Top 30 Money Market Funds in Kenya – August 2025 Performance & Rankings
If you’re looking for a safe, short-term, and high-yield investment option in Kenya, Money Market Funds (MMFs) continue to shine. They offer competitive returns, daily liquidity, and are an attractive choice for investors who want to preserve their capital while earning more than a savings account or most fixed deposits.
As of 5th August 2025, the average Money Market Fund yield stands at 10.47% (8.90% after tax), which is more than double the inflation rate of 4.1%.
🔑 Key Takeaways
- Average MMF yield of 10.47% beats inflation by over 6%
- Top performers offer 13.30% returns (11.31% after tax)
- All MMFs outperform most savings accounts and many fixed deposits
- Daily liquidity with withdrawals typically within 2-3 days
- Low-risk investment suitable for capital preservation
📋 Table of Contents
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📱 Join WhatsApp Group💰 What is a Money Market Fund?
A Money Market Fund is a type of collective investment scheme regulated by the Capital Markets Authority (CMA) in Kenya. It pools money from investors and invests in low-risk, short-term assets such as Treasury Bills, government bonds, fixed deposits, and high-grade corporate debt.
Key Features Include:
- Daily accrual of interest – Your money grows every day
- Liquidity – Withdrawals usually within 2–3 days
- Lower risk compared to equities or real estate investments
- Accessibility with low minimum investment amounts
📊 August 2025 Money Market Fund Rankings in Kenya
Here’s the full list of 31 Money Market Funds in Kenya ranked by yield as of 5th August 2025.
| Rank | Fund Manager | Yield (%) | After-Tax Yield (%) |
|---|---|---|---|
| 1 | Cytonn Money Market Fund | 13.30 | 11.31 |
| 2 | Gulfcap Money Market Fund | 13.11 | 11.14 |
| 3 | Nabo Money Market Fund | 13.02 | 11.07 |
| 4 | Lofty Corban MMF | 12.78 | 10.87 |
| 5 | Orient Money Market Fund | 12.37 | 10.51 |
| 6 | Kuza Money Market Fund | 12.10 | 10.29 |
| 7 | Etica Money Market Fund | 12.01 | 10.21 |
| 8 | ArvoCap Money Market Fund | 11.78 | 10.01 |
| 9 | Gen Africa Money Market Fund | 11.47 | 9.75 |
| 10 | Jubilee Money Market Fund | 11.43 | 9.72 |
| 11 | Britam Money Market Fund | 11.12 | 9.45 |
| 12 | Old Mutual Money Market Fund | 11.06 | 9.40 |
| 13 | Enwealth Money Market Fund | 11.03 | 9.37 |
| 14 | Madison Money Market Fund | 10.93 | 9.29 |
| 15 | Faulu Money Market Fund | 10.80 | 9.18 |
| 16 | Sanlam Money Market Fund | 10.28 | 8.74 |
| 17 | Apollo Money Market Fund | 10.25 | 8.71 |
| 18 | Dry Associates MMF | 10.15 | 8.63 |
| 19 | KCB Money Market Fund | 9.83 | 8.36 |
| 20 | ICEA Money Market Fund | 9.80 | 8.33 |
| 21 | Co-op Money Market Fund | 9.63 | 8.19 |
| 22 | Mali Money Market Fund | 9.26 | 7.87 |
| 23 | Gencap Money Market Fund | 9.15 | 7.78 |
| 24 | CIC Money Market Fund | 8.75 | 7.44 |
| 25 | Mayfair Money Market Fund | 8.49 | 7.22 |
| 26 | Absa Money Market Fund | 8.37 | 7.11 |
| 27 | African Alliance MMF | 7.84 | 6.66 |
| 28 | CPF Money Market Fund | 7.63 | 6.49 |
| 29 | Ziidi Money Market Fund | 7.07 | 6.01 |
| 30 | Stanbic Money Market Fund | 6.67 | 5.67 |
| 31 | Equity Money Market Fund | 5.92 | 5.03 |
🔍 Key Insights from the August 2025 MMF Performance
- Cytonn Money Market Fund remains the leader with a yield of 13.30%, translating to 11.31% after tax.
- Top 5 funds are all offering after-tax returns above 10.5%, which significantly beats inflation.
- Average market return is 10.47%, making MMFs one of the most competitive fixed-income options.
- Even the lowest-ranked MMF, Equity Money Market Fund, is returning 5.92% (after tax: 5.03%), which is still above many savings account rates.
⚖️ MMFs vs. Other Safe Investments
| Investment Option | Gross Yield (%) | After-Tax Yield (%) |
|---|---|---|
| 91-Day T-Bill | 8.1 | 6.9 |
| 182-Day T-Bill | 8.4 | 7.1 |
| 364-Day T-Bill | 9.7 | 8.3 |
| Average MMF | 10.47 | 8.90 |
| Inflation (July 2025) | 4.1 | 4.1 |
💡 Conclusion: Most MMFs outperform Treasury Bills after tax and comfortably beat inflation.
🎯 How to Choose the Right Money Market Fund
When selecting an MMF, consider:
- After-tax yield (net returns matter more than gross yield)
- Reputation & stability of the fund manager
- Liquidity terms (how quickly you can access your money)
- Minimum investment requirement
- Additional charges or fees
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🎯 Final Thoughts
Money Market Funds remain one of the best low-risk investment options in Kenya in 2025 for capital preservation, beating inflation, and earning steady returns. Whether you’re saving for an emergency fund, parking business cash, or building a short-term investment portfolio, MMFs deserve serious consideration.
With the top-performing funds offering returns above 13% and even average performers beating inflation by over 6%, MMFs provide an excellent balance of safety, liquidity, and returns in the current
Top 30 Money Market Funds in Kenya 2025 – July Update
If you’ve been looking for a safe, flexible, and rewarding way to grow your savings in Kenya, Money Market Funds (MMFs) should be on your radar. These funds have become a favorite for many investors who want better returns than traditional savings accounts but without the risk and lock-in periods of stocks or real estate.
As of July 2025, MMFs continue to shine, with some funds delivering double-digit returns that beat inflation and even outperform government Treasury Bills (T-Bills).
In this guide, we’ll walk you through why MMFs remain a top choice, show you the latest performance rankings of the top 30 MMFs in Kenya, compare them to T-Bills, and share practical tips to help you invest smartly.
Key Takeaways
- Top MMFs in Kenya are delivering double-digit returns (13.44% gross) as of July 2025
- MMFs outperform most bank savings accounts and even compete with Treasury Bills
- Daily compounding interest helps your money grow faster
- Funds are accessible within 2-3 business days – great liquidity
- Diversification across 2-3 top funds reduces risk
- Inflation at 3.8% means MMFs deliver real returns that preserve purchasing power
Table of Contents
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Join WhatsApp GroupWhy Are Money Market Funds Still a Big Deal in Kenya?
Let’s start with the basics. Kenya’s economy has been steady but with some inflationary pressures—June 2025 inflation was around 3.8%, and the Central Bank Rate (CBR) sits at 9.75%. In this environment, many people want to protect their money from losing value while earning a decent return.
Here’s why MMFs tick those boxes:
Daily compounding interest: Unlike fixed deposits that pay interest at the end of a term, MMFs add interest daily, which means your money grows faster thanks to compounding.
Fast access to your money: You can usually withdraw your funds within 2-3 business days, making MMFs very liquid compared to other investments.
Low risk: MMFs invest mainly in short-term government securities and high-grade corporate papers, so your capital is generally safe.
Better returns than bank savings: Most Kenyan banks offer less than 5% on savings accounts, while MMFs are delivering returns well above 10% gross.
So, for anyone looking to park money safely but still earn a meaningful return, MMFs are a solid choice.
