MMFs pool funds from investors to invest in low-risk, short-term instruments such as Treasury bills, commercial papers, and bank deposits. Regulated by the Capital Markets Authority (CMA), these funds offer higher yields than traditional savings accounts—often exceeding 10% annually—while maintaining easy access to cash. With Kenya’s inflation rate hovering around 5% in early 2025, MMFs provide a practical way to grow wealth without the volatility of stocks or real estate. Let’s explore the top performers driving returns in this space today.
Why Money Market Funds Are Thriving in Kenya
Before diving into the rankings, it’s worth understanding why MMFs are a cornerstone of Kenya’s investment scene:
- Competitive Returns: Yields often surpass bank savings rates (typically 1%-7%) and inflation, preserving purchasing power.
- Liquidity: Most funds allow withdrawals within 1-4 days, making them ideal for emergencies or short-term goals.
- Low Risk: Investments in high-quality securities reduce exposure to market swings.
- Accessibility: Digital platforms and low minimum investments (as little as KSh 100) democratize access.
- Professional Management: Expert fund managers optimize returns, sparing investors the complexity of direct market navigation.
With these advantages, MMFs have seen assets under management (AUM) soar past KSh 200 billion, reflecting growing trust among Kenyans. Now, let’s unveil the top 10 highest-yielding money market funds in Kenya based on the latest available yields.
Top 10 Highest-Yielding Money Market Funds in Kenya Right Now
Below is a curated list of Kenya’s best-performing MMFs as of early 2025, ranked by their effective annual yields (post-fees, pre-tax). Data is sourced from fund reports, industry analyses, and CMA updates, ensuring accuracy up to April 3, 2025.
1. Cytonn Money Market Fund – 16.61% Yield
- Fund Manager: Cytonn Investments
- Minimum Investment: KSh 1,000 (top-ups KSh 100)
- Why It’s Top: Leading the pack, Cytonn MMF delivers a stellar 16.61% annual yield, down slightly from its 18.34% peak in mid-2024 but still unmatched. Its tech-driven platform and daily interest compounding make it a favorite.
- Highlights: No entry/exit fees, instant withdrawals via USSD (*809#), and investments in Treasury bills and fixed deposits.
- Best For: Tech-savvy investors seeking high returns with minimal hassle.
2. Lofty Corban Money Market Fund – 16.26% Yield
- Fund Manager: Lofty Corban Investments
- Minimum Investment: KSh 1,000 (top-ups KSh 1,000)
- Why It’s Top: With a 16.26% yield, Lofty Corban has climbed the ranks, boasting over KSh 1 billion in AUM. Its focus on bank deposits and commercial papers ensures stability.
- Highlights: 2.74% management fee, consistent outperformance, and a growing reputation for reliability.
- Best For: Investors prioritizing steady growth and capital preservation.
3. GulfCap Money Market Fund – 16.25% Yield
- Fund Manager: GulfCap Investments
- Minimum Investment: KSh 1,000 (top-ups KSh 100)
- Why It’s Top: A newcomer making waves, GulfCap’s 16.25% yield reflects aggressive yet prudent investment in short-term securities.
- Highlights: Low entry barrier, digital onboarding, and a 2.5% management fee.
- Best For: New investors looking for high yields with low startup costs.
4. Etica Money Market Fund – 15.90% Yield
- Fund Manager: Etica Capital Ltd.
- Minimum Investment: KSh 100 (top-ups KSh 100)
- Why It’s Top: Once the leader at 18.36% in 2024, Etica’s 15.90% yield remains impressive. Its app-based management and daily interest crediting keep it popular.
- Highlights: Lowest minimum investment, 2.73% management fee, and a focus on Treasury bills.
- Best For: Budget-conscious investors wanting flexibility.
5. Kuza Money Market Fund – 15.39% Yield
- Fund Manager: Kuza Asset Management
- Minimum Investment: KSh 5,000 (top-ups KSh 1,000)
- Why It’s Top: Kuza’s 15.39% yield stems from a diversified portfolio of government securities and bank placements.
