Money Market Funds (MMFs) have solidified their position as a cornerstone of Kenya’s investment landscape, offering a compelling blend of low risk, high liquidity, and competitive returns. As of August 2025, MMFs remain a top choice for Kenyans seeking to grow their wealth while maintaining financial flexibility. With inflation stabilizing and the Central Bank of Kenya (CBK) adjusting its benchmark rates, MMFs continue to outperform traditional savings accounts, making them an attractive option for both novice and seasoned investors. This comprehensive guide explores the best MMFs in Kenya for August 2025, their performance, benefits, risks, and how to choose the right fund to meet your financial goals.
What Are Money Market Funds?
Money Market Funds are unit trust investments that pool money from multiple investors to invest in short-term, low-risk financial instruments. These include Treasury bills, government bonds, fixed deposits, and high-quality commercial paper. Regulated by the Capital Markets Authority (CMA), MMFs are designed to preserve capital while generating modest, steady returns. Their appeal lies in their accessibility, with minimum investments as low as KSh 100, and their ability to offer daily or monthly liquidity.
Why Invest in MMFs in Kenya?
MMFs have gained popularity in Kenya due to their unique advantages:
- Low Risk: MMFs invest in stable, short-term securities, minimizing the risk of capital loss.
- High Liquidity: Investors can withdraw funds quickly, often within 24–48 hours.
- Competitive Returns: Annualized yields range from 10% to 16% in 2025, outpacing traditional savings accounts.
- Affordability: Many funds require minimal initial investments, making them accessible to a wide audience.
- Professional Management: Fund managers diversify investments, ensuring compliance and optimizing returns.
- Inflation Hedge: MMF returns often exceed Kenya’s inflation rate of 5–6%, preserving purchasing power.
Economic Context for MMFs in August 2025
Kenya’s economy in 2025 is navigating a period of stabilization. The CBK lowered its Central Bank Rate (CBR) to 9.75% in May 2025, reflecting lower inflation and a stable economic environment. This has led to a decline in Treasury bill rates, from highs of 16% in July 2024 to around 9% in August 2025, impacting MMF yields. Despite this, 19 MMFs reported average returns above 10% in August 2025, demonstrating resilience. Investors are increasingly turning to MMFs as a safe haven amid global economic uncertainties and local market fluctuations.
Top 10 Money Market Funds in Kenya for August 2025
Based on recent performance data, reputation, and investor feedback, here are the top 10 MMFs in Kenya for August 2025. Yields are indicative and may vary based on market conditions. All data is sourced from reputable financial platforms and fund manager reports.
- Cytonn Money Market Fund
- Annual Yield: 15.58% (net return: 13.24% after 15% withholding tax)
- Minimum Investment: KSh 1,000; top-ups from KSh 100
- Why It Stands Out: Cytonn’s aggressive investment strategy in high-yield securities delivers top-tier returns. Its user-friendly app and *809# USSD code enhance accessibility.
- How to Join: Register via the Cytonn website or dial *809#.
- GulfCap Money Market Fund
- Annual Yield: 13.87% (net return: 12.58%)
- Minimum Investment: KSh 5,000; top-ups from KSh 1,000
- Why It Stands Out: Known for consistent performance and a diversified portfolio, GulfCap is ideal for investors seeking stable returns.
- How to Join: Visit GulfCap Investment Bank’s website or contact their offices.
- Lofty-Corban Money Market Fund
- Annual Yield: 14.90% (net return: 12.67%)
- Minimum Investment: KSh 1,000; top-ups from KSh 100
- Why It Stands Out: With a fund size of KSh 2.43 billion as of December 2024, Lofty-Corban is a fast-growing fund popular among beginners due to its low entry barrier.
- How to Join: Access via their online platform or M-Pesa.
- Etica Money Market Fund
- Annual Yield: 13.01% (net return: 11.06%)
- Minimum Investment: KSh 100; top-ups from KSh 100
- Why It Stands Out: Etica’s low minimum investment and strong social media presence make it a favorite among Gen Z and millennials.
- How to Join: Register through Etica’s website or mobile app.
- Kuza Money Market Fund
- Annual Yield: 12.03% (net return: 10.23%)
- Minimum Investment: KSh 5,000; top-ups from KSh 1,000
- Why It Stands Out: Kuza offers a diversified portfolio and professional management, ideal for investors seeking inflation-beating returns.
- How to Join: Contact Kuza Asset Management or use their online platform.
- Sanlam Money Market Fund
- Annual Yield: 10.9% (net return: 9.27%)
- Minimum Investment: KSh 2,500; top-ups from KSh 1,000
- Why It Stands Out: Sanlam’s global expertise and low 1.5% annual management fee make it a cost-effective choice. Its app supports M-Pesa deposits and instant transactions.
- How to Join: Sign up via the Sanlam website or mobile app.
- CIC Money Market Fund
- Annual Yield: 10% (net return: 8.5%)
- Minimum Investment: KSh 5,000; top-ups from KSh 1,000
- Why It Stands Out: As the largest MMF by market share, CIC offers stability and a robust ecosystem with Co-op Custodial Services and KCB Bank as trustees.
- How to Join: Use the CIC MMF app or visit a CIC branch.
