The Best Money Market Funds in Kenya

Looking for a safe way to grow your money in Kenya without gambling it all in stocks or crypto? You’re not alone. More Kenyans are turning to money market funds (MMFs) as a low-risk investment option that offers better returns than traditional savings accounts. Whether you’re saving for school fees, a business, or just building your emergency fund, MMFs could be your secret weapon in 2025.

In this article, we’ll explore the best-performing money market funds in Kenya, how they work, what to watch out for, and how to choose the right one for your financial goals. We’ll also give you a full ranking of 32 MMFs using the latest data available as of March 2025.

What is a Money Market Fund (MMF)?

A money market fund is a type of investment that pools money from many investors and puts it into short-term, low-risk financial assets like Treasury Bills, commercial papers, and bank deposits. It’s a way for you to earn interest daily without needing to manage the investment yourself.

These funds are managed by licensed professionals and are regulated by the Capital Markets Authority (CMA) in Kenya. Most MMFs allow you to start with as little as Ksh 1,000 and you can withdraw your money within 24 to 72 hours.

Top Performing Money Market Funds in Kenya (March 2025)

Below is a ranking of the best MMFs in Kenya based on their annual interest rate and net return (after taxes and fees). Data was sourced from fund manager reports.

Key Takeaways

• Top Performers: Cytonn, GulfCap, and Kuza are the leaders with net returns above 12%.
• Ziidi MMF, previously known as Mali by Safaricom, offers ease of use via M-Pesa but has lower returns (6.43%).
• Equity MMF ranks last in terms of returns.
• The average net return across the board is around 10.05%, better than the 91-day Treasury Bill rate of 7.5%.

How to Choose the Right Money Market Fund

Here are four things to consider before picking an MMF:

1. Net Return vs. Gross Return

Always check the net return after tax and fees. A fund showing 15% gross might only give you 12% in hand.

2. Accessibility

Some funds like Ziidi (via M-Pesa) offer instant access. Others like Cytonn may have longer withdrawal times.

3. Fund Manager Reputation

Go with fund managers who are regulated and transparent. Do your research or talk to a licensed financial advisor.

4. Fees and Charges

Higher management fees eat into your profits. Lower fees = better net returns.

Benefits of Investing in MMFs

• Low Risk: They invest in stable instruments like T-bills.
• High Liquidity: You can access your money within 24–72 hours.
• Daily Interest: Your money earns interest every single day.
• No Experience Needed: Professionals manage the fund on your behalf.

FAQs About Money Market Funds in Kenya

Q1: Are MMF returns guaranteed?

No. Returns can fluctuate depending on market conditions. But they’re generally more stable than stocks.

Q2: How do I start investing in a MMF?

Just pick a fund, fill in the application form (online or in-person), and deposit money via bank or M-Pesa.

Q3: Are MMF returns taxed?

Yes. A 15% withholding tax applies on your interest earnings. This is usually deducted before payout.

Q4: Is it better than a savings account?

Yes. Most savings accounts offer around 2–4% per year, while top MMFs are giving you 10–13% net returns.

Q5: Can I lose money in a MMF?

It’s rare, but possible. That’s why it’s important to choose a well-managed, regulated fund.

Final Thoughts

Money Market Funds are not just for rich investors or finance nerds. They’re for anyone who wants to build wealth with peace of mind. Whether you want high returns (like Cytonn and GulfCap), easy access (like Ziidi), or a balance of both, 2025 is a great year to start.

But always remember: don’t just chase returns. Consider safety, access, and reputation. Investing is personal, and your goals matter more than flashy numbers.

Do your homework. Talk to advisors. And let your money work for you — one interest day at a time.

Editor’s Note: This guide is based on publicly available data from March 2025. Rates are subject to change, and readers are encouraged to verify with fund managers before investing.

Stay tuned to Fineducke for more easy-to-understand financial insights tailored for the Kenyan youth and smart savers like you.