In the recent past, there has been a significant increase in the popularity of Money Market Funds in Kenya. The reason is that MMFs offer higher returns than bank deposits.  Below we will look at the best Money Market Funds in Kenya. However, before we start, let’s examine what money market funds.

What Is a Money Market Fund?

It refers to an investment account that offers you more interest than what you would get from your typical savings account. It’s a haven to grow money in a low-risk portfolio, especially for this period of financial uncertainty. The investment in MMFs requires highly liquid securities such as cash and debt-based securities with high credit ratings. Most of them have an average maturity rate of fewer than 13 months. The interest rate is between 4% and 10% in Kenya, depending on the fund, and it is paid out annually.

How Do Money Markets Funds Work?

All you have to do to make an MMF investment is choose a bank, insurance, or company that offers what you are looking for. The factors to consider while taking your pick include:

  • Interest rates: Look for a bank that offers guaranteed interest rates
  • Withdrawal limitation: Check the rules and regulations of a particular company before committing
  • Fees: Ensure that you have all the details about bank fees in the specific company
  • Stability and risk: Though most funds are generally safe and conservative, look for a company that is stable with a low affinity to risk
  • Minimum balance: You will need to make sure the minimum balance that is within your affordability range.
  • Withdrawal terms: Pick a fund that has clear withdrawal terms

1.      Zimele Money Market Fund

Also called a “savings plan,” the Zimele fund is convenient and flexible because it offers you a setting where you can save at your own pace.  The contributions from members are combined and invested in safe but high-yielding assets such as treasury bills, fixed deposits, and bonds.

Features

  • It requires a Ksh. 100 minimum deposit
  • The funds are safe and offer a high interest rate
  • No hidden charges
  • M-Pesa transactions for deposits and withdrawal
  • Allow online statements
  • Interest compounded annually
  • It doesn’t have a minimum balance requirement

2.      Sanlam Money Market Fund

It is an ideal investment that delivers higher income levels as compared to deposit accounts. Sanlam is suitable for individuals, joint investors, and corporates who wish to invest for a short period, usually up to 12 months.

Features

  • It has a minimum investment of Ksh. 2500 for an account
  • It doesn’t charge an initial fee
  • Money invested in premium assets
  • Daily calculation of compound interest and a monthly distribution
  • Low-risk fund
  • Cautions its client against impending market volatility

3.      CIC Money Market Fund

It’s a low-risk and highly liquid interest-bearing instrument. CIC is ideal for investors looking to store away funds for future projects and those looking at investing for a short period of under a year.

Features

  • Minimum investment of Ksh. 500 
  • Minimum addition of Kshs. 1000
  • No initial fees
  • Access to money requires a 2 to 4 days
  • Provide monthly statements.
  • Flexible – you can transfer funds to another CICAM account
  • Offers competitive returns

4.      Cytonn Money Market Fund

It’s an ideal investment for those looking at saving up to meet personal goals soon. Cytonn invests in high-level assets that bear high interest.

Features of Cytonn

  • No initial fee
  • Compounds interest daily
  • Safety for your starting capital
  • Competitive rates

5.      Britam Money Market Fund

Britam allows you to plan for your future financial goals by saving for school fees, emergency funds, or saving up for business projects.

Features

  • Yields of up to 10%
  • Minimum investment of Ksh. 1000
  • Provides daily compounding interest
  • Easy to withdraw from Britam
  • Deposits and withdrawals through-M-Pesa or bank account

6.      CBA Group Money Market Fund

The CBA fund focuses on various interest-yielding investments, fixed deposits, and other liquid cash holdings. If you want an investment with the least possible risk, the CBA fund is an excellent choice because it also offers security and stability. It’s also a great choice when there is a lot of market turbulence.

Features

  • No initial fee required
  • Daily calculation and distribution of interest
  • You can reinvest into the fund
  • Minimum investment of Ksh. 5000
  • Service fee of up to 2%

You can contact them for more information through contact@cbagroup.com or +254 20 2884498

7.      Nabo Africa Money Market Fund

It’s a low-risk firm that invests in highly liquid assets in Kenya. Nabo is perfect for those looking for a way to store money with the least risk possible.

Features

  • High-interest yields
  • Minimum investment period of 3 months

8.      NCBA Money Market Fund

NCBA is an excellent money market fund that yields competitive interests in the market.

Features

  • The least allowed investment is Ksh. 5000
  • A minimum additional investment of Ksh. 5000
  • It doesn’t require any initial fee
  • Charges 2%  fee annually
  • Interest calculated daily and distributed monthly.

9.      Stanlib Money Market Fund

Stanlib is a leading fund manager in Kenya owned by Liberty Holding Limited.

Features

  • Preserves your initial capital
  • Offers high liquidity of funds
  • Invests in a broad range of short term debt securities
  • A minimum initial investment of Ksh. 10000
  • An additional investment of Ksh. 5000

10.      Genghis Capital Money Market Fund

Genghis Capital Money Market Fund is a conservative fund perfect for people with a low-risk appetite,

Features

  • Minimum investment of Ksh. 500
  • An additional investment of Ksh. 500
  • Interest is computed daily and distributed to the clients monthly.

Conclusion

The Money Markets Funds above are some of the best in Kenya today. Take your time to go through their features and choose one that fits your investment needs best.