Money market funds are essentially low-risk funds that invest in a diversified portfolio of short-term interest-earning instruments. 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 with the highest interest rates this year.
Lofty Corban Money Market Fund
The fund is managed by Lofty-Corban Investment Limited is a CMA-certified and RBA-endorsed financial institution offering various financial management and investment services. It has a minimum investment of only Ksh 1,000 and an effective annual rate of 12.68%.
Etica Money Market Fund
This fund is managed by Etica Capital and is one of the newest money market funds in the market. It has a minimum investment of only Ksh 100 and an effective annual rate of 12.51% per annum and a 2% management fee.
Cytonn Money Market Fund
This fund is managed by Cytonn Asset Managers Limited and they an effective annual rate of 11.50%. 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%.
GenAfrica Money Market Fund
This money market fund is managed by GenAfrica Asset Managers which is a leading fund manager with over 25 years of experience. They specialise in the management of institutional and retail funds overseeing investment funds in excess of USD 3.5 Billion for over 100 clients. The fund offers an effective annual rate of 11.26%.
Nabo Africa Money Market Fund
The fund is managed by Nabo Africa Capital Ltd, they an effective annual rate of 1o.91%. The minimum initial investment is Ksh 1,000,000, and the minimum top-up after that is Ksh 10,000.
Kuza Money Market Fund
The Kuza Money Market Fund ecosystem features Kuza Asset Management as the Fund Manager, Cooperative Bank of Kenya as the Trustee, and KCB Bank Limited as the Custodian. It takes a minimum of Ksh 5,000 to join Kenya Market Fund as an investor and a minimum top-up of Ksh 1,000 after joining. Kuza also charges an annual management fee of 2%. They an effective annual rate of 1o.59%.
Emwealth Money Market Fund
The fund is managed by Enwealth Financial Services whose mission is economic empowerment in the country. They offer an effective annual rate of 1o.54%.
Apollo Money Market Fund
This fund is run by APA Insurance and they invest in high-yielding investment instruments like treasury bills, government bonds, commercial papers, fixed deposits, and corporate bonds. They have an initial investment of Ksh 1,000 and an equivalent minimum top-up amount. With a management fee of up to 2% and an effective annual rate of 10.37%.
GenCapHela Imara MMF
The fund is managed by Genghis Capital and it allows you only to deposit a minimum of Ksh 500, which is subject to an annual management fee of 2%. The minimum top-up is Ksh 500 and offers a 2 – 4-day liquidity. They offer an effective annual rate of 10.05%.
Madison Money Market Fund
This fund is managed by Madison Asset Management Services Limited and has an interest rate is 10% 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.