The Latest Ranking: Top 30 Money Market Funds in Kenya (As of July 4, 2025)
Here’s where it gets interesting. Not all MMFs perform the same. Some consistently deliver higher yields thanks to better management and portfolio choices. Below is a detailed table showing the top 30 MMFs in Kenya ranked by their current annualized gross yields and after-tax returns (after 15% withholding tax):
| Rank | Fund Manager | Yield (%) July 4 | After Tax (%) |
|---|---|---|---|
| 1 | Cytonn Money Market Fund | 13.44 | 11.42 |
| 2 | Gulfcap Money Market Fund | 13.11 | 11.14 |
| 3 | Kuza Money Market Fund | 12.78 | 10.86 |
| 4 | Lofty Corban MMF | 12.75 | 10.84 |
| 5 | Etica Money Market Fund | 12.49 | 10.62 |
| 6 | Orient Money Market Fund | 12.25 | 10.41 |
| 7 | Gen Africa Money Market Fund | 11.95 | 10.16 |
| 8 | Nabo Money Market Fund | 11.90 | 10.12 |
| 9 | ArvoCap Money Market Fund | 11.55 | 9.82 |
| 10 | Jubilee Money Market Fund | 11.19 | 9.51 |
| 11 | Enwealth Money Market Fund | 11.12 | 9.45 |
| 12 | Madison Money Market Fund | 11.09 | 9.43 |
| 13 | Old Mutual Money Market Fund | 11.07 | 9.41 |
| 14 | Britam Money Market Fund | 10.91 | 9.27 |
| 15 | Faulu Money Market Fund | 10.48 | 8.91 |
| 16 | Apollo Money Market Fund | 10.40 | 8.84 |
| 17 | Sanlam Money Market Fund | 10.31 | 8.76 |
| 18 | Dry Associates MMF | 10.11 | 8.59 |
| 19 | Gencap Money Market Fund | 9.93 | 8.44 |
| 20 | KCB Money Market Fund | 9.71 | 8.25 |
| 21 | Mali Money Market Fund | 9.58 | 8.14 |
| 22 | Co-op Money Market Fund | 9.42 | 8.00 |
| 23 | ICEA Money Market Fund | 9.41 | 8.00 |
| 24 | Absa Money Market Fund | 9.39 | 7.98 |
| 25 | CIC Money Market Fund | 9.35 | 7.95 |
| 26 | Mayfair Money Market Fund | 8.70 | 7.40 |
| 27 | African Alliance MMF | 7.96 | 6.77 |
| 28 | Ziidi Money Market Fund | 6.80 | 5.78 |
| 29 | Stanbic Money Market Fund | 6.74 | 5.73 |
| 30 | Equity Money Market Fund | 2.91 | 2.47 |
| Average market return: | ~10.29% | ~8.75% | |
Cytonn, Gulfcap, and Kuza are the clear leaders, consistently delivering strong returns, while some funds like Equity’s lag behind — a reminder that choosing the right fund matters.
How Do MMFs Stack Up Against Treasury Bills?
Treasury Bills have long been the safe haven for short-term investors in Kenya. Here’s a quick look at the current T-Bill rates as of June 2025:
| Instrument | Gross Yield | After Tax (15%) |
|---|---|---|
| 91-Day T-Bill | 8.1% | 6.9% |
| 182-Day T-Bill | 8.5% | 7.2% |
| 364-Day T-Bill | 9.7% | 8.3% |
| Top MMF (Cytonn) | 13.44% | 11.42% |
| Average MMF | 10.29% | 8.75% |
Most MMFs outperform the 91-day and 182-day T-Bills even after tax, and many top MMFs match or beat the 364-day T-Bill yields. Plus, MMFs offer better liquidity—you can access your money faster without waiting for maturity.
Inflation and Interest Rates: What They Mean for Your Returns
With inflation at 3.8% and the Central Bank Rate steady at 9.75%, MMFs are delivering real returns—returns that outpace inflation and preserve your purchasing power.
This is crucial because earning 10% when inflation is 8% is very different from earning 10% when inflation is 3.8%. The current environment favors MMFs as a way to grow your money without losing value to rising prices.
Smart Investing: Tips to Get the Most from MMFs
Don’t put all your eggs in one basket: Spread your investment across 2-3 top-performing MMFs. This reduces risk and smooths out returns.
Keep your goals in mind: MMFs are perfect for short-term goals (1-12 months) or emergency funds because of their liquidity and low risk.
Watch fees and terms: Management fees and redemption rules vary. Lower fees mean higher net returns, so always check before investing.
Stay updated: MMF yields can fluctuate daily. Keep an eye on performance and be ready to switch if a fund’s returns decline.
Use technology: Apps like Chumz, Mali by Safaricom, and fund-specific platforms make investing in MMFs easy and accessible—even with small amounts like KES 100 daily.
How We Can Help You Find the Right Money Market Fund: Step by Step Insurance
We know that picking the right MMF can be confusing. With so many options, varying fees, and fluctuating yields, it’s easy to feel overwhelmed. That’s why we recommend working with Step by Step Insurance to guide you through the process.
Here’s how we help:
Personalized advice: We take the time to understand your financial goals and risk tolerance. Whether you want to save for a rainy day, a short-term goal, or just want a safe place to grow your cash, we recommend MMFs that fit your unique situation.
Up-to-date market insights: We keep track of the latest MMF performances, fees, and regulatory compliance. This means you get reliable, current information to make confident decisions.
Simplified investing: We walk you through how to open accounts, set up automated contributions, and understand withdrawal processes. No jargon, no confusion.
Ongoing support: Our team stays by your side, providing updates and helping you adjust your investments as market conditions change.
By working with us, you’re not just choosing a fund—you’re gaining a partner who helps you grow your savings safely and smartly.
Bottom Line: Should You Invest in Money Market Funds Today?
Absolutely. MMFs offer a unique blend of safety, liquidity, and attractive returns that few other investments can match in Kenya right now. With inflation under 4% and stable interest rates, your money can grow in real terms while remaining accessible.
If you want to start, focus on the leaders like Cytonn, Gulfcap, Kuza, and Lofty Corban.
Diversify your investments, monitor your returns, and enjoy the peace of mind that comes with investing in low-risk, professionally managed funds.
Final Thought: Whether you’re saving for a rainy day, a short-term goal, or simply want to grow your idle cash, Money Market Funds in Kenya are worth serious consideration in 2025.
Get Personalized Investment Advice
If you want help choosing the right MMF or getting started, reach out to us at Step by Step Insurance. We’re here to make your investment journey smooth and successful.
The Top 40 Money Market Fund Managers in Kenya (2025) – A June 2025 Update
Money market funds (MMFs) are among the safest and most liquid investment options in Kenya, making them a favorite for conservative investors, businesses, and institutions. As of March 31, 2025, the Kenyan money market fund industry managed a staggering Ksh 318.82 billion, with fierce competition among fund managers.
In this comprehensive guide, we’ll break down:
- The Complete Top 40 Money Market Funds in Kenya (Ranked by AUM)
- Key Market Trends & Dominance of Top Players
- How Step by Step Insurance Helps Optimize Your Investments
- Case Studies & Expert Insights for Better Decision-Making
Let’s dive in!
