Investors seeking short-term fixed-income returns continue to find Kenyan money market funds competitive, with the latest yields showing strong performance across the sector. As of 18th February 2026, the Gulfcap Money Market Fund led the pack with a 12.47% yield, highlighting its continued appeal to institutional and retail investors looking for liquidity management coupled with attractive returns.
Following closely, Cytonn Money Market Fund posted an 11.45% yield, while Arvocap Money Market Fund and Nabo Africa Money Market Fund returned 11.30% and 11.11% respectively. The top performers reflect a combination of robust portfolio management and continued demand for money market instruments amid stable liquidity conditions in the Kenyan financial system.
Other notable performers include Enwealth Money Market Fund (10.86%), Lofty-Corban Money Market Fund (10.85%), and Ndovu Money Market Fund (10.48%), all yielding above the 10% mark. Lower down the ranking, funds such as Etica Money Market Fund (10.28%), Old Mutual Money Market Fund (10.08%), and British-American Money Market Fund (9.96%) continue to offer reliable returns, although slightly below the sector average.
The performance of money market funds is particularly relevant in the context of the Central Bank of Kenya’s (CBK) recent monetary policy easing, which saw the policy rate lowered to 8.75% in February 2026. Despite the modest 25 basis point cut, yields on money market instruments have remained elevated, reflecting persistent risk premia, stable liquidity, and active fund management strategies designed to optimize returns for investors.
Money market funds in Kenya primarily invest in short-term government securities, commercial paper, and bank deposits, offering investors high liquidity and lower risk compared to equities or longer-term fixed-income instruments. They serve as a key vehicle for institutional investors, pension funds, and individual investors seeking capital preservation while earning competitive returns.
The broader market trends show a continued appetite for shorter-duration instruments, driven by uncertainty in global markets and investor preference for flexibility amid macroeconomic fluctuations. This environment has allowed top-performing funds like Gulfcap and Cytonn to maintain yields well above the average banking deposit rates, which typically hover between 6% and 8% for one-year fixed deposits.
“The Kenyan money market continues to offer attractive returns for investors who prioritize liquidity and capital preservation,” said a market analyst familiar with the sector. “Fund managers are leveraging short-term government securities and high-quality commercial paper to optimize yields, which is why top funds are exceeding 12% in some cases.”
Market Implications
The current yield environment signals that money market funds remain a viable alternative for investors seeking better returns than conventional bank deposits without taking on the volatility of equities. High-performing funds are likely to attract inflows from both retail and institutional investors, enhancing fund liquidity and potentially allowing managers to negotiate better rates on underlying securities.
Investors should, however, assess fund-specific factors such as portfolio composition, management fees, and historical performance when selecting a fund, as yields can vary significantly across providers. For example, Gulfcap’s top ranking is partially attributed to its focused strategy on high-quality, short-term Treasury bills and a robust risk management framework.
While the sector has demonstrated resilience, analysts note that yields could adjust as monetary policy shifts, inflation dynamics evolve, or liquidity conditions change. Close monitoring of the Central Bank of Kenya’s policy statements and money market trends is advised for investors aiming to maximize returns while maintaining liquidity.
Full Ranking – KSh Money Market Fund Yields (18 February 2026)
- Gulfcap Money Market Fund – 12.47%
- Cytonn Money Market Fund – 11.45%
- Arvocap Money Market Fund – 11.30%
- Nabo Africa Money Market Fund – 11.11%
- Enwealth Money Market Fund – 10.86%
- Lofty-Corban Money Market Fund – 10.85%
- Ndovu Money Market Fund – 10.48%
- Kuza Money Market Fund – 10.42%
- Jubilee Money Market Fund – 10.40%
- Etica Money Market Fund – 10.28%
- Old Mutual Money Market Fund – 10.08%
- British-American Money Market Fund – 9.96%
- Orient Kasha Money Market Fund – 9.84%
- Madison Money Market Fund – 9.66%
- Dry Associates Money Market Fund – 9.61%
