The KCB Money Market Fund is a low-risk investment fund in Kenya that allows individuals and corporates to preserve capital while earning competitive returns. Managed by KCB Asset Management Ltd and distributed by KCB Investment Bank, the fund invests in high-quality, interest-earning short-term instruments, making it ideal for both first-time investors and those seeking a secure place for idle funds.
KCB Money Market Fund Overview
The KCB Money Market Fund provides investors with a flexible and secure way to grow their savings. The fund is regulated by the Capital Markets Authority (CMA) of Kenya and overseen by a trustee and custodian, ensuring investor protection and compliance with industry best practices.
Key Features:
- Minimum Investment: KES 5,000 (KSh Fund), USD 100 (USD Fund)
- Investment Type: Treasury bills, fixed deposits, call deposits, corporate notes
- Liquidity: Withdraw funds in as little as 2 working days
- Management Fee: 2% per annum
- Risk Profile: Low-risk, capital preservation focused
Benefits of Investing in KCB Money Market Fund:
- Professional Fund Management: Managed by a team of qualified investment professionals
- Diversification: Access a diversified pool of high-quality securities
- Potential for Higher Returns: Pooling of funds allows for better yields compared to similar products
- Accessibility: Easily withdraw funds at short notice
- Safety: Regulated by CMA with trustee and custodian oversight
Where Are the Funds Invested?
KCB Money Market Fund invests in a diversified portfolio of interest-bearing assets, including:
- Treasury Bills & Bonds issued by the government
- Corporate Notes from high-rated companies
- Bank Fixed and Call Deposits in reputable financial institutions
All investments comply with CMA regulations and the fund’s trust deed, ensuring low risk and stable returns.
Currency Options
KCB Money Market Fund is available in two currencies:
- Kenya Shillings (KES) – KCB Money Market Fund (KSh)
- US Dollars (USD) – KCB Money Market Fund (USD)
Fees and Taxation
- Management Fee: 2% per annum, reported net of fees but gross of withholding tax
- Withholding Tax: 15% on interest earned for both residents and non-residents
- Fund-Level Tax: None, as it is a Collective Investment Scheme
How to Invest in KCB Money Market Fund
Step 1: Open an Account Online
- Visit KCB Investment Portal
- Submit KYC documents: ID/Passport copy, PIN certificate, passport-size photo
Step 2: Fund Your Account
- KCB Bank Account Holders: Indicate investment amount and account to be debited
- Other Bank Transfers: Use the following accounts:
- KCB Money Market Fund (KES): 1310078157
- KCB Money Market Fund (USD): 1310078351
Step 3: Account Confirmation
- You will receive an email acknowledging account creation and investment within 24 hours
Manual Application:
- Complete the KCB investment account application form at any KCB branch or via email: wealthmanagement@kcbgroup.com
How to Redeem or Withdraw Funds
- Send withdrawal instructions to: wealthmanagement@kcbgroup.com
- Funds are credited to your bank account within 2 working days
- No penalties for early withdrawals
How to Update Your Details
- Update bank, email, or address by filling out the details change form and emailing: wealthmanagement@kcbgroup.com
Key Takeaways
- KCB Money Market Fund is a secure, low-risk investment suitable for individuals and corporates
- Offers high liquidity, professional management, and access to diversified short-term instruments
- Minimum investments: KES 5,000 for Shilling Fund and USD 100 for Dollar Fund
- Competitive returns with 2% management fee and 15% withholding tax on earnings
