Money Market Funds (MMFs) have become a preferred choice for many Kenyans seeking to grow their savings with minimal risk while enjoying higher returns than traditional savings accounts. With a growing number of Money Market Funds available in Kenya, choosing the right one can be overwhelming. This article provides a detailed comparison of the top 10 Money Market Funds in Kenya, helping you make an informed decision based on factors such as returns, fees, liquidity, and more.
1. CIC Money Market Fund
The CIC Money Market Fund is one of the most popular MMFs in Kenya, known for its competitive returns and strong management. CIC Asset Management, a subsidiary of CIC Group, manages the fund. The fund invests in short-term government securities, commercial paper, and fixed deposits, ensuring a diversified and low-risk portfolio. The fund’s annualized return has consistently been around 8% to 10%, making it an attractive option for both retail and institutional investors. Additionally, the fund offers high liquidity, with investors able to access their funds within 48 hours.
Key Features:
- Annualized Return: 8% – 10%
- Minimum Investment: KES 5,000
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
2. Sanlam Money Market Fund
Sanlam Kenya, part of the larger Sanlam Group, manages the Sanlam Money Market Fund. This fund has built a reputation for stability and reliability, offering consistent returns that typically range between 7% and 9% per annum. The fund’s portfolio includes government securities, fixed deposits, and corporate bonds. Sanlam’s strong global presence and local expertise make this MMF a preferred choice for many investors looking for a balance between security and returns.
Key Features:
- Annualized Return: 7% – 9%
- Minimum Investment: KES 2,500
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
3. Co-op Money Market Fund
The Co-op Money Market Fund, managed by Co-op Trust Investment Services, is another top contender in Kenya’s MMF space. This fund is particularly popular among Co-operative Bank account holders, as it offers seamless integration with their banking services. The fund invests in high-quality short-term instruments such as Treasury bills, fixed deposits, and corporate bonds. With returns averaging 7% to 9% annually, the Co-op Money Market Fund is a solid option for conservative investors seeking stable growth.
Key Features:
- Annualized Return: 7% – 9%
- Minimum Investment: KES 5,000
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
4. Britam Money Market Fund
Britam Asset Managers manage the Britam Money Market Fund, which is one of the largest MMFs in Kenya. The fund is known for its competitive returns, which have historically ranged between 8% and 10% per annum. The Britam MMF invests in a diversified portfolio of government securities, commercial paper, and bank deposits. It is a popular choice for both individual and corporate investors due to its strong performance and the financial stability of Britam.
Key Features:
- Annualized Return: 8% – 10%
- Minimum Investment: KES 1,000
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
5. NCBA Money Market Fund
NCBA Group, one of Kenya’s largest banking institutions, manages the NCBA Money Market Fund. The fund offers a competitive edge with its slightly higher-than-average returns, typically ranging between 9% and 11% per annum. The NCBA MMF invests in a mix of government securities, corporate bonds, and fixed deposits. It is particularly appealing to investors looking for a higher return on their investments with the backing of a strong financial institution.
Key Features:
- Annualized Return: 9% – 11%
- Minimum Investment: KES 1,000
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 1.5% per annum
6. Zimele Money Market Fund
Zimele Asset Management manages the Zimele Money Market Fund, a fund designed to cater to retail investors with a focus on affordability and accessibility. The Zimele MMF has one of the lowest minimum investment thresholds, making it an excellent choice for small-scale investors or those just starting with money market investments. The fund offers returns in the range of 7% to 9% per annum and invests in a diversified mix of short-term securities.
Key Features:
- Annualized Return: 7% – 9%
- Minimum Investment: KES 100
- Liquidity: High (24-hour withdrawal processing)
- Management Fee: 2% per annum
7. Old Mutual Money Market Fund
Old Mutual Kenya, a part of the Old Mutual Group, manages the Old Mutual Money Market Fund. This fund is known for its consistency and reliability, offering returns that generally range between 7% and 9% per annum. The Old Mutual MMF invests in government securities, corporate bonds, and fixed deposits, with a focus on capital preservation and liquidity. It is a suitable option for investors who prioritize safety and stable returns.
Key Features:
- Annualized Return: 7% – 9%
- Minimum Investment: KES 5,000
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
8. Madison Money Market Fund
Managed by Madison Asset Management, the Madison Money Market Fund is another strong player in Kenya’s MMF sector. This fund offers competitive returns, typically in the range of 8% to 10% per annum. The Madison MMF invests in a diversified portfolio of short-term securities, including government paper and corporate debt. Its relatively high returns and strong management make it an attractive option for investors seeking both growth and security.
Key Features:
- Annualized Return: 8% – 10%
- Minimum Investment: KES 2,500
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
9. ICEA Lion Money Market Fund
ICEA Lion Asset Management, part of the ICEA Lion Group, manages the ICEA Lion Money Market Fund. This fund has a reputation for offering competitive returns and maintaining a diversified, low-risk portfolio. The ICEA Lion MMF typically delivers returns ranging from 7% to 9% per annum and invests in a combination of government securities, corporate bonds, and bank deposits. It is a preferred choice for investors looking for a well-managed and stable investment option.
Key Features:
- Annualized Return: 7% – 9%
- Minimum Investment: KES 500
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
10. Stanlib Money Market Fund
The Stanlib Money Market Fund, managed by Stanlib Kenya, is a well-established fund known for its stability and strong performance. The fund invests primarily in high-quality short-term instruments such as Treasury bills, commercial paper, and fixed deposits. With returns ranging from 7% to 9% per annum, the Stanlib MMF is a solid choice for investors seeking a balance between safety, liquidity, and modest returns.
Key Features:
- Annualized Return: 7% – 9%
- Minimum Investment: KES 10,000
- Liquidity: High (48-hour withdrawal processing)
- Management Fee: 2% per annum
Conclusion: Choosing the Right Money Market Fund
Choosing the right Money Market Fund in Kenya depends on several factors, including your financial goals, risk tolerance, and investment horizon. The funds listed above represent some of the best options available in the market, each offering unique benefits tailored to different investor needs. Whether you prioritize high returns, low fees, or liquidity, there is a Money Market Fund that can meet your requirements. It is advisable to thoroughly research and compare these funds, considering their historical performance, management fees, and minimum investment requirements, before making a decision. Additionally, consulting with a financial advisor can help you align your investment choices with your overall financial strategy.
