Money market funds are essentially low-risk funds that invest in a diversified portfolio of short-term interest-earning instruments. Over the years, they have become a popular investment option in Kenya, particularly for investors who are looking for low-risk, short-term investments. These funds are managed by professional fund managers who invest in high-quality, short-term debt securities such as government securities, commercial papers, and bank deposits.
Interest rates for money market funds in Kenya can vary depending on various factors such as market conditions, the performance of the underlying securities, and the management fees charged by the fund managers. It’s important to note that money market funds typically offer lower returns compared to other types of funds such as equity funds or bond funds. However, they are considered a safe haven for investors looking to park their money for short periods of time.
Here are some of the money market funds offered in Kenya and their interest rates:
Cytonn Money Market Fund
This fund is managed by Cytonn Asset Managers Limited and they have a daily Yield of 10.15 percent and an Effective annual rate of 10.68 percent. It has a minimum investment is only Ksh 1,000, and there are no minimum top-ups, with the annual management fee being only 1.5%.
Co-operative Bank Money Market Fund
This fund is managed by Co-operative Bank Asset Management Limited and has a yield rate of 9% per annum.
Old Mutual Money Market Fund
This fund is managed by Old Mutual Investment Services (Kenya) Limited, it has a minimum investment of Ksh. 5,000, which yields an annual interest of 9.2%. The fund manager charges a yearly maintenance fee of up to 3.37%, you can top up anything from Ksh 1,000 and enjoy a minimum withdrawal of Ksh 480.
Britam Money Market Fund
This fund is managed by Britam Asset Managers (Kenya) Limited and the annual interest averages 8 – 10 %, and you only need a minimum investment of Ksh 1,000. There’s no initial fee, and they only charge a 2% annual management fee.
ICEA Money Market Fund
This fund is managed by ICEA Lion Asset Management Limited, it has an effective annual yield of 8.6% and a minimum deposit of Ksh 500. One can be able to withdraw their funds within three business days for amounts exceeding Ksh. 10,000 and within 24 hours for those less than Ksh 10,000. The account annual management fee is 2% or about 0.0055% daily.
CIC Money Market Fund
This fund is managed by CIC Asset Management Limited, it has an effective annual rate of 8.71%, and you only need to make a minimum deposit of Ksh 5,000 to get started. CIC charges an annual management fee of 2%, but there’s no initial fee. The minimum top-up is Ksh 1,000, and the interests are compounded daily but distributed monthly.
Zimele Money Market Fund
This fund is managed by Zimele Investment Management Limited and has an annual yield of 9.56%, which is pretty good, and the company charges a 2% annual management fee. It has a minimum investment of Ksh 100 which you can top up anytime. It is also the oldest MMF with a portfolio size is over Ksh 1 billion.
Sanlam Money Market Fund
This fund is managed by Sanlam Investments East Africa Limited and has an effective annual yield is 9.53%, and the minimum investment deposit is Ksh 2,500. It has minimum top-ups of Ksh 1,000, and the MMF account attracts an annual management fee of 1.2%.
Madison Money Market Fund
This fund is managed by Madison Asset Management Services Limited and has an interest rate is 9.62% which is compounded monthly. The minimum investment is Ksh 5,000, with the minimum investment top-up being Ksh 1,000. You can be able to access your funds with 2-3days and it charges a 2% annual management fee.
Absa Money Market Fund
The Absa MMF is managed by Absa Bank and is popularly known as the Absa Shilling Money Market Fund. It has an average interest rate of 9.63 – 9.91% with the minimum investment amount being Ksh1,000, and an equivalent minimum top-up of Ksh 1000.
Adam Money Market Fund
The Adam (Africa Diaspora Asset Managers) MMF is managed by Adam Capital, it earns an annual interest of up to 10%, and you can withdraw the funds within 48 hours. The minimum investment is only Ksh 100 with no maximum limit on monthly topups. An interesting feature of this MMF is that it allows you to take loans against the unit.
Britam Money Market Fund
The fund is managed by Britam Asset Managers and the annual interest averages 8 – 10 %, and you only need a minimum investment of Ksh 1,000. There’s no initial fee, and you only need to incur a 2% annual management fee. You can also top up anytime (Ksh 1,000 minimally), and the interests are earned daily, though compounded annually.
NCBA Bank Money Market Fund
The NCBA MMF allows you to earn an annual interest of 9% in a minimum investment of Ksh 5,000. The minimum top-up is also Ksh 5,000, but no joining or existing fees exist.
Nabo Africa Money Market Fund
The Nabo Africa MMF has a minimum initial investment is Ksh 1,000,000, and the minimum top-up after that is Ksh 10,000. It has an annual interest rate of 10.18% which you cab be able to access within 2-3 days.
It’s important to note that interest rates for money market funds are subject to change and investors should always check with the respective fund managers for up-to-date information.