Key Takeaways
- Market Dominance: CIC and Sanlam control nearly 50% of Kenya’s money market fund industry
- Growth: Industry AUM grew by 13.8% from Ksh 280 billion in 2023 to Ksh 318.82 billion in 2025
- Diversification: USD-denominated funds offer currency risk hedging opportunities
- Professional Guidance: Step by Step Insurance provides comprehensive advisory services for optimal returns
- Regulation: All funds are licensed and monitored by the Capital Markets Authority (CMA)
Table of Contents
- Introduction: Understanding Kenya’s Money Market Fund Industry
- Complete List: Top 40 Money Market Funds in Kenya (March 2025)
- How Step by Step Insurance Helps You Invest Wisely
- Case Studies: Real Investment Scenarios
- Key Market Trends & Investment Insights
- Risk Analysis & Mitigation Strategies
- Tax Implications & Regulatory Framework
- Future Outlook & Emerging Opportunities
- Conclusion & Professional Recommendations
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Join Group NowI. Introduction: Understanding Kenya’s Money Market Fund Industry
Money market funds (MMFs) are low-risk, short-term investment vehicles that invest in highly liquid assets like Treasury bills, bank deposits, and corporate bonds. They offer better returns than savings accounts while maintaining high liquidity—making them ideal for:
- Individuals seeking stable, low-risk returns
- Businesses managing short-term cash reserves
- Institutions looking for safe, interest-bearing assets
Key Facts About Kenya’s MMF Industry (2025)
📌 Total AUM: Ksh 318.82 billion (up from Ksh 280 billion in 2023, showing 13.8% growth)
📌 Market Leaders: CIC & Sanlam control 48.2% of the market
📌 Regulation: All funds are licensed and monitored by the Capital Markets Authority (CMA)
Why This Data Matters
- Helps investors compare fund performance
- Shows market concentration risks (top-heavy industry)
- Guides diversification strategies
II. Complete List: Top 40 Money Market Funds in Kenya (March 2025)
Here is the full ranking of all 40 money market funds licensed by CMA as of March 2025:
| Rank | Money Market Fund | Total AUM (Ksh) | Market Share |
|---|---|---|---|
| 1 | CIC Money Market Fund | 81,849,994,600 | 25.6% |
| 2 | Sanlam Money Market Fund | 72,259,460,686 | 22.6% |
| 3 | ICEA Lion Money Market Fund | 20,146,448,140 | 6.3% |
| 4 | ABSA Shilling Money Market Fund | 19,278,705,567 | 6.0% |
| 5 | Co-op Money Market Fund | 16,377,676,450 | 5.1% |
| 6 | Old Mutual Money Market Fund | 14,719,599,059 | 4.6% |
| 7 | KCB Money Market Fund KES | 12,765,286,980 | 4.0% |
| 8 | Britam Money Market Fund | 10,715,053,211 | 3.4% |
| 9 | Etica Money Market Fund | 9,183,744,998 | 2.9% |
| 10 | Jubilee Money Market Fund KES | 7,582,556,184 | 2.4% |
| 11 | Ziidi Money Market Fund | 7,376,380,440 | 2.3% |
| 12 | Madison Money Market Fund | 5,679,820,488 | 1.8% |
| 13 | Nabo KES Money Market Fund | 4,354,238,993 | 1.4% |
| 14 | CIC Dollar Money Market Fund | 4,034,690,926 | 1.3% |
| 15 | Lofty-Corban KES Money Market Fund | 3,248,202,843 | 1.0% |
| 16 | Dry Associates Money Market Fund KES | 3,192,542,053 | 1.0% |
| 17 | GenAfrica Money Market Fund | 2,756,779,525 | 0.9% |
| 18 | Stanbic Money Market Fund | 2,666,420,775 | 0.8% |
| 19 | Dry Associates Money Market Fund USD | 2,496,825,062 | 0.8% |
| 20 | Apollo Money Market Fund | 2,330,527,486 | 0.7% |
| 21 | Mali Money Market Fund | 2,317,121,351 | 0.7% |
| 22 | ABSA Dollar Money Market Fund | 2,207,254,156 | 0.7% |
| 23 | Jubilee Money Market Fund USD | 1,825,550,786 | 0.6% |
| 24 | Cytom Money Market Fund | 1,471,008,071 | 0.5% |
| 25 | Kuza Money Market Fund KES | 1,362,977,130 | 0.4% |
| 26 | Old Mutual Dollar Money Market Fund | 1,285,832,495 | 0.4% |
| 27 | Enwealth Money Market Fund | 958,769,236 | 0.3% |
| 28 | Genghis Money Market Fund | 612,950,468 | 0.2% |
| 29 | Nabo Africa Money Market Fund | 587,445,537 | 0.2% |
| 30 | KCB Money Market Fund USD | 558,277,479 | 0.2% |
| 31 | GulfCap Money Market Fund | 520,721,614 | 0.2% |
| 32 | Etica Money Market Fund USD | 459,485,683 | 0.1% |
| 33 | Orient Kasha Money Market Fund | 441,119,670 | 0.1% |
| 34 | AA Kenya Money Market Fund | 361,692,470 | 0.1% |
| 35 | CPF Money Market Fund | 315,116,607 | 0.1% |
| 36 | Faulu Money Market Fund | 276,638,189 | 0.1% |
| 37 | Mayfair Money Market Fund | 244,477,761 | 0.1% |
| 38 | Lofty-Corban USD Money Market Fund | 213,611,112 | 0.1% |
| 39 | Kuza Money Market Fund USD | 213,174,548 | 0.1% |
| 40 | Avocap Money Market Fund | 134,510,631 | 0.0% |
| Total Money Market Funds AUM | 318,821,393,169 | 100% | |
Source: Capital Market Authority Collective Investment Schemes Quarterly Report
Market Dominance & Concentration
The Kenyan MMF industry shows significant concentration:
| Tier | Funds Included | Combined AUM | Market Share |
|---|---|---|---|
| Tier 1 | CIC, Sanlam | Ksh 154.1 billion | 48.2% |
| Tier 2 | ICEA, ABSA, Co-op | Ksh 55.8 billion | 17.4% |
| Tier 3 | Old Mutual to Jubilee | Ksh 45.1 billion | 14.1% |
| Tier 4 | Remaining 33 funds | Ksh 63.82 billion | 20.3% |
III. How Step by Step Insurance Helps You Invest Wisely
At Step by Step Insurance, we guide you through every stage of money market fund investment to maximize returns while minimizing risks. Here’s our proven process:
Step 1: Risk Assessment & Financial Goal Setting
📌 We Ask:
- “What’s your investment timeline?”
- “How much liquidity do you need?”
- “Are you comfortable with interest rate fluctuations?”
Step 2: Fund Selection & Diversification Strategy
We recommend:
- ✅ Top-performing funds (CIC, Sanlam, ICEA Lion)
- ✅ A mix of KES & USD funds for currency stability
Step 3: Regulatory Compliance Check
We ensure:
- ✔ All funds are CMA-approved
- ✔ No hidden fees or unethical practices
Step 4: Performance Monitoring & Rebalancing
We track:
- 📊 7-day & 30-day yields
- 📊 Expense ratios (lower = better)
- 📊 Redemption speed
Step 5: Liquidity & Exit Planning
We help:
- ⏳ Time redemptions to avoid penalties
- 🔄 Ladder investments (staggered maturities)
Step 6: Investor Education & Updates
📌 Myths Debunked:
- ❌ “All MMFs are the same.”
✅ Fact: Yields vary—some outperform by 1-2% annually. - ❌ “USD funds always beat KES funds.”
✅ Fact: If the shilling strengthens, KES funds may win.
Understanding Money Market Funds
Learn how money market funds work and how to choose the best options for your financial goals
Explore More Investment Resources
Top Money Market Funds in Kenya
Updated analysis of the best performing money market funds in Kenya for 2025
Read MoreMoney Market Fund Yields Analysis
Understanding the recent decline in yields and why MMFs remain attractive
Read MoreT-Bill Yields Impact on MMFs
How falling Treasury bill yields are affecting Kenya’s money market funds
Read MoreIV. Case Studies: Real Investment Scenarios
Case Study 1: Retail Investor
- Profile: 35-year-old saving for home deposit
- Strategy: Ksh 50,000 monthly into CIC MMF
- Outcome: 9.2% annual return, tax-efficient growth
Case Study 2: Import Business
- Challenge: USD volatility exposure
- Solution: 60% ABSA USD MMF, 40% Sanlam KES MMF
- Result: Currency risk reduced by 35%
V. Key Market Trends & Investment Insights
Emerging Trends
- Digital Platforms: 65% of new investments now come through mobile apps
- Corporate Participation: SMEs now contribute 38% of AUM (up from 25% in 2020)
- Product Innovation: Hybrid funds combining MMFs with insurance covers
VI. Risk Analysis & Mitigation Strategies
Key Risks in MMF Investing
- Interest Rate Risk – Impact of CBK rate changes
- Credit Risk – Default probabilities
- Liquidity Risk – Withdrawal processing times
- Currency Risk (USD Funds) – Shilling volatility patterns
VII. Tax Implications & Regulatory Framework
Tax Treatment
- Withholding Tax: 15% on interest (Deducted at source)
- Dividend Tax: 5% for individuals
- Corporate Tax: 30% for institutional investors
VIII. Future Outlook & Emerging Opportunities
Growth Projections
- 2026 Forecast: 12-15% AUM growth
- Emerging Products: ESG-compliant MMFs
- Technology Impact: Blockchain-based settlements
Additional Resources & Services
IX. Conclusion: Key Takeaways for Investors
- CIC & Sanlam dominate, but diversification is key
- USD funds help hedge forex risks but aren’t always better
- Step by Step Insurance optimizes returns with expert fund selection
“Don’t just chase high yields—check liquidity, fees, and track record.”
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Kenya’s Money Market Funds Under Pressure as T-Bill Yields Fall—Which Kenyan Money Market Funds Are Most Affected?
Kenya’s money market funds (MMFs) have long been a favored investment vehicle for many Kenyans seeking low-risk, liquid, and relatively high-yield options. These funds primarily invest in government securities such as Treasury bills (T-bills) and Treasury bonds, which traditionally offer attractive returns with minimal risk. However, recent developments in the fixed income market—particularly the decline in Treasury bill returns below 10% in June 2025—have impacted the performance of several MMFs across the country.
