Which is the Best Money Market Fund in Kenya?

One of the safest ways to invest your money and have it earn some returns – rather than saving money in the bank -is investing in Money Market Funds.

That said, one of the key things you must give serious thought to is the company you want to put your hard-earned money in.


You don’t want to lose your cash after going for a company that promises an abnormally high return only for the company to start taking you round in circles when you want to withdraw your money.

And so to point you in the right direction, this article will answer the question: Which is the best money market fund in Kenya?

Read it to the end…

Which is the Best Money Market Fund in Kenya?

Now, I have rated the most popular money market funds in Kenya based on these considerations:

  • Highest rate of return for the last few years– The highest rate of return for MMFs in Kenya has been between 8-11% for the best money market funds in Kenya.
  • Responsiveness – You want a money market fund that will pick your calls or respond to your email or whatsapp messages instantly when you have a question.
  • Promptness of payment– You want an MMF that will pay you as soon as you place a request to get your money back.
  • Financial strength and stability– If you put your cash in a financially stable company, you are likely to have peace of mind for years especially when you have a large amount to invest since the company is unlikely to collapse with your funds.


Which is the Best Money Market Fund in Kenya?

Well, overall, I would go for CIC Money Market Fund.

Yeah, CIC won’t always pay the highest yield in Kenya but other than that, they tick all the other important boxes…

You see, CIC pays promptly (sometimes in just 24 hours), they have very professional staff who attends to your questions pretty much immediately you raise them, and most importantly, CIC MMF has always been 100% safe.


More about CIC Money market Fund

CIC is rated as the best money market fund in Kenya.

In fact, CIC has been managing MMFs for over 3 decades so they definitely know what they are doing.

Also, at the time of writing this, CIC’s assets under management (AuM) base stands at 40% of all the cash invested with Money market funds in Kenya.

In short, it has the largest AuM in Kenya currently.

Regarding their interest percentage, CIC interest yield has not dropped below 8.00% for the last 5 years (and they have even paid around 10% a few times).

That’s not bad at all!

Does CIC have a digital platform?

Well, you can always top up via MPESA but you need to first register with them.


Which is the best performing money market fund in Kenya?

In terms of performance, Cytonn has consistently paid the highest return but if you follow business news in Kenya, you might have heard some negative stories about them.

The other good performers (in no particular order) are:

· Zimele Market Fund

Overall, Zimele has very good reviews online so it seemingly can be a great bet as well.

Zimele has one major advantage: you can save from as low as Kshs. 100.


· Nabo Africa MMF

Nabo has been having decent returns for quite some time now.

Keep in mind that Nabo capital is a part of centum investment company.


· Sanlam MMF

Sanlam’s MMF is not that old so they have a lot of room for growth.

The good news is that they seem to have started on a good footing.


· Madison MMF

Madison has been a top 6 MMF when it comes to yield rates for a long time.


On the other hand, Old Mutual has been offering one of the lowest yields on money market in the market.

They have an average rate of about 5% for the last three years which is, to put it kindly, very dismal.

Here is the thing:

If you want to invest with the best performer, be sure to check the rates daily in the business daily or the nation newspaper.

They are always published then choose one that has a good interest rate (They all update interest rates on weekly basis depending on how their investment portfolios are doing).


Money market fund calculator Kenya

Want to know how to calculate and estimate returns from the MMF of your choice?

Well, the best way out is to check on the GoK Treasury bill rates. This is so because most of the pooled funds end up being invested in the government’s treasury bills.


  1. If the 91-day Treasury bill rate is 8%. You expect that as your minimum gross return from your preferred MMF (consider a margin of +/-0.8)
  2. In case the 364-day T-bill rate is 9%, then that is the maximum gross yield you should expect from your MMF. Again, consider a margin of +/- 0.8.

That is applicable because Treasury bill rates increase or decrease based on market forces.

Quick Note: What they don’t tell you is that there is a 15% withholding tax + 2% service fee.

That means that an 11.7% p.a interest rate on 5000 compounded daily would translate to 600 Gross earning.

Then you take 17% + withdrawal fees from the Kshs. 600.

To be clear, the 2% service fee is one off while the 15% tax is on the earned income and it depends on your investment period.

Please note that the service fee and withholding tax rate may change at short notice.

Which is the Best Money Market Fund in Kenya? -Final Words

MMF is one of the safest investments no matter how low the interest rates are compared to other different investments.

For example, people will tell you that Bitcoin has a higher return but they don’t tell you that it’s a super risky investment.

And just to remind you, CIC Money Market Fund is my favorite MMF in Kenya for the reasons I have given above

Of course, there are some higher-yielding money market funds in Kenya but we have not included them in our list for various reasons (for example, complaints about delayed payment from clients).

And again, rates should not be your number 1 consideration when choosing an MMF to invest in.

Just before I go, ensure your Money Market Fund meets the following basic requirements before investing:

  • Regulated by CMA
  • Has Trustees and Custodians regulated by the CMA
  • Has adequate financial strength
  • Has a reasonable AUM base
  • Offers excellent customer services
  • Has flexible means of funds transfer, deposits, and withdrawals
  • Ensures the security of your initial (principal) investment

Also, thoroughly do your background checks before investing until you personally understand your MMF company- that’s the only way you can avoid a rude shock when you want to exit.

And if you can’t figure out where to put your money, get a qualified financial advisor- he/she will guide you professionally.


PS: Here is a link to useful calculators to help you plan your investments/savings/retirement


Best Companies to Invest in Kenya (in the short term and long

Best investment companies in Kenya and opportunities offered

How to Buy Safaricom Shares in Kenya (step by step)

How to Make Money from Treasury Bonds in Kenya

How to buy shares in Kenya : Step-by-step guide


Share with a friend

Leave a Comment