In Kenya’s dynamic investment scene, Money Market Funds (MMFs) remain a cornerstone for retail and institutional investors seeking low-risk, high-liquidity options.
These funds pool money into short-term securities like Treasury bills, commercial paper, and bank deposits, offering better returns than traditional savings accounts while keeping capital safe.
As of October 2025, the MMF sector boasts over KSh 400 billion in assets under management (AUM), with yields averaging around 9-10% net annually, down from 2024 highs due to falling Central Bank Rate (CBR) influences on Treasury bill rates.
The “Big 5” MMFs, including Sanlam Money Market Fund, CIC Money Market Fund, Britam Money Market Fund, Absa Shilling Money Market Fund, and ICEA Lion Money Market Fund, command the lion’s share of AUM, holding about 60% of the market.
Sanlam leads with over KSh 92 billion in AUM as of mid-2025, followed closely by CIC at around KSh 85 billion. These giants prioritise stability and scale, but their yields often lag behind nimbler players amid a cooling interest rate environment.
For investors chasing alpha without straying too far from safety, emerging MMFs are stealing the spotlight. These funds, typically with AUM under KSh 10 billion, leverage responsive strategies and digital platforms to deliver superior returns.
Drawing from the latest data as of October 6, 2025, here are the top five emerging MMFs shaking up the space.
Yields are net effective annual rates after 15% withholding tax, reflecting real-time performance amid declining T-bill auctions (now averaging 8-9%).
1. Ndovu Money Market Fund
Ndovu MMF, managed by Ndovu Invest, tops the charts with a rock-solid 13.1% yield unchanged week-over-week, outpacing inflation by a wide margin.
Launched in 2023, this fund has surged in popularity thanks to its minimum investment of just KSh 100 and seamless mobile app integration, appealing to young professionals and gig economy workers.
With AUM nearing KSh 2 billion, Ndovu’s focus on diversified short-term instruments has driven 25% YoY growth. Ideal for emergency funds, it processes redemptions in T+1 days.
2. Cytonn Money Market Fund
Cytonn’s flagship MMF comes in at 12.7%, a slight dip from last week’s 12.8% but still among the elite. Backed by Cytonn Investments’ real estate expertise, this fund blends T-bills with high-grade corporate paper for resilience.
AUM stands at over KSh 15 billion, but it’s considered “emerging” relative to the Big 5 due to its aggressive yield targeting.
Minimum entry: KSh 5,000. It’s a favourite for mid-term savers, with historical returns beating the sector average by 1-2% annually.
READ ALSO:How Sanlam and ICEA Lion MMFs Stack Up for Low-Fee Investors in 2025
3. Nabo Africa Money Market Fund
At 12.3% (up 0.2% WoW), Nabo Africa MMF exemplifies fintech innovation. Tied to Nabo Capital, it offers zero-fee transfers via USSD (*271#) and a KSh 100 minimum, making it accessible for unbanked Kenyans.
AUM has ballooned to KSh 4 billion since its 2022 debut, fuelled by partnerships with mobile money providers. Its edge? Real-time yield tracking and ESG-focused allocations, attracting millennial investors eyeing sustainable growth.
4. Lofty-Corban Money Market Fund
Lofty-Corban delivers 12.0%, holding steady despite a minor WoW dip. This joint venture between Lofty and Corban Capital emphasises balanced portfolios, with 70% in government securities.
AUM remains at KSh 3.25 billion, and its KSh 1,000 minimum suits families building education funds. What sets it apart: Transparent quarterly reports and a 2% management fee cap, yielding net returns that have grown 18% YoY.
5. Etica Money Market Fund
Rounding out the top five, Etica MMF yields 12.1% with no WoW change. Managed by Etica Capital, it’s geared toward inclusivity with a KSh 100 entry point and student-friendly features like deferred fees.
AUM at KSh 6.6 billion marks it as a fast riser, up 30% from 2024, thanks to community outreach in rural areas. Perfect for beginners, it boasts T+0 redemptions for small amounts.
| Fund | Yield (Oct 6, 2025) | Min. Investment | AUM (Est. 2025) | Key Strength |
|---|---|---|---|---|
| Ndovu | 13.1% | KSh 100 | KSh 2B | App-based accessibility |
| Cytonn | 12.7% | KSh 5,000 | KSh 15B | Diversified high-grade assets |
| Nabo Africa | 12.3% | KSh 100 | KSh 4B | Fintech integration |
| Lofty-Corban | 12.0% | KSh 1,000 | KSh 3.25B | Balanced, transparent portfolios |
| Etica | 12.1% | KSh 100 | KSh 6.6B | Inclusive for new investors |
These emerging funds aren’t just about yields; they’re innovating with tech, lowering barriers, and adapting to Kenya’s 4.5% inflation rate.
Compared to the Big 5’s sub-10% averages (e.g., Sanlam at 9.5%, CIC at 8.5%), they offer 2-4% more bang for your buck.
Why Go Beyond the Big 5 in 2025?
The MMF market is maturing, with CMA regulations ensuring all funds maintain liquidity ratios above 20%.
Emerging players like these are capitalising on digital adoption; over 60% of new investments now come via apps.
However, yields may soften further if the CBR drops to 10% by year-end. Diversify across 2-3 funds, monitor weekly via platforms like MMFKenya, and remember: past performance isn’t a guarantee, but liquidity is.
Ready to invest? Start small, compare fees (typically 2%), and consult an advisor. In 2025, the future of Kenyan savings is emerging, and it’s brighter than ever. What’s your pick? Share in the comments!
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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