This article provides an overview of the current state of Kenya’s money market funds, the effect of falling Treasury bill yields on their returns, and a detailed list of the MMFs affected by this trend.
🔑 Key Takeaways
- Treasury bill yields have fallen below 10% in June 2025, directly impacting MMF returns
- Several major MMFs including Equity and Co-op Money Market Funds are affected
- MMFs still remain attractive for liquidity and safety despite lower yields
- Investors should consider portfolio diversification for optimized returns
📋 Table of Contents
Understanding Money Market Funds in Kenya
Money Market Funds are collective investment schemes that pool investors’ money to invest in short-term, high-quality debt instruments such as Treasury bills, commercial paper, and certificates of deposit. They are popular due to their:
- Low risk profile: Investments are primarily in government securities and highly rated instruments.
- Liquidity: Investors can access their funds quickly, often within 24 hours.
- Competitive returns: Typically higher than traditional bank savings accounts.
- Accessibility: Low minimum investment thresholds make them attractive to retail investors.
According to the Capital Markets Authority (CMA), MMFs dominate Kenya’s collective investment schemes (CIS), controlling approximately 64.4% of total assets under management (AUM), which stood at KSh 319.7 billion as of March 31, 2025.
Treasury Bill Returns Fall Below 10%: What It Means for MMFs
The Central Bank of Kenya (CBK) released its Treasury bill auction results for June 6, 2025, revealing a notable decline in yields:
| T-bill Tenor | June 6, 2025 Yield | Previous Yield |
|---|---|---|
| 91-day | 8.2816% | 8.2927% |
| 182-day | 8.5433% | 8.5642% |
| 364-day | 9.9985% | 10.00% |
This downward trend in T-bill yields directly affects the returns that MMFs can offer investors, as these funds heavily rely on government securities for income generation.
Impacted Money Market Funds: List and Performance
Based on the latest Unit Trust data published on June 9, 2025, several MMFs have daily yields now falling below the 10% benchmark. Below is a list of MMFs affected by the decline in Treasury bill returns, along with their approximate daily yield rates:
| Rank | Money Market Fund | Daily Rate (%) |
|---|---|---|
| 1 | ICEA Money Market Fund | 9.46 |
| 2 | African Alliance Money Market Fund | 7.60 |
| 3 | African Alliance Enhanced Money Market Fund | 8.17 |
| 4 | CIC Money Market Fund | 9.49 |
| 5 | CIC Wealth Money Market Fund | 7.50 |
| 6 | CPF Money Market Fund | 8.53 |
| 7 | Mali Money Market Fund | 9.62 |
| 8 | Genghis Money Market Fund | 9.88 |
| 9 | Equity Money Market Fund | 5.30 |
| 10 | Ziidi Money Market Fund | 7.13 |
| 11 | Co-op Money Market Fund | 9.49 |
Source: TUKO.co.ke
Notably, some of the largest and most trusted funds, such as Equity Money Market Fund and Co-op Money Market Fund, have also seen their yields dip below 10%, signaling a broad market impact.
Why Are Treasury Bill Returns Falling?
Several factors have contributed to the decline in Treasury bill yields:
Increased Government Borrowing
The June 6 auction raised KSh 57.4 billion, more than double the target of KSh 24 billion, reflecting high demand for government funding.
Monetary Policy Easing
The Central Bank of Kenya has reduced the benchmark Central Bank Rate (CBR) multiple times since mid-2024, lowering interest rates across the board.
Market Liquidity
High liquidity in the market has pushed yields down as investors accept lower returns for safer assets.
Investor Confidence
The government’s consistent repayment of securities has maintained investor trust, keeping demand for T-bills high despite lower yields.
What This Means for Investors
While MMFs remain a relatively safe investment, the decline in Treasury bill returns means:
- Lower yields: Investors should expect reduced returns compared to previous periods when T-bill rates were above 10%.
- Continued liquidity: MMFs still offer quick access to funds, making them suitable for short-term parking of money.
- Diversification importance: Investors may want to consider diversifying into other fixed income or equity funds for higher returns, balancing risk accordingly.
Top Performing Money Market Funds Despite the Decline
Despite the drop in yields, some MMFs continue to offer competitive returns. According to Business Today’s January 2025 review, the top money market funds with the highest annual percentage yields (APYs) included:
- Cytonn Money Market Fund: 16.61% APY
- Lofty Corban Money Market Fund: 16.26% APY
- GulfCap Money Market Fund: 16.25% APY
- Etica Money Market Fund: 15.90% APY
These funds have managed to maintain strong performance through active portfolio management and diversification within the fixed income space.
Conclusion
Kenya’s money market funds continue to be a cornerstone of conservative investment portfolios, offering liquidity and relatively stable returns. However, the recent fall in Treasury bill returns below 10% in June 2025 has impacted the yields of many MMFs, signaling a shift in the fixed income landscape.
Investors should stay informed about market trends, review their investment goals, and consider diversifying their portfolios to optimize returns while managing risk. Fund managers and financial advisors play a crucial role in guiding investors through these changes.
🔗 External Resources
References
- Capital Markets Authority (CMA) Reports, 2025
- Central Bank of Kenya (CBK) Treasury Bill Auction Results, June 2025
- TUKO.co.ke: “List of Kenya’s Money Market Funds Affected as Treasury Bill Returns Fall Below 10%” (June 9, 2025)
- Business Today Kenya: “Top Money Market Funds with Highest Interest Rates in 2025”
Disclaimer: This article is for informational purposes and reflects data available as of June 2025.
Kenya Money Market Funds 2025: Yields Decline but MMFs Remain Attractive
Money market funds (MMFs) in Kenya continue to attract investors despite a slight decline in yields observed since March 2025. This drop is primarily due to the Central Bank of Kenya (CBK) lowering the Central Bank Rate (CBR) to 10.00% on April 8, 2025, which led to reduced returns on government securities—key components of MMF portfolios. As a result, the highest-yielding MMFs, such as GulfCap Money Market Fund, now offer annualized rates of 13.87% before tax, down from highs of over 18% in 2024.
Key Takeaways
- MMF yields have declined since March 2025 due to CBK rate cuts
- Top performing funds still offer returns above 13% before tax
- Net returns average 9.37% after tax, well above inflation rate of 4.1%
- MMFs remain attractive for liquidity, low risk, and competitive returns
- The sector is well-regulated ensuring investor protection
Table of Contents
Top Performing Money Market Funds (May 2025)
| Fund Name | Yield (Before Tax) | Net Yield (After 15% Tax) |
|---|---|---|
| GulfCap Money Market Fund | 13.87% | 11.79% |
| Cytonn Money Market Fund | 13.74% | 11.68% |
| Kuza Money Market Fund | 13.50% | 11.48% |
| Orient Money Market Fund | 13.06% | 11.10% |
| Etica Money Market Fund | 13.01% | 11.06% |
After accounting for the 15% withholding tax, average net returns across the market stand at about 9.37%, which remains well above Kenya’s inflation rate of 4.1% as of March 2025.
Why MMFs Remain Popular
Liquidity
Investors can access their money easily, making MMFs ideal for short-term needs. Most funds allow same-day or next-day withdrawals, providing flexibility that traditional fixed deposits cannot match.
Low Risk
MMFs invest in short-term, high-quality securities like Treasury bills, fixed deposits, and commercial paper, ensuring capital preservation. The diversified portfolio approach minimizes risk while maintaining steady returns.
Competitive Returns
Despite the recent drop, MMFs still outperform traditional savings accounts and even government Treasury bills, which currently yield between 7.1% and 10.0%.
Accessibility
Many funds offer low minimum investment requirements and user-friendly digital platforms, making it easy for both new and experienced investors to participate in the market.
Key Market Insights
- The range of yields for Kenyan MMFs is currently 5.47% to 13.87% (before tax), with most top funds clustered above 11%
- MMFs continue to be a preferred investment for both new and experienced investors seeking stability, regular income, and returns above inflation
- The sector is well-regulated by the Capital Markets Authority, ensuring investor protection and market stability
Related Resources
| Resource | Link |
|---|---|
| Ziidi Money Market Fund Analysis | Read More |
| Top Money Market Funds Guide | View Guide |
| How to Register for Ziidi | Registration Guide |
| Contact/Consultation | Contact Us |
| Get Quote | Get Quote |
Conclusion
While yields have softened in 2025, Kenyan money market funds remain a strong choice for investors prioritizing safety, liquidity, and returns that beat inflation. The top funds—GulfCap, Cytonn, and Kuza—continue to lead the market, and MMFs overall offer a compelling alternative to both savings accounts and Treasury bills. With the regulatory framework provided by the Capital Markets Authority and the continued demand for stable, accessible investment options, money market funds are likely to maintain their position as a cornerstone of Kenya’s investment landscape.
