Money Market Funds (MMFs) continue to be a cornerstone of low-risk investing in Kenya, offering liquidity, stability, and competitive returns for savers and investors alike.
As short-term vehicles that pool funds into treasury bills, commercial paper, fixed deposits, and other high-quality securities, MMFs provide an attractive alternative to traditional savings accounts, especially amid fluctuating economic conditions.
In September 2025, the Kenyan MMF landscape showed signs of stabilisation after months of gradual declines, influenced by easing inflation, lower treasury bill yields, and ample market liquidity.
This update draws on the most recent data as of September 29, 2025, highlighting top performers, key trends, and investment considerations.
With the Central Bank of Kenya (CBK) maintaining steady monetary policy and interbank rates averaging around 9.48%, MMFs delivered effective annual yields ranging from 6.5% to 13.1%, still outpacing inflation (estimated at 3.5-4% for the year) but down from the double-digit peaks of 2024.
Performance Snapshot: Top MMFs as of September 29, 2025
The month closed with Ndovu MMF leading the pack at an impressive 13.1% effective annual yield, followed closely by perennial favourite Cytonn at 12.8%.
Overall, the market average stayed around 10.5%, a slight dip from August’s 11.2% due to maturing high-yield treasuries being rolled over into lower-rate instruments.
Here’s a ranked table of the top 15 MMFs by effective annual yield (post-management fees and taxes where applicable).
Yields are gross unless noted as net; actual investor returns may vary slightly based on fund specifics.
| Rank | Fund Name | Effective Annual Yield (%) | Change from Previous Week |
|---|---|---|---|
| 1 | Ndovu MMF | 13.1 | Stable |
| 2 | Cytonn MMF | 12.8 | +0.1 |
| 3 | Gulfcap MMF | 12.2 | Stable |
| 4 | Nabo Capital MMF | 12.1 | -0.2 |
| 5 | Lofty-Corban MMF | 12.1 | Stable |
| 6 | Etica MMF | 12.1 | Stable |
| 7 | Arvocap MMF | 11.9 | -0.3 |
| 8 | Kuza MMF | 11.5 | +0.4 (Top Gainer) |
| 9 | Enwealth MMF | 11.1 | Stable |
| 10 | Madison MMF | 11.0 | Stable |
| 11 | Old Mutual MMF | 10.9 | Stable |
| 12 | Jubilee MMF | 10.7 | +0.3 |
| 13 | Britam MMF | 10.6 | +0.2 |
| 14 | GenAfrica MMF | 10.5 | Stable |
| 15 | Orient Kasha MMF | 10.0 | Stable |
Data sourced from Kenya Money Market Funds Portal updates. Yields reflect daily compounding and are subject to weekly fluctuations.
READ ALSO:How Smart Investors Choose the Best MMF in Kenya This Year
Notable movers included Kuza (up 0.4% week-on-week), Jubilee, Britam, Faulu, and Stanbic as gainers, boosted by strategic portfolio adjustments.
On the flip side, Absa, Nabo, and Arvocap saw minor dips amid broader yield compression.
Key Trends Shaping September 2025
Declining Yields Amid Economic Cooling
MMF returns have softened from 2024 highs (around 15%) to sub-13% territory, primarily due to falling 91-day treasury bill rates from 16% in mid-2024 to below 9% by September 2025.
This reflects lower inflation (down to 3.5% in February, stabilising around 4% later) and improved liquidity, with banks holding KSh 2.4 billion in excess reserves. As MMFs reinvest in these lower-yield assets, expect continued moderation unless CBK hikes rates.
Liquidity Surge in the Money Market: CBK’s weekly bulletin noted interbank trading volumes jumping to KSh 17.2 billion from KSh 7.9 billion the prior week, signalling robust activity without volatility. This stability benefits MMFs, which thrive on predictable short-term rates.
Fund Size and Accessibility Growth:
Assets under management (AUM) for top funds like CIC (over KSh 87 billion) and Cytonn continue to expand, driven by low entry barriers; many now accept just KSh 100-1,000 via USSD (*809# for Cytonn, *778# for Britam, etc.).
Mobile integration has democratised access, with over 100 billion KSh in total MMF AUM as of mid-2025.
Outperformance vs. Alternatives: Even at current levels, MMFs beat savings accounts (2-4%) and fixed deposits (7-9%), offering daily liquidity without penalties. Compared to inflation, real returns remain positive at 6-9%.
Why Invest in MMFs Now?
Despite the yield dip, September’s environment favours MMFs for conservative portfolios:
- Safety First: Regulated by the Capital Markets Authority (CMA), with principal protection via diversified, low-risk assets.
- Passive Income: Earn daily interest, ideal for emergency funds or short-term goals.
- Tax Efficiency: Yields are taxed at 15% withholding, but net returns still shine.
For a quick projection: Investing KSh 100,000 in Ndovu at 13.1% could yield ~KSh 13,100 annually (pre-tax), growing to KSh 113,100 by year-end.
How to Get Started
- Choose a Fund:Prioritise based on yield, fees (typically 1.5-2%), and minimums. Top picks: Ndovu for max returns, Cytonn for reliability.
- Open an Account: Use apps (e.g., Cytonn App) or USSD for instant setup with no paperwork needed.
- Invest and Monitor: Start small, track via portals like MMFKenya on X, and withdraw anytime (T+2 settlement).
- Diversify: Blend with bonds or equities for higher growth potential.
Looking Ahead to Q4 2025
With CBK’s Financial Inclusion Strategy eyeing lower mobile fees by 2028 and potential rate stability, MMFs should hold steady at 10-12%.
Watch for October auction results; if T-bill rates rebound, yields could tick up. Investors: Don’t chase peaks; consistency compounds wealth.
Stay tuned for our October update. Questions? Drop a comment below.
Disclaimer: Yields are indicative and not guaranteed. Consult a financial advisor for personalised advice. Data fact-checked against official sources as of September 29, 2025.
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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