Money Market Funds Kenya

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.

Why 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):

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:

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.