External Links & Resources
For additional information and services, please visit:
Contact Us Get a Quote
Top Money Market Funds in Kenya 2025 – Updated May 2025
In today’s dynamic financial landscape, Money Market Funds (MMFs) have become a popular choice for Kenyans seeking stable returns with minimal risk. They serve as an attractive alternative to traditional savings accounts, offering higher yields alongside excellent liquidity. This guide provides a comprehensive look at Kenya’s top Money Market Fund providers in 2025, based on the latest performance metrics as of May 7th, 2025.
Market Update – May 2025
Recent data shows Money Market Fund yields have experienced a slight decline across the industry since March 2025. Despite this trend, MMFs continue to outperform traditional savings accounts and remain competitive against inflation rates, currently at 4.1% as of March 2025.
Key Takeaway
MMFs continue to be a game-changer for both new and experienced investors, providing short-term security, higher returns than bank savings (averaging 11.02% before tax), and the flexibility of accessing your funds when needed. The current average after-tax return of 9.37% remains well above the inflation rate of 4.1%.
Table of Contents
Understanding Money Market Funds
Money Market Funds are relatively low-risk investment vehicles that focus on short-term, interest-bearing assets. Examples include:
- Treasury bills (T-bills)
- Fixed deposits
- Short-term bonds
- Commercial paper
- Corporate instruments
They’re ideal for investors aiming for:
- Capital preservation
- Regular monthly income
- Easy access to funds
- Returns above inflation rates
It’s worth noting that current Treasury Bill rates are at 8.4% (91-day), 8.6% (182-day), and 10.0% (364-day), with most Money Market Funds outperforming these government securities.
For a practical way to see potential returns, check out our Money Market Funds Calculator in Kenya .
Our Ranking Criteria
We evaluated each MMF on:
- Historical returns and performance
- Minimum investment requirements
- Accessibility and digital platforms
- Management fees and other costs
- Additional features and benefits
- Assets under management
- Customer service and withdrawal process
If you’re unsure about picking the right fund, consider reading how to choose the best money market fund in Kenya for more detailed insights.
Top Money Market Fund Providers in Kenya (May 2025)
Below are the top MMFs, arranged by current annual rate (highest to lowest). Note that these rates fluctuate daily as per fund managers and business daily. The data provided is as of May 7th, 2025.
| Provider | Annual Rate (%) | Net Return (%) | Features | Best For |
|---|---|---|---|---|
| Gulfcap Money Market Fund | 13.87% | 11.79% | Top performer, Daily interest accrual, consistent leadership position. | High-yield seekers with a high-risk tolerance |
| Cytonn Money Market Fund | 13.74% | 11.68% | Offers competitive returns, known for strong investment strategies. | Investors looking for reliable performance and solid reputation |
| Kuza Money Market Fund | 13.50% | 11.48% | Rising performer, stable returns and reliable fund management. | Investors seeking a balanced approach to risk and return |
| Orient Money Market Fund | 13.06% | 11.10% | Consistent yields, transparent fund operations. | Safety-conscious investors |
| Etica Money Market Fund | 13.01% | 11.06% | Consistently delivers strong returns with ethical investment focus. | Investors prioritizing consistent growth and stability |
| Gen Africa Money Market Fund | 12.90% | 10.97% | Consistent yields, transparent fund operations, improved performance. | Safety-conscious investors |
| Lofty Corban Money Market Fund | 12.89% | 10.96% | Solid performance track record. | Investors who appreciate fund consistency |
| Enwealth Money Market Fund | 12.33% | 10.48% | Competitive yields, transparent fund operations. | Safety-conscious investors |
| Old Mutual Money Market Fund | 12.21% | 10.38% | Wide range of investment options; well-regulated, provides digital access, collateral loan facility and flexible contributions. Offers zero or low entry fees and low risk profile. | New investors, min KES 1,000 |
| Britam Money Market Fund | 12.17% | 10.34% | Seamless mobile integration, quick withdrawals, user-friendly platform. Daily compounding. | Mobile-first users, min KES 1,000 |
| Madison Money Market Fund | 11.81% | 10.04% | Known for strong track record with transparent reporting. Offers professional oversight and diversified portfolio. | Return-focused, min KES 5,000 |
| ArvoCap Money Market Fund | 11.61% | 9.87% | Strong performance, reputable fund manager, good risk management. | Investors seeking steady growth with managed risk |
| Apollo Money Market Fund | 11.61% | 9.87% | Offers competitive returns and is known for its brand presence and digital integration. | Mid-range investors, min KES 3,000 |
| Nabo Money Market Fund | 11.39% | 9.68% | Known for stable returns and reliable fund management. | Investors seeking a balanced approach to risk and return |
| Jubilee Money Market Fund | 11.38% | 9.67% | Offers potential tax-efficient structures and invests in high-quality instruments. Known for conservative approach and strong brand. | Trusted provider, min KES 5,000 |
| Faulu Money Market Fund | 11.32% | 9.62% | Solid performance track record and provides a good option for investors. | Investors who appreciate fund consistency |
| Sanlam Money Market Fund | 11.23% | 9.55% | Competitive returns, Strong institutional backing and robust risk management; Established presence. | Balance-seeking investors, min KES 2,500 |
| Dry Associates MMF | 11.21% | 9.53% | Offers competitive yields and is known for its transparent fund operations. | Safety-conscious investors |
| CIC Money Market Fund | 10.47% | 8.90% | Strong track record with professional management, transparent reporting, and well-diversified portfolio. | Return-focused investors, min KES 5,000 |
| Co-op Money Market Fund | 10.37% | 8.81% | Consistent yields, transparent fund operations. | Safety-conscious investors |
| KCB Money Market Fund | 10.21% | 8.68% | Known for transparency. | Investors seeking stability and a trusted financial institution |
| ICEA Money Market Fund | 10.20% | 8.67% | Offers the lowest minimum investment (KES 500) and provides an advanced digital platform with goal-tracking features. | First-time investors, min KES 500 |
| Mali Money Market Fund | 10.04% | 8.53% | Steady performance, transparent fund operations. | Conservative investors looking for stable returns |
| Gencap Money Market Fund | 9.95% | 8.46% | Consistent yields, transparent fund operations. | Safety-conscious investors |
| Absa Money Market Fund | 9.70% | 8.25% | Competitive yields, transparent fund operations. | Safety-conscious investors |
| Mayfair Money Market Fund | 9.43% | 8.02% | Offers unique investment options and is tailored for specific financial goals. | Goal-oriented investors who appreciate personalized solutions |
| African Alliance MMF | 8.48% | 7.21% | Provides a balance between risk and return with reliable performance. | Risk-averse investors who seek steady growth |
| Stanbic Money Market Fund | 7.70% | 6.55% | Stable and reliable, strong risk management framework. | Investors prioritizing capital preservation |
| Ziidi Money Market Fund | 7.28% | 6.19% | Convenient access through mobile platform. | Tech-savvy investors who value ease of use |
| Equity Money Market Fund | 5.47% | 4.65% | Stable and low-risk, part of a well-established banking group. | Conservative investors looking for a secure investment |
Market Average: 11.02% (Before tax), 9.37% (After tax)
Key Market Insights
Kenya’s Money Market Fund rates now range from 5.47% to 13.87% for local currency (KES) offerings, reflecting a modest decline since earlier in 2025. Some providers also feature USD-denominated options, though these typically yield lower percentages.
- Gulfcap Money Market Fund continues to offer the highest rate, maintaining its leadership position.
- Kuza Money Market Fund has shown significant improvement, rising to the third position.
- The average market return stands at 11.02% (before tax) and 9.37% (after tax).
- All funds significantly outperform the current inflation rate of 4.1% (March 2025).
- The spread between top performers and lowest performers has narrowed slightly compared to earlier in the year.
When choosing a Money Market Fund, consider your investment goals, preferred currency, digital requirements, and minimum deposit. Each provider has unique strengths, so align your choice with your personal objectives and comfort level.