- NCBA Money Market Fund
- Annual Yield: 10.48% (net return: 8.91%)
- Minimum Investment: KSh 5,000; top-ups from KSh 5,000
- Why It Stands Out: NCBA is known for fast withdrawal processing and a portfolio size of KSh 14.89 billion.
- How to Join: Register via NCBA Investment Bank’s website or app.
- Old Mutual Money Market Fund
- Annual Yield: 10–11% (net return: 8.5–9.35%)
- Minimum Investment: KSh 1,000; top-ups from KSh 500
- Why It Stands Out: Old Mutual’s consistent performance and risk-averse strategy appeal to conservative investors.
- How to Join: Visit the Old Mutual website or use their mobile app.
- Britam Money Market Fund
- Annual Yield: 13.35% (August 2024 data, projected to remain competitive in 2025)
- Minimum Investment: KSh 1,000; top-ups from KSh 1,000
- Why It Stands Out: Britam’s robust risk management and digital platform (*778#) ensure steady returns and accessibility.
- How to Join: Sign up via the Britam website or dial *778#.
How to Choose the Best Money Market Fund in Kenya
Selecting the right MMF requires careful consideration of your financial goals and risk tolerance. Here are key factors to evaluate:
- Performance History: Review a fund’s track record for consistent returns. Funds like Cytonn and GulfCap have maintained high yields despite market fluctuations.
- Minimum Investment: Choose a fund that aligns with your budget. Etica and Lofty-Corban offer low entry points (KSh 100–1,000), while others like Nabo require KSh 100,000.
- Fees: Compare management fees, which typically range from 1.5% to 2%. Sanlam’s 1.5% fee is among the lowest.
- Liquidity: Ensure the fund allows quick withdrawals. Most MMFs process withdrawals within 2–4 days, but some, like NCBA, are faster.
- Fund Manager Reputation: Opt for managers with independent custodians and trustees, such as CIC or Britam, to ensure fund security.
- Digital Accessibility: Funds with user-friendly apps or USSD codes (e.g., Cytonn’s *809# or Sanlam’s app) simplify investment management.
Benefits of Investing in Money Market Funds
MMFs offer a range of advantages that make them a staple in Kenya’s investment market:
- Capital Preservation: Investments in low-risk securities like Treasury bills minimize the chance of loss.
- Daily Compounding: Interest is calculated daily and compounded monthly, maximizing returns.
- Flexibility: Low minimum investments and easy top-ups cater to diverse investors.
- Regulatory Oversight: The CMA ensures transparency and compliance, enhancing investor confidence.
- Diversification: MMFs spread investments across multiple assets, reducing risk.
Risks to Consider
While MMFs are low-risk, they are not without challenges:
- Yield Fluctuations: Returns vary with market conditions, as seen with the decline from 18.22% in 2024 to 13.87% in 2025 for some funds.
- No Guaranteed Returns: Past performance does not ensure future results.
- Liquidity Risks: In rare cases, withdrawals may be delayed during extreme market conditions.
- Tax Implications: A 15% withholding tax reduces net returns, though MMFs still outperform Treasury bills (7.5% for 91-day bills).
How to Invest in a Money Market Fund in Kenya
Getting started with an MMF is straightforward:
- Research Funds: Compare yields, fees, and minimum investments using platforms like Money254 or Tuko.co.ke.
- Choose a Fund Manager: Select a reputable manager with a strong track record, such as Cytonn, Sanlam, or CIC.
- Open an Account: Visit the fund’s website, use their mobile app, or contact a financial advisor. Required documents typically include an ID, passport photo, and proof of address.
- Make Your Initial Deposit: Start with as little as KSh 100 (e.g., Etica) or KSh 5,000 (e.g., CIC).
- Monitor Your Investment: Use apps or USSD codes to track returns and manage top-ups or withdrawals.
Tips for Maximizing MMF Returns
To get the most out of your MMF investment:
- Invest Consistently: Regular top-ups leverage daily compounding for higher returns.
- Diversify Across Funds: Spread investments across multiple MMFs to mitigate risk.
- Stay Informed: Monitor CBK rate changes and economic trends that impact yields.
- Consult Advisors: Work with financial planners to align MMFs with your long-term goals.
- Reinvest Returns: Allow interest to compound rather than withdrawing frequently to maximize growth.
The Future of MMFs in Kenya
Analysts predict that MMFs will remain competitive in 2025, despite lower yields due to CBK’s easing monetary policy. If the CBR stabilizes or increases, MMF yields could rise, making them even more attractive. The growing adoption of digital platforms, such as mobile apps and USSD codes, is also enhancing accessibility, with 62 billion mobile money transactions recorded in Kenya in 2023. This trend is likely to continue, making MMFs a cornerstone of Kenya’s financial landscape.
Money Market Funds in Kenya for August 2025 offer a safe, accessible, and rewarding way to grow your wealth. Top performers like Cytonn, GulfCap, and Lofty-Corban deliver competitive returns, while funds like Sanlam and CIC provide stability and digital convenience. By understanding how MMFs work, assessing risks, and choosing a reputable fund manager, you can make informed decisions to secure your financial future. Whether you’re saving for a short-term goal or building a diversified portfolio, MMFs are a smart choice in Kenya’s dynamic economic environment. Start small, research thoroughly, and watch your money work for you.
