Money Market Funds (MMFs) continue to shine as some of the most reliable and profitable investment options for Kenyans in 2025. These funds are ideal for investors seeking low-risk opportunities with steady returns and high liquidity. They are especially attractive in a market where traditional options like Treasury Bills are offering comparatively lower yields.
As of 2025, the Cytonn Money Market Fund leads the pack with the highest annual rate of 15.58%, translating to a net return of 13.24%. It is followed closely by GulfCap and Kuza Money Market Funds, which posted net returns of 12.58% and 12.03% respectively. These three funds have proven to be top performers, consistently delivering impressive results.
Other strong contenders include Etica Money Market Fund with a 11.95% net return, Lofty Corban at 11.89%, and ArvoCap which achieved 11.21%. Also performing well are funds from Ndovu, Enwealth, and Orient, each offering net returns ranging between 10.77% and 11.10%.
Well-established names such as Old Mutual, Britam, Madison, and Apollo also made it to the top 20, each delivering net returns just above the 10.50% mark. Additionally, Dry Associates, Gen Africa, and Gencap were notable for maintaining steady returns, all surpassing 10%.
The average net return across all top 20 money market funds in Kenya stands at around 10.05%, which is significantly better than the 91-day Treasury Bill rate of 7.5%. This makes MMFs a smarter option for many investors looking for higher yields with minimal risk.
What to Consider Before Investing in a Money Market Fund
- Focus on Net Return: The annual rate may appear attractive, but net return reflects your actual earnings after deductions like taxes and management fees.
- Track Record of Fund Managers: Choose funds managed by reputable companies with a strong history of consistent performance, such as Cytonn, GulfCap, and Kuza.
- Liquidity: A good money market fund should allow you to access your money within 24 to 48 hours, ensuring flexibility during emergencies.
- Management Fees: Lower expense ratios mean more money in your pocket. Always review a fund’s fee structure before investing.
Why Money Market Funds Are a Smart Choice
- Low Risk: These funds invest in safe instruments like Treasury Bills, commercial papers, and fixed deposits.
- High Liquidity: You can easily withdraw your investment when needed without significant penalties.
- Diversification: Risk is spread out across multiple financial instruments, reducing the impact of market fluctuations.
- Expert Management: Your investment is overseen by professionals who aim to maximize returns while safeguarding your capital.
Money market funds remain a solid investment option in Kenya for 2025, especially for those looking to earn stable returns while keeping their money safe. Always research and compare funds before investing, and consider your financial goals and risk tolerance.