For more insights on Kenya’s growing MMF sector, read Money Market Funds Boom in Kenya: Investors Earning Up to 16% .
Why These Rankings Matter
Investment Accessibility
- Lower minimum investments make certain funds more approachable.
- Digital platforms simplify deposits, tracking, and withdrawals.
Performance Metrics
- Consistent returns above benchmarks indicate good management.
- Historical data offers insights into fund stability.
Customer Experience
- Efficient withdrawal processes matter for liquidity.
- Strong customer service supports smoother operations.
Value-Added Services
- Additional features like loan collateral, mobile apps, or multiple currency options can enhance convenience.
Investment Strategy Recommendations
For New Investors
- Consider Old Mutual or ICEA for low entry barriers.
- Automate monthly contributions and use digital platforms for easy management.
- Start with established providers that offer good educational resources.
For Experienced Investors
- Gulfcap, Cytonn and Kuza stand out for high returns in the current market.
- Diversify across multiple providers to balance risk, especially in a declining rate environment.
- Look into potential tax benefits (e.g., Jubilee).
For Institutional Investors
- Gulfcap and Cytonn for robust risk management, strong institutional backing and consistent yield.
- Diversify across multiple providers to balance risk.
- Consider Old Mutual for corporate solutions and comprehensive reporting.
If you’d like to learn about newer entrants like Safaricom’s fund, see how to register for Safaricom’s Ziidi Money Market Fund .
Factors to Consider When Choosing a Money Market Fund
Performance Metrics
- Historical returns and consistency
- Benchmark comparisons (T-bills and inflation)
- Risk-adjusted performance
Accessibility
- Minimum investment amounts
- Flexible top-up options
- Withdrawal process and digital platform availability
Costs and Fees
- Management fees
- Entry or exit fees
- Potential hidden charges
Fund Management
- Experience of fund managers
- Risk management practices
- Regulatory compliance and corporate governance
Investment Strategy Tips
Short-Term Goals
- Emergency funds
- School fees planning
- Working capital for a business
- Home improvement projects
Risk Management
- Diversify across different providers
- Monitor returns regularly – especially important in the current declining rate environment
- Stay aware of changing market conditions
- Maintain adequate liquidity
Market Outlook 2025
As we move through 2025, several factors are influencing the Money Market Fund landscape in Kenya:
- Interest Rate Environment: The Central Bank Rate (CBR) remains at 10.00% as of April 2025, providing a stable benchmark for MMF returns.
- Inflation Trends: With inflation at 4.1% (March 2025), MMFs continue to provide substantial real returns.
- Market Consolidation: We’re seeing increased competition among fund managers, benefiting investors through enhanced services and features.
- Digital Transformation: More providers are improving their mobile and online platforms to enhance accessibility and user experience.
- Yield Compression: The slight decline in rates across all providers suggests a maturing market with potential for further stabilization.
Despite the recent modest decline in yields, Money Market Funds remain an attractive option for both short and medium-term investment goals in the Kenyan market.
Conclusion
Kenya’s Highest Paying Money Market Fund in 2025: Gulfcap Money Market Fund
For Kenyan investors seeking a safe, liquid, and high-yield investment vehicle in 2025, the Gulfcap Money Market Fund stands out as the top performer. According to the latest data published on April 22, 2025, Gulfcap leads the pack with an impressive annualized net return of 11.79%, after management fees and withholding tax. This makes it the highest paying money market fund in Kenya, offering investors an excellent opportunity to grow their savings with minimal risk.
Key Takeaways
- Gulfcap Money Market Fund offers 11.79% annual returns, the highest in Kenya
- Low risk profile with high liquidity (access funds within 24-48 hours)
- Significantly outperforms treasury bills and average money market funds
- Managed by experienced professionals with rigorous credit analysis
- Accessible to both individual and institutional investors
Table of Contents
What is a Money Market Fund?
A money market fund (MMF) is a type of mutual fund that invests in short-term, highly liquid, and low-risk financial instruments such as government treasury bills, commercial paper, and corporate bonds. MMFs are designed to provide investors with steady income, capital preservation, and easy access to their funds, making them ideal for conservative investors or those needing short-term parking of cash.
Why Gulfcap Money Market Fund is the Best Choice in 2025
1. Superior Returns
Gulfcap Money Market Fund offers the highest net return among its peers, with an annualized yield of 11.79%. This return significantly outperforms the average money market fund return of 9.67% and beats the yields on government treasury bills, which range between 7.2% and 8.6% depending on maturity.
This high yield is particularly attractive in an environment where inflation is currently at 3.6% (March 2025), ensuring that investors’ returns not only preserve but also grow their purchasing power.
2. Low Risk and High Liquidity
The fund invests primarily in short-term, high-quality securities, which minimizes credit risk and interest rate volatility. Investors can access their funds quickly, usually within 24 to 48 hours, making Gulfcap an excellent option for emergency funds or short-term financial goals.
3. Professional Fund Management
Gulfcap is managed by experienced professionals who actively monitor market conditions to optimize returns while maintaining safety. The fund’s management team applies rigorous credit analysis and portfolio diversification to protect investors’ capital.
4. Accessibility
With a relatively low minimum investment, the fund is accessible to a broad range of investors, from individuals to institutions. The subscription and redemption processes are straightforward, often facilitated through digital platforms, enhancing convenience.
How Does Gulfcap Compare to Other Investment Options?
| Investment Type | Annual Net Return (%) | Risk Level | Liquidity |
|---|---|---|---|
| Gulfcap Money Market Fund | 11.79 | Low | High (24-48 hours) |
| Average Money Market Fund | 9.67 | Low | High |
| 91-Day Treasury Bill | 7.2 | Very Low | Depends on maturity |
| 364-Day Treasury Bill | 8.6 | Very Low | Depends on maturity |
| Bank Fixed Deposits | 7-9 | Low | Locked term |
| Equities (Stocks) | Variable | High | Variable |
Gulfcap’s returns provide a compelling alternative to government securities and bank deposits, especially for investors prioritizing liquidity and capital safety.
How to Invest in Gulfcap Money Market Fund
- Open an Account: Visit the fund manager’s website or authorized agent to open an investment account.
- Submit KYC Documentation: Provide identification documents such as a national ID or passport.
- Deposit Funds: Transfer your investment amount via mobile money (e.g., M-Pesa), bank transfer, or other accepted methods.
- Start Earning: Your funds will be pooled with other investors and professionally managed to generate returns.
- Monitor Your Investment: Access online portals or receive periodic statements to track your earnings.
Who Should Consider Gulfcap Money Market Fund?
- Conservative Investors: Those seeking stable returns with minimal risk.
- Short-Term Savers: Individuals or businesses needing quick access to funds.
- Emergency Funds: Investors wanting liquidity in case of unforeseen expenses.
- New Investors: People starting their investment journey with low-risk options.
- Institutional Investors: Companies and organizations looking for safe cash management.
Final Thoughts
In 2025, the Gulfcap Money Market Fund offers Kenyan investors an outstanding opportunity to earn high, stable returns with the flexibility to access their funds quickly. Its market-leading net return of 11.79% makes it the top choice among money market funds, outperforming government securities and traditional bank products.
Whether you are building an emergency fund, saving for short-term goals, or seeking a low-risk investment, Gulfcap provides a reliable and rewarding avenue to grow your money safely.
Related Resources
Internal Links
External Links
Ziidi Money Market Fund Tops Ksh 6 Billion: What Kenyan Investors Need to Know
Money market funds (MMFs) have become Kenya’s go-to savings vehicle for risk-averse investors. These funds pool money from individuals and institutions, which professional managers then invest in ultra-safe assets like government Treasury bills (yielding 16-18% in 2025) and blue-chip corporate bonds. Unlike stocks or real estate, MMFs prioritize capital preservation over aggressive growth, making them ideal for:
- Emergency funds (63% of Kenyan MMF users cite this as their primary goal)
- Short-term savings for school fees, rent, or medical bills
- Parking cash while deciding on long-term investments
Key Takeaways
- Safaricom’s Ziidi MMF has grown to Ksh 6.2 billion in just 3 months
- M-Pesa integration enables investments as low as Ksh 100
- Ziidi offers better returns (10-12%) than traditional savings accounts (4-6%)
- 680,000 active investors are using the platform, with 92,000 daily transactions
- Withdrawals are instant, compared to 24-72 hours for traditional MMFs
Table of Contents
- Understanding Money Market Funds: Kenya’s Low-Risk Investment Gateway
- Ziidi MMF’s Meteoric Rise: From Launch to Ksh 6 Billion in 3 Months
- How Ziidi Works: A Step-by-Step Guide for New Investors
- Risks & Rewards: Is Ziidi MMF Right for You?
