As Kenya navigates tough economic conditions—benchmark interest rates up to 13.5% and inflation at 6.8%—money market funds (MMFs) are fast becoming the go-to safe haven for investors.
The Capital Markets Authority (CMA) has released updated yield data for September 2025, giving a fresh snapshot of the sector.
In August 2025, the Central Bank of Kenya raised its policy rate by 75 basis points, boosting short-term returns.
The Kenya National Bureau of Statistics reported a 12% rise in individual investments in July 2025.
The Nairobi Securities Exchange has logged a 20% increase in MMF transactions this year.
New tax incentives in the 2025/26 budget have further sweetened the deal.
Analysts forecast a 15% growth in East Africa’s MMF assets by 2026 (Business Daily Africa, Sept 2025).
All signs point to investors turning to MMFs for both stability and competitive returns.
Current MMF Yields (as of Sept 2025)
Top Performers:
- GulfCap MMF – 13.1% (highest return, but higher risk profile)
- Nabo Africa MMF – 12.6% (strong governance and transparency)
- Lofty-Corban MMF – 12.4% (diversified strategy)
Upper-Mid Tier (11–12%):
- Orient Kasha MMF – 11.9%
- Arvocap MMF – 11.8%
- Etica MMF – 11.8% (ethical investment focus)
- Kuza MMF – 11.6%
- Mali MMF – 11.2%
- GenAfrica MMF – 11.1%
- Enwealth MMF – 11.1%
- Britam MMF – 11.0%
- Jubilee MMF – 11.0%
Mid Tier (10–11%):
- Old Mutual MMF – 10.7%
- Madison MMF – 10.7%
- Apollo MMF – 10.2%
Lower-Mid Tier (9–10%)
- Dry Associates MMF – 9.9%
- Faulu MMF – 9.9%
- KCB MMF – 9.6%
- Sanlam MMF – 9.4%
- Absa Shilling MMF – 9.2%
Lower Tier (below 9%):
- Co-op MMF – 8.9%
- ICEA LION MMF – 8.9%
- Genghis MMF – 8.7%
- CIC MMF – 8.4% (largest fund by assets, KSh 68.4B in Dec 2024)
- Mayfair MMF – 8.4%
- Ziidi MMF – 7.9% (Safaricom-linked)
- African Alliance Kenya MMF – 7.5%
- Equity MMF – 4.6% (capital preservation focus)
What the Numbers Tell Investors
- Double-digit yields (12–13%) like GulfCap and Nabo offer higher returns but may reflect aggressive strategies.
- Mid-range funds (10–11%) balance risk and reward, appealing to steady-growth investors.
- Lower yields (below 9%) suit conservative savers prioritising safety over returns.
The surge in MMF activity at the NSE (+20% this year) signals rising investor trust, though yields remain sensitive to monetary policy shifts.
Key Takeaways for Investors
- MMFs are benefitting directly from Kenya’s tighter monetary policy.
- Investors should weigh risk appetite—chasing 13% vs. securing 8% with more stability.
by geoffrey mbuthia
