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.
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