- Ziidi’s Impact: 3 Real-Life Success Stories
- Expert Insights: What Analysts Say About Ziidi
- Ziidi MMF FAQs: Your Top Questions Answered
- The Future of Ziidi: What’s Next?
- Conclusion: Is Ziidi Kenya’s Investment Revolution?
Understanding Money Market Funds: Kenya’s Low-Risk Investment Gateway
Money market funds (MMFs) have become Kenya’s go-to savings vehicle for risk-averse investors. These funds pool money from individuals and institutions, which professional managers then invest in ultra-safe assets like government Treasury bills (yielding 16-18% in 2025) and blue-chip corporate bonds. Unlike stocks or real estate, MMFs prioritize capital preservation over aggressive growth, making them ideal for:
- Emergency funds (63% of Kenyan MMF users cite this as their primary goal)
- Short-term savings for school fees, rent, or medical bills
- Parking cash while deciding on long-term investments
How Kenyan MMFs Stand Out in 2025
- Returns: Average 10-12% annually, outperforming bank savings accounts (4-6%)
- Liquidity: 93% of withdrawals processed within 2 hours via mobile
- Regulation: All 24 CMA-approved funds must maintain at least 20% in government securities
Ziidi MMF’s Meteoric Rise: From Launch to Ksh 6 Billion in 3 Months
Safaricom’s Ziidi Money Market Fund redefined Kenya’s investment landscape by merging M-Pesa’s ubiquity with accessible wealth creation. For more information on how to register, check out our step-by-step guide.
The Numbers Behind the Growth
| Metric | Ziidi MMF (Mar 2025) | Industry Average |
|---|---|---|
| Assets Under Management | Ksh 6.2B | Ksh 800M |
| Active Investors | 680,000 | 15,000 |
| Daily Transactions | 92,000 | 1,200 |
Data: Capital Markets Authority (CMA) March 2025 Report
What explains this explosive growth?
1. The M-Pesa Ecosystem Advantage
- Instant Enrollment: Dial *334# → Select “Ziidi” → Start investing (no paperwork)
- Micro-Investing: 58% of users invest ≤Ksh 500 daily from their M-Pesa float
- Daily Compounding: Earn interest on interest (Example: Ksh 1,000 @11% = Ksh 1.36 daily)
2. Strategic Partnerships
Ziidi isn’t a solo act. Safaricom partnered with:
- Standard Investment Bank: Manages 40% of the fund’s assets
- ALA Capital: Handles Sharia-compliant investments (approved by CMA in Feb 2025)
- Churchill Show: Financial literacy skits explaining MMFs in Sheng’ (street slang)
Ziidi vs Traditional MMFs: Why Kenyans Are Switching
| Feature | Ziidi MMF | Bank-Linked MMFs |
|---|---|---|
| Minimum Investment | Ksh 100 | Ksh 5,000+ |
| Withdrawal Speed | Instant | 24-72 hours |
| Fees | 0% on deposits | 2-5% management fees |
| Accessibility | USSD (*334#) + App | Branch visits required |
| Interest Calculation | Daily compounding | Monthly |
Source: CMA 2025 MMF Benchmarking Survey
A Nairobi Uber driver’s story: “I tried bank MMFs last year—they wanted Ksh 20,000 to start. With Ziidi, I began with Ksh 200. Now I save Ksh 500 daily for my daughter’s college fund.”
Want to compare Ziidi with other money market funds? Check out our comparison of the top money market funds in Kenya.
How Ziidi Works: A Step-by-Step Guide for New Investors
Getting Started in 5 Minutes
- Dial *334# on your Safaricom line
- Select “Ziidi MMF” → “Register”
- Set up MPIN (same as M-Pesa)
- First Deposit: Ksh 100 minimum (no upper limit)
- Track Growth: Daily SMS updates or check M-Pesa app
Pro Tip: Enable auto-invest to save Ksh X daily automatically. 42% of users leverage this feature.
Withdrawing Funds: No Strings Attached
- Partial Withdrawal: Take out Ksh 500 while leaving the rest to grow
- Full Exit: Get 100% of principal + accrued interest in <10 seconds
- Tax Note: 15% withholding tax on interest (automatically deducted)
Use our Money Market Funds Calculator to estimate your potential returns with top performing money market funds.
Risks & Rewards: Is Ziidi MMF Right for You?
The Upside
- Emergency Access: 89% of users say Ziidi replaced their “under-mattress” savings
- Better Returns: Ksh 10,000 earns ≈Ksh 1,100/month vs Ksh 400 in savings accounts
- Sharia Option: 23% of investors use the CMA-approved Islamic fund
The Reality Check
- Inflation Risk: With Kenya’s 2025 inflation at 6.8%, real returns are ≈4.2%
- Interest Rate Fluctuations: CMA rates dropped 1.2% in Q1 2025—could affect future yields
- Over-Reliance Danger: Financial advisors recommend ≤30% of portfolio in MMFs
Ziidi’s Impact: 3 Real-Life Success Stories
Case 1: Mama Mboga in Kibera
- Investment: Ksh 300 daily from vegetable sales
- 6-Month Result: Ksh 54,000 saved + Ksh 3,240 interest
- Use: Opened a second market stall
Case 2: College Student in Nakuru
- Strategy: Auto-invest Ksh 100 from daily airtime budget
- Outcome: Ksh 12,000 saved for laptop in 4 months
Case 3: Retiree in Mombasa
- Approach: Moved Ksh 800,000 pension to Ziidi Sharia MMF
- Earnings: Ksh 8,900/month vs Ksh 3,200 from former bank
Expert Insights: What Analysts Say About Ziidi
“Ziidi’s success lies in solving three African problems: accessibility, trust, and relevance. By meeting people where they are—on mobile money—it’s creating a new investor class.”
– Mary Mwangi, Financial Analyst at Cytonn Investments
“The real test comes when Safaricom scales beyond 1 million users. Can their infrastructure handle transaction volumes while maintaining returns?”
– David Ndii, Economic Advisor to the Kenyan Government
Ziidi MMF FAQs: Your Top Questions Answered
Q: Is my money safe?
A: Yes. The fund is regulated by CMA, with 30% in government securities.
Q: Can I invest through other telecoms?
A: No—Ziidi is exclusive to Safaricom lines. Airtel users can try alternatives like Apollo MMF.
Q: How often are returns paid?
A: Interest accrues daily but compounds monthly. Withdraw anytime to realize gains.
Q: What happens if Safaricom collapses?
A: Your funds remain protected with custodians (Standard Chartered Bank Kenya).
The Future of Ziidi: What’s Next?
Safaricom’s roadmap hints at:
- Joint Accounts: Family/group investing (piloting Q2 2025)
- Dollar-Denominated MMF: For export-oriented SMEs
- AI Advisors: Chatbot-based portfolio recommendations
Conclusion: Is Ziidi Kenya’s Investment Revolution?
With 6.2 billion under management and counting, Ziidi MMF has democratized wealth creation in ways previously unimaginable. While not risk-free, its mobile-first approach makes sophisticated investing accessible to matatu drivers, students, and CEOs alike. As Kenya’s fintech landscape evolves, Ziidi stands as proof that financial inclusion and robust returns can coexist.
Ready to Start?
Visit Step by Step Insurance for a free investment checklist and personalized Money Market Fund strategy.
Money Market Funds Boom in Kenya: Investors Earning Up to 16%
The financial landscape in Kenya has witnessed a significant shift with the rise of Money Market Funds (MMFs), which now offer returns of up to 16%. This surge in popularity is driven by a combination of favorable economic conditions and the quest for better investment alternatives.
This article delves into the factors contributing to this boom, highlights top-performing funds, and provides insights on how to invest.
What are Money Market Funds?
Definition and Overview
Money Market Funds are mutual funds that invest in short-term, high-quality debt securities. They aim to provide investors with liquidity, safety, and competitive returns.
Types of Money Market Funds
Prime Money Funds: Invest in floating-rate debt and commercial paper.
Government Money Funds: Primarily invest in government securities.
Why the Surge in Money Market Funds?
