Money market funds (MMFs) in Kenya offer a combination of liquidity, stability, and relatively high returns. They invest primarily in short-term government securities, high-quality commercial paper, and bank deposits. As interest rates rise, MMFs continue to deliver attractive yields compared to traditional fixed deposits and Treasury bills.
The table below presents the top MMFs based on annualized gross yield, fund size, and investor accessibility:
| Rank | MMF Name | Approx Annual Gross Yield (%) | Typical Net Return (%) | Fund Size (KSh) | Minimum Investment | Key Features / Investor Suitability |
|---|---|---|---|---|---|---|
| 1 | Cytonn Money Market Fund | 16.6 | 13–14 | 20B | 1,000 | High yields, daily compounding, quick withdrawals; ideal for retail investors seeking maximum return with liquidity. |
| 2 | GulfCap Money Market Fund | 16.3 | 12–13 | 15B | 1,000 | Consistent performance; suitable for medium-term savings; moderate risk tolerance. |
| 3 | Kuza Money Market Fund | 14.8 | 12 | 8B | 500 | Balanced yield and accessibility; good for short-term goals or emergency savings. |
| 4 | Etica Money Market Fund | 15.0 | 11.9 | 5B | 500 | Low minimum investment, flexible withdrawals; great for first-time investors. |
| 5 | Lofty Corban Money Market Fund | 15.2 | 11.9–12 | 3B | 1,000 | Solid yield, suitable for investors seeking slightly less aggressive options than top funds. |
| 6 | Sanlam Money Market Fund | 13–14 | 11.5 | 50B | 1,000 | Large fund with stability, lower volatility; ideal for institutional or larger investors. |
| 7 | CIC Money Market Fund | 12–13 | 11 | 68B | 1,000 | Largest MMF in Kenya; highly stable, suitable for large principal investments. |
Analysis and Insights
- Yield vs Stability
The highest-yielding funds (Cytonn and GulfCap) appeal to investors willing to take slightly higher volatility for better returns. Large funds like CIC and Sanlam provide lower yields but greater stability and reliability for large-scale investments. - Accessibility and Liquidity
Retail investors benefit from low minimums and digital access offered by funds like Etica, Kuza, and Cytonn. These funds allow withdrawals within 24–72 hours, making them suitable for short-term savings and emergency funds. - Investment Size Considerations
- Small savers: Etica, Kuza, Cytonn
- Medium-sized savings: GulfCap, Lofty Corban
- Large principal or institutional investors: CIC, Sanlam
- Market Context
Rising interest rates in Kenya’s economy in 2025 have increased MMF returns, making them competitive with short-term government securities. Investors looking for low-risk alternatives to fixed deposits and high-yield savings accounts are increasingly using MMFs as a primary short-term investment vehicle. - Tax and Fees Impact
Investors should note that gross yields are before management fees and withholding taxes. Net returns typically range from 12–14% for top-performing funds. Proper evaluation of fund statements and charges is essential to estimate effective returns.
Trends and Implications
- Digital Investment Platforms: MMFs increasingly allow easy access through mobile platforms, improving participation for small-scale investors.
- Growth in Fund Size: Top funds are growing in assets under management (AUM), indicating increased investor confidence and a shift toward institutional participation.
- Short-term Investment Vehicle: MMFs are increasingly used by businesses and retail investors to park cash temporarily while earning returns higher than traditional savings accounts.
Choosing the Right MMF
Retail Investors Seeking High Returns: Cytonn, Etica, Kuza
Medium-term Savings or Balanced Risk: GulfCap, Lofty Corban
Large Sums or Institutional Investors: CIC, Sanlam
The choice depends on liquidity needs, investment size, and risk tolerance. Combining funds with different profiles can diversify risk while optimizing returns.
Kenya’s MMFs remain a cornerstone for investors seeking liquidity and consistent returns. In November 2025, Cytonn and GulfCap lead in yields, while CIC and Sanlam provide stability for larger investors. With rising interest rates and improving fund management, MMFs continue to offer one of the most efficient short-term investment avenues in Kenya.
