Top 10 Money Market Funds in Kenya Offering the Highest Returns in 2025 (Q3/Q4 Update)

• By Clinton Wanjala

• 546

• Last updated Sep 13, 2025

For much of 2025, Kenyan investors have been on a rollercoaster ride with money market funds (MMFs). After months of falling interest rates, August brought a small but welcome rebound.

Investors are now watching September closely, with hopes of further stability before the market heads into the fourth and final quarter of 2025.

While the numbers are still lower compared to the highs of 2024, several MMF’s in the country continue to offer competitive double-digit returns, keeping them attractive to modern savers who are looking for stable income.

If you are still new to Investing in Money Market Funds, financial literacy plays a huge role in understanding how they work. Consider checking our comprehensive beginner guide to money market funds. This guide details all the basics of MMF; How they work, the different types of MMFs, pros and cons, best ways of investing in MMF and so much more. 

Why Have Money Market Rates Been Falling?

If you’ve been tracking MMF returns, there are high chances you’ve noticed the downward trend. According to economist Daniel Kathali, the drop is as a result of broader economic shifts.

According to Mr. Kathali, the downward trend is mainly because:

• Inflation has cooled off, meaning the cost of goods isn’t rising as quickly as it used to.
• The Central Bank of Kenya (CBK) has reduced its base lending rate to below 10%.
• The Treasury has cut back on yields for government securities like Treasury bills.

Since MMFs mainly invest in short-term government instruments, their returns naturally dip when T-bill rates fall as it has been the case lately.

For context, in July 2024, Treasury bills were paying as high as 16%. By mid-August 2025, those numbers had almost halved:

• 91-day bills: 01%
• 182-day bills: 12%
• 364-day bills: 58%

This sharp decline explains why most funds are no longer posting the eye-popping rates seen just a year ago.

Signs of Recovery in 2025

The good news is that after hitting their lowest points earlier this year, MMFs are showing signs of stabilizing. The August 2025 figures suggest that while investors may not get 16% again soon, the market is at least finding balance.

For risk-averse Kenyans who prefer safety and liquidity, MMFs remain one of the best alternatives to savings accounts and even fixed deposits.

Related article:Between MMFs and Bonds, Which One is A Better Investment 

Kenya’s Top-Performing Money Market Funds – August/September 2025

Despite the lower Treasury yields, reports indicate that some funds are still managing to deliver above 10% returns, which is impressive compared to most traditional savings options. Below are the top MMF performers as of August 19, 2025:

1. Cytonn Money Market Fund – 13.22%

Cytonn continues to lead the pack, consistently offering the highest declared returns. It appeals to investors willing to take slightly higher risk for better yields.

2. GulfCap Money Market Fund – 13.11%

Close behind is GulfCap, popular with retail investors looking for competitive returns and strong portfolio management.

3. Nabo Africa Money Market Fund – 13.04%

Nabo Africa has built a reputation for reliability and is a favorite among corporate investors.

4. Lofty-Corban Money Market Fund – 12.61%

Known for its innovative approach, Lofty-Corban remains a solid choice for investors seeking consistency.

5. Orient Kasha Money Market Fund – 12.25%

With its steady growth, Orient Kasha has positioned itself as a mid-tier performer that balances returns and security.

6. Etica Money Market Fund – 12.03%

Etica has quietly maintained competitive yields, appealing to investors who value stability.

7. Kuza Money Market Fund – 12.01%

Kuza’s slight edge above 12% keeps it in the race among the top players.

8. Arvocap Money Market Fund – 11.85%

Not as aggressive as the top three, but Arvocap offers investors dependable returns above the 10% mark.

9. GenAfrica Money Market Fund – 11.24%

GenAfrica’s strong reputation in asset management continues to attract investors despite slightly lower yields.

10. Enwealth Money Market Fund – 11.14%

Rounding out the list, Enwealth still beats the majority of bank savings accounts, making it an attractive option for everyday savers.

If you would like to look at MMF’s that have been performing well this year, read this article on 32 best performing money market funds in 2025. Comparing these two articles will help you understand the rate drops in Kenyan MMFs this year. 

What This Means for Investors

If you’re considering where to invest your money in the remaining quarters of 2025 and next year, here’s what you need to know:

• MMFs remain to be a safer investment compared to most high-risk investments since they rely heavily on government securities.
• Always take note that MMF returns are linked to a nation’s economic policy. What does this mean for you? It means that when inflation drops and CBK cuts rates, MMF yields will also shrink.
• Diversification matters. It’s wise not to put all your savings in one fund. Exploring multiple top performers can help balance returns and risk.

Looking Ahead: Will MMF Interest Rates Rise Again?

While it’s difficult to predict with certainty, analysts believe that unless inflation spikes again, MMF interest rates are likely to remain modest for the rest of 2025 Q3 and Q4. 

That means, investors considering investing in MMF should manage their expectations and focus on consistency rather than chasing the highest yield.

It is worth noting that, money market funds still beat the returns of most savings accounts, making them a good tool for building sinking funds, emergency funds or short-term savings goals.

FAQs

1. Are money market funds safe in Kenya?
   Yes, MMFs are a safe investment choice for Kenyans as they are regulated by the Capital Markets Authority (CMA) and they usually invest mainly in government-backed securities thus making them relatively safe.
2. Can I lose money in a money market fund?
   Losses are rare but not impossible. Market fluctuations and poor fund management could impact returns, though most funds remain stable. It’s thus imperative to do due diligence and research on the best money market funds before investing your money. 
3. How do I choose the best MMF?
   When choosing the best MMF in Kenya, always look beyond just the rate. Smart investors consider management fees, fund reputation, liquidity, and customer service.
4. What’s the minimum amount to invest?
   Most MMFs in Kenya allow entry with as little as KSh 1,000 to KSh 5,000, making them accessible to everyday investors. However, with as low as 100 and 500 shillings, you can invest in MMFs such as Ziidi and Lofty Coban respectively.

Final Takeaway

The golden days of 16%-18% MMF returns may be behind us, at least for now. But August 2025 shows that funds are still delivering strong double-digit rates, this is better compared to traditional savings products. 

If you are a Kenyan at home or abroad looking to grow your money without taking on too much risk, money market funds remain one of the most practical and reliable options in Kenya’s shifting economy.