Investing in money market funds (MMFs) is one of the most popular and accessible ways for Kenyans to grow their savings. Money market funds are collective investment schemes that pool money from multiple investors to purchase short-term, low-risk financial instruments such as Treasury bills, government bonds, and high-quality commercial paper. These funds offer a balance between risk and return, making them an attractive option for conservative investors.
In this article, we explore the top 10 money market funds in Kenya for 2024, offering insights into their performance, benefits, and why they stand out in a crowded market.
1. CIC Money Market Fund
The CIC Money Market Fund is among the most well-known and widely invested funds in Kenya. Managed by CIC Asset Management, the fund is ideal for investors seeking liquidity, capital preservation, and competitive returns.
- Minimum Investment: Ksh. 5,000
- Annual Yield: Around 8% – 10%
- Features: High liquidity, easy access via mobile platforms, and regular income distributions make it a popular choice among retail and institutional investors.
- Why Choose CIC? CIC’s reputation for stability and its large asset base provide confidence to investors looking for a safe harbor for their funds.
2. Britam Money Market Fund
Britam Asset Managers, a subsidiary of Britam Holdings, offers the Britam Money Market Fund, which has consistently delivered solid returns over the years.
- Minimum Investment: Ksh. 1,000
- Annual Yield: 8% – 9%
- Features: Daily accrual of interest, no entry or exit fees, and the convenience of managing your investment online.
- Why Choose Britam? Britam’s fund is known for its transparency and excellent customer service, making it a reliable option for both new and seasoned investors.
3. Sanlam Money Market Fund
Sanlam Investments, part of the global Sanlam Group, provides a well-regarded money market fund in Kenya. The fund is tailored to individuals and institutions looking for a secure investment with competitive returns.
- Minimum Investment: Ksh. 2,500
- Annual Yield: 7.5% – 9%
- Features: Offers easy access to funds and is supported by the financial strength and global expertise of the Sanlam Group.
- Why Choose Sanlam? Sanlam’s fund is a top choice for investors seeking security, thanks to its robust risk management framework.
4. Zimele Money Market Fund
Zimele Asset Management Company is renowned for its low entry barrier and high transparency, making it a favorite among small and medium investors.
- Minimum Investment: Ksh. 100
- Annual Yield: 7% – 8%
- Features: Highly affordable, with no entry fees and a user-friendly online portal for tracking investments.
- Why Choose Zimele? Zimele’s fund is perfect for first-time investors or those with smaller amounts to invest, offering a great way to start investing with minimal risk.
5. NCBA Money Market Fund
The NCBA Money Market Fund, managed by NCBA Investment Bank, is a strong contender in the Kenyan market, known for its stability and consistent returns.
- Minimum Investment: Ksh. 5,000
- Annual Yield: 8% – 10%
- Features: Offers a solid track record, easy withdrawal options, and regular income distributions.
- Why Choose NCBA? NCBA’s robust banking infrastructure and strong brand presence provide added assurance to investors.
6. Co-op Money Market Fund
Co-op Trust Investment Services, a subsidiary of Co-operative Bank, manages the Co-op Money Market Fund, which is designed for investors seeking a reliable and well-performing fund.
- Minimum Investment: Ksh. 5,000
- Annual Yield: 7% – 8%
- Features: Offers competitive returns, easy access to funds, and the strength of the Co-op Bank network.
- Why Choose Co-op? Co-op’s fund is backed by the financial stability of one of Kenya’s largest banks, making it a safe choice for risk-averse investors.
7. Madison Money Market Fund
Madison Asset Management, part of Madison Group, offers the Madison Money Market Fund, which is geared towards providing secure and consistent returns.
- Minimum Investment: Ksh. 5,000
- Annual Yield: 7.5% – 8.5%
- Features: Low management fees, quick access to funds, and strong customer support.
- Why Choose Madison? Madison’s focus on low-risk investments and its strong performance history make it a reliable option for investors seeking steady growth.
8. ICEA Lion Money Market Fund
ICEA Lion Asset Management is a well-established player in Kenya’s investment landscape, and its money market fund is one of the most popular.
- Minimum Investment: Ksh. 5,000
- Annual Yield: 8% – 9%
- Features: High liquidity, no entry or exit fees, and strong online access for managing your portfolio.
- Why Choose ICEA Lion? ICEA Lion’s fund offers competitive returns and the reliability of one of Kenya’s oldest and most trusted financial institutions.
9. Old Mutual Money Market Fund
Old Mutual Investment Group, a subsidiary of Old Mutual Kenya, provides a reputable money market fund that is well-regarded for its stability and performance.
- Minimum Investment: Ksh. 1,000
- Annual Yield: 7.5% – 8.5%
- Features: Strong financial backing, easy access to funds, and regular income distributions.
- Why Choose Old Mutual? Old Mutual’s long-standing reputation in the financial industry gives investors confidence in the fund’s ability to deliver consistent returns.
10. Genghis Capital Money Market Fund
Genghis Capital, known for its innovative financial solutions, offers a money market fund that appeals to both retail and institutional investors.
- Minimum Investment: Ksh. 1,000
- Annual Yield: 8% – 9%
- Features: Daily compounding of interest, ease of access to funds, and robust customer support.
- Why Choose Genghis Capital? Genghis Capital’s fund is ideal for investors looking for competitive returns with the flexibility of easy withdrawals and reinvestment options.
Conclusion
Money market funds in Kenya offer a diverse range of options to suit different investment needs. Whether you are a conservative investor looking for capital preservation or someone seeking regular income, these top 10 funds provide reliable avenues to grow your savings. Before investing, it is essential to consider the fund’s management, fees, and past performance to ensure it aligns with your financial goals.
For those new to investing, starting with a smaller amount in a well-established fund like Zimele or Old Mutual can provide a solid foundation. More experienced investors might look towards higher-yielding options like CIC or Britam to maximize their returns. Whatever your choice, these funds are among the best in the Kenyan market for 2024.