- Highlights: 2% management fee, 2-4 day withdrawal processing, and a solid track record.
- Best For: Mid-tier investors seeking a balance of yield and security.
6. Arvocap Money Market Fund – 15.12% Yield
- Fund Manager: Arvocap Investments
- Minimum Investment: KSh 1,000 (top-ups KSh 500)
- Why It’s Top: Arvocap’s 15.12% yield reflects its strategic mix of Treasury bills and corporate notes.
- Highlights: Competitive returns, digital access, and a 2.3% management fee.
- Best For: Investors valuing diversification and moderate risk.
7. Orient Kasha Money Market Fund – 14.18% Yield
- Fund Manager: Orient Kasha Investments
- Minimum Investment: KSh 5,000 (top-ups KSh 1,000)
- Why It’s Top: Offering 14.18%, Orient Kasha appeals with its focus on fixed deposits and government securities.
- Highlights: 2% management fee, quarterly statements, and a stable yield history.
- Best For: Conservative investors with slightly higher capital.
8. Dry Associates Money Market Fund – 13.73% Yield
- Fund Manager: Dry Associates Ltd.
- Minimum Investment: KSh 5,000 (top-ups KSh 1,000)
- Why It’s Top: A veteran player, Dry Associates delivers 13.73% with a reputation for consistency.
- Highlights: Investments in T-bills and bank deposits, 2% management fee, and 2-3 day liquidity.
- Best For: Long-term savers seeking reliability.
9. Sanlam Money Market Fund – 13.65% Yield
- Fund Manager: Sanlam Investments East Africa
- Minimum Investment: KSh 2,500 (top-ups KSh 1,000)
- Why It’s Top: Sanlam’s 13.65% yield is backed by one of Kenya’s largest AUM portfolios, ensuring trust and stability.
- Highlights: High-quality asset focus, monthly statements, and a 2% management fee.
- Best For: Risk-averse investors with moderate capital.
10. Madison Money Market Fund – 13.62% Yield
- Fund Manager: Madison Asset Management
- Minimum Investment: KSh 5,000 (top-ups KSh 1,000)
- Why It’s Top: Madison rounds out the top 10 with a 13.62% yield, leveraging its status as a market leader.
- Highlights: 2% management fee, 2-3 day withdrawals, and a diversified portfolio.
- Best For: Professionals and SMEs aiming for steady gains.
Key Factors Driving These High Yields
What sets these highest-yielding money market funds in Kenya apart? Several factors contribute to their success:
- Interest Rate Environment: The CBK’s 11.25% benchmark rate keeps yields elevated, though cuts from 13% in 2024 have tempered gains.
- Fund Manager Expertise: Skilled allocation to high-return, low-risk securities like T-bills (yielding 10%-11%) boosts performance.
- Digital Innovation: User-friendly apps and USSD platforms (e.g., Cytonn’s *809#) enhance accessibility, attracting more investors.
- Low Overhead Costs: Minimal fees (typically 2%-2.74%) ensure more returns reach investors.
Comparing the Top 10: A Quick Snapshot
| Fund Name | Yield (%) | Min. Investment (KSh) | Top-Up (KSh) | Management Fee (%) | Withdrawal Time |
|---|---|---|---|---|---|
| Cytonn MMF | 16.61 | 1,000 | 100 | 2.55 | Instant |
| Lofty Corban MMF | 16.26 | 1,000 | 1,000 | 2.74 | 2-4 days |
| GulfCap MMF | 16.25 | 1,000 | 100 | 2.50 | 2-3 days |
| Etica MMF | 15.90 | 100 | 100 | 2.73 | 1-2 days |
| Kuza MMF | 15.39 | 5,000 | 1,000 | 2.00 | 2-4 days |
| Arvocap MMF | 15.12 | 1,000 | 500 | 2.30 | 2-3 days |
| Orient Kasha MMF | 14.18 | 5,000 | 1,000 | 2.00 | 2-4 days |
| Dry Associates MMF | 13.73 | 5,000 | 1,000 | 2.00 | 2-3 days |
| Sanlam MMF | 13.65 | 2,500 | 1,000 | 2.00 | 2-3 days |
| Madison MMF | 13.62 | 5,000 | 1,000 | 2.00 | 2-3 days |
How to Choose the Best Money Market Fund for You
Selecting from the best money market funds in Kenya depends on your financial goals. Here’s a guide:
- Yield vs. Risk: Higher yields (e.g., Cytonn, Lofty Corban) may involve slightly riskier allocations. Opt for Sanlam or Madison for more conservative returns.