Current Economic Climate
Kenya’s economic environment, characterized by rising interest rates, has made MMFs an attractive option compared to traditional savings accounts.
Comparison with Traditional Savings Accounts
MMFs typically offer higher returns than bank deposits, making them a preferred choice for many investors. For instance, while average bank deposit rates hover around 11%, MMFs have reported average returns of approximately 14.8%3.
Top Money Market Funds in Kenya
Madison Group
Current Rate: 13.74% p.a.
Features: Strong track record and professional management.
Sanlam Money Market Fund
Current Rate: 13.12% p.a.
Features: Competitive returns with robust risk management.
Cytonn Money Market Fund
Current Rate: 16.61% p.a.
Features: Highest yielding fund in Kenya.
Other Notable Funds
Lofty Corban Money Market Fund: 16.26% p.a.
GulfCap Money Market Fund: 16.25% p.a.
How to Invest in Money Market Funds in Kenya
Minimum Investment Requirements
Most funds require a minimum investment ranging from KES 500 to KES 5,000.
Investment Process
Investors can easily open accounts through digital platforms provided by fund managers, making it accessible for a wider audience.
Benefits of Money Market Funds
High Liquidity: Investors can access their funds quickly.
Low Risk: Investments are primarily in low-risk securities.
Competitive Returns: Higher returns compared to traditional savings accounts.
Risks Associated with Money Market Funds
Interest Rate Sensitivity
MMFs are sensitive to changes in interest rates, which can affect overall returns.
Market Risks
Investors should be aware of potential market fluctuations that could impact their investments.
Read Also
- How to Register for Safaricom’s Ziidi Money Market Fund: This guide provides a comprehensive walkthrough of the registration process for Safaricom’s Ziidi MMF.
(https://stepbystepinsurance.co.ke/2025/01/21/how-to-register-for-safaricoms-ziidi-money-market-fund/) - Top Money Market Funds in Kenya 2025: Comparing the Best Providers: A detailed comparison of the leading money market funds available in Kenya for 2025.
(https://stepbystepinsurance.co.ke/2025/01/10/top-money-market-funds-in-kenya-2025-comparing-the-best-providers/) - How to Choose the Best Money Market Fund in Kenya: Outlines key factors to consider when selecting a money market fund that aligns with your financial goals.
(https://stepbystepinsurance.co.ke/2024/11/25/how-to-choose-the-best-money-market-fund-in-kenya/) - Kenyans Flock to Safaricom’s New Ziidi Money Market Fund as Investments Hit Sh2.85 Billion: Insights into the popularity and investment volume of Safaricom’s Ziidi Money Market Fund.
(https://stepbystepinsurance.co.ke/2025/01/21/kenyans-flock-to-safaricoms-new-ziidi-money-market-fund-as-investments-hit-sh2-85-billion/)
Conclusion
The boom in Money Market Funds in Kenya presents a unique opportunity for investors seeking stable returns with minimal risk. With competitive interest rates and high liquidity, MMFs are becoming increasingly popular among Kenyans looking for better investment options.
As the financial landscape continues to evolve, these funds are likely to play a critical role in shaping investment strategies moving forward.
How to Register for Safaricom’s Ziidi Money Market Fund
Safaricom’s Ziidi Money Market Fund (MMF) has quickly gained popularity among Kenyans, attracting significant investments and offering a user-friendly platform for growing wealth. This innovative financial product is accessible through the M-Pesa platform, making it easier for individuals to invest with minimal barriers.
In this comprehensive guide, we will walk you through the step-by-step process of registering for the Ziidi MMF, ensuring you can take advantage of this exciting investment opportunity.
What is Ziidi Money Market Fund?
Ziidi MMF is a collective investment scheme approved by the Capital Markets Authority (CMA) in Kenya. It allows individuals to pool their resources and invest in low-risk financial instruments such as government securities and treasury bills.
The fund is designed to provide investors with competitive returns, daily interest accrual, and easy access to their funds through M-Pesa.
Key Features of Ziidi MMF
- Low Minimum Investment: You can start investing with as little as KES 100.
- Instant Access: Withdrawals and deposits can be made instantly through M-Pesa.
- Daily Interest Payout: Interest is calculated daily and credited to your account.
- User-Friendly Interface: Accessible via the M-Pesa app or USSD code.
Step-by-Step Guide to Registering for Ziidi MMF
Step 1: Ensure You Have an Active M-Pesa Account
To register for the Ziidi MMF, you must have an active Safaricom line and an M-Pesa account that has been operational for at least three months. This ensures that you meet the eligibility requirements set by Safaricom and the fund managers.
Step 2: Access the M-Pesa App or Dial *334#
You have two options to register for the Ziidi MMF:
- Using the M-Pesa App:
- Download the M-Pesa app from your app store if you haven’t already.
- Open the app and log in using your credentials.
- Navigate to the “Services” tab.
- Select “Financial Services.”
- Look for “Ziidi” in the list of available services or use the search function.
- Using USSD Code:
- Dial *334# on your mobile phone.
- Follow the prompts to access financial services.
Step 3: Opt-In to Ziidi MMF
Once you find the Ziidi option:
- Tap on “Opt-In” or “Register.”
- You will be prompted to provide your personal information, including your ID number and any other required details.
Step 4: Review Terms and Conditions
Before completing your registration, carefully read through the terms and conditions associated with the Ziidi MMF. This step is crucial as it outlines your rights and responsibilities as an investor.
Step 5: Confirm Your Registration
After submitting your information:
- You will receive a confirmation SMS from Safaricom indicating whether your registration was successful or if further information is needed.
- If approved, you can start making deposits into your Ziidi account immediately.
Step 6: Deposit Funds into Your Ziidi Account
To start investing:
- Transfer funds from your M-Pesa wallet to your Ziidi MMF account.
- The minimum deposit amount is KES 100.
You can monitor your investments directly through the M-Pesa app or by dialing *334#.
Benefits of Investing in Ziidi MMF
Investing in Ziidi MMF offers several advantages:
- Accessibility: The integration with M-Pesa allows users to manage their investments conveniently from their mobile devices.
- Liquidity: With instant access to funds, investors can withdraw their money whenever needed without lengthy processing times.
- Competitive Returns: The fund provides better returns compared to traditional savings accounts, making it an attractive option for wealth growth.
- Financial Inclusion: By lowering barriers to entry, Ziidi encourages more Kenyans to invest and save, promoting financial literacy across various demographics.
Frequently Asked Questions (FAQs)
Can Non-M-Pesa Users Invest in Ziidi?
Currently, only registered M-Pesa users can invest in the Ziidi Money Market Fund. If you do not have an M-Pesa account, you will need to create one before registering for Ziidi.
How Can I Monitor My Investment?
You can track your investment performance directly through the M-Pesa app or by using USSD code *334#. The app provides real-time updates on your savings, interest earned, and current interest rates.
Are There Any Fees Associated with Investing in Ziidi?
There are no withdrawal fees when accessing funds from your Ziidi account. However, it’s essential to review any potential fees related to transactions within M-Pesa itself.
What Happens If I Change My Phone Number?
If you change your phone number or SIM card, ensure that you update your M-Pesa account details promptly. You may need to verify your identity again if you switch devices.
Read Also
- Top Money Market Funds in Kenya 2025: Comparing the Best Providers: This article provides a comprehensive comparison of the leading money market funds available in Kenya for 2025, helping you make informed investment decisions.
- How to Choose the Best Money Market Fund in Kenya: This guide outlines key factors to consider when selecting a money market fund, ensuring that you choose an option that aligns with your financial goals.
- Investment Funds in Kenya: Understanding Unit Trusts and Money Market Funds: This article explains the differences between unit trusts and money market funds in Kenya, providing insights into how each investment option works.
Conclusion
Registering for Safaricom’s Ziidi Money Market Fund is a straightforward process that empowers Kenyans to take control of their financial future through accessible investment opportunities. By following this guide, you can easily navigate the registration process and start enjoying the benefits of investing in one of Kenya’s most innovative financial products.
With its user-friendly features and integration with M-Pesa, Ziidi MMF stands out as a promising option for those looking to grow their savings while enjoying liquidity and relatively low-risk investment options.
Take charge of your financial journey today by registering for Ziidi MMF and experience the transformative power of investing in Kenya’s vibrant economy.
Ready to take charge of your financial future? Start investing in a money market fund today! You can begin with as little as KES 500. Explore our options and secure your financial growth by visiting this link to learn more about available money market funds
