term debt securities and instruments.
14. Old Mutual Money Market Fund (11.07%)
Old Mutual Money Market Fund continued on its decline to move into fourteenth place. The fund provided investors with a daily yield of 11.07%. Every new investor in the fund will require an initial investment of KES 1,000 and at least KES 1,000 in subsequent top-ups.
Other standout features of Old Mutual MMF include:
- Quick mobile sign-up by simply dialing *480#
- Provides return without penalties
- Capital stability
- Freedom to switch investments between different funds
- Easy liquidity
- Funds invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits
15. Absa Shilling Fund MMF (11.01%)
Making a debut on our rankings is the Absa Shilling Fund MMF, a product of Absa Asset Management Ltd., which recorded an average daily yield of 11.01%. This fund is suitable for investors who seek 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 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.