- Liquidity Needs: Need cash fast? Cytonn’s instant withdrawals or Etica’s 1-2 day processing stand out.
- Investment Amount: Starting small? Etica (KSh 100) or Cytonn (KSh 1,000) are accessible. Have more capital? Kuza or Madison suit higher entry points.
- Digital Access: Prefer managing investments via phone? Cytonn, Etica, and GulfCap offer seamless tech platforms.
Always review fund fact sheets and consult a financial advisor to align your choice with your risk tolerance and timeline.
Benefits of Investing in Kenya’s Top MMFs
Investing in these highest-yielding MMFs offers distinct advantages:
- Beating Inflation: Yields of 13%-16% far exceed Kenya’s 5% inflation rate, growing real wealth.
- Flexibility: From emergency funds to short-term savings (e.g., school fees, holidays), MMFs fit various needs.
- Tax Considerations: While interest is subject to a 15% withholding tax, the net returns remain competitive.
- Safety Net: CMA oversight and investments in secure assets minimize loss risks.
Risks to Watch Out For
Though MMFs are low-risk, they’re not immune to challenges:
- Interest Rate Fluctuations: Further CBK rate cuts could lower yields, as seen in 2024’s decline from 18%+ highs.
- Liquidity Delays: Some funds (e.g., Kuza, Orient Kasha) take up to 4 days for withdrawals, which may inconvenience urgent needs.
- Management Fees: Fees (2%-2.74%) reduce net returns, especially for smaller investments.
- No Capital Guarantee: Unlike bank deposits with KDIC protection, MMFs aren’t insured, though principal loss is rare.
How to Start Investing in Money Market Funds in Kenya
Ready to tap into these top MMFs? Here’s a step-by-step guide:
- Research: Compare yields, fees, and minimums from the list above.
- Choose a Fund: Match your goals—e.g., Etica for low entry, Cytonn for top yields.
- Register: Most funds offer online or USSD sign-ups (e.g., Cytonn’s *809#). Provide ID, KRA PIN, and bank details.
- Deposit: Fund your account via M-Pesa, bank transfer, or cheque.
- Track: Monitor returns via apps, statements, or customer support.
- Withdraw: Request funds when needed, noting processing times.
Many funds waive entry/exit fees, making it cost-effective to start.
As Kenya’s economy stabilizes in 2025, MMFs are poised for continued relevance. The CBK’s monetary policy will be key—further rate cuts could pressure yields, but fund managers’ adaptability (e.g., shifting to higher-yield securities) should sustain competitiveness. Digital adoption, with platforms like Safaricom’s Mali MMF gaining traction, will also drive growth, potentially lowering minimums and enhancing access. With AUM projected to hit KSh 250 billion by year-end, MMFs remain a cornerstone of Kenya’s investment landscape.
The top 10 highest-yielding money market funds in Kenya right now—from Cytonn’s 16.61% to Madison’s 13.62%—offer a spectrum of options for investors seeking safety and growth. Whether you’re a salaried professional saving for a car, an entrepreneur building a cash reserve, or a retiree preserving wealth, these funds deliver. With yields outpacing inflation and bank rates, now’s the time to explore investing in Kenya’s best MMFs. Review your options, align them with your goals, and take the first step toward financial security today.
