Money market funds (MMFs) have become one of the most popular investment options in Kenya for savers seeking higher interest rates without taking on too much risk. These are collective investment schemes that pool investors’ money to invest in safe, short-term debt instruments like Treasury bills, bank deposits, and commercial paper. In essence, an MMF lets you earn interest comparable to a fixed deposit or T-bill while enjoying the flexibility to withdraw your cash when needed. It’s no surprise that Kenyans are flocking to MMFs – they offer better returns than ordinary bank accounts, are relatively low risk, and provide quick access to your money.
How do money market funds work?
When you invest in an MMF, your money is combined with that of other investors and managed by a professional fund manager. The fund manager invests in a diversified mix of short-term, interest-bearing instruments. The returns from these investments (interest income) are then passed back to investors as yield. Yields are quoted as an annualized interest rate, which is the effective annual return you would earn if the current rates were sustained for a year. Importantly, MMF yields in Kenya are typically given net of management fees but before withholding tax (15% tax is withheld from interest earnings by law). Even after taxes, MMFs often outperform regular savings accounts. For context, the average money market fund yield in mid-2025 was around 10.7%, compared to about 8.4% average bank deposit rate. This means MMFs can significantly boost your savings growth while keeping your capital safe.
Why are MMFs so popular in Kenya?
First, they offer capital preservation and stability – since they invest in government-backed or high-quality debt, the risk of losing money is very low. Second, they provide liquidity – you can typically withdraw funds within 2–4 working days (and some funds allow instant redemptions via mobile). Third, many MMFs have low entry barriers, allowing minimum investments as little as KES 100 or KES 1,000, which makes them accessible to ordinary Kenyans. Finally, the convenience is a big draw: several fund managers have integrated with mobile money (M-Pesa) or online platforms, so you can open an account and top-up via your phone without visiting a bank. In short, MMFs are an easy and reliable way to make your money work harder, which explains why by mid-2025 Kenyans had invested over KES 370 billion in unit trust funds (with MMFs making up about 62% of that).
However, it’s worth noting that MMF rates have been on a downward trend in 2025 as overall interest rates in the economy fell. The Central Bank’s easing of monetary policy and declining Treasury bill yields have led to softer MMF returns across the industry. For instance, the average MMF yield dropped from about 12.6% in Q1 2025 to 11.1% in Q2 2025. Still, some funds have managed to stay ahead of the pack with relatively higher payouts. Below, we rank the top 10 highest-paying money market funds in Kenya as of October 2025, based on their annualized returns. Each fund listing includes the provider, current yield, minimum investment, and notable features or benefits. After the list, we’ll also discuss how to choose the best MMF for your needs.
Summary of Top 10 Kenyan MMFs (October 2025)
| Rank | Fund (Provider) | Annualized Return | Min. Investment |
|---|---|---|---|
| 1️⃣ | Ndovu Money Market Fund (Ndovu) | ~13.0% p.a. | KES 500 |
| 2️⃣ | Cytonn Money Market Fund (Cytonn Asset) | ~12.5% p.a. | KES 1,000 |
| 3️⃣ | Nabo Africa Money Market Fund (Nabo Capital) | ~12.4% p.a. | KES 100,000 |
| 4️⃣ | GulfCap Money Market Fund (GulfCap Inv. Bank) | ~12.3% p.a. | KES 1,000 |
| 5️⃣ | Lofty-Corban Money Market Fund (Lofty-Corban) | ~12.0% p.a. | KES 1,000 |
| 6️⃣ | Kuza Money Market Fund (Kuza Asset) | ~11.8% p.a. | KES 1,000 |
| 7️⃣ | Etica Money Market Fund (Etica Capital) | ~11.6% p.a. | KES 100 |
| 8️⃣ | GenAfrica Money Market Fund (GenAfrica) | ~11.1% p.a. | KES 500,000 |
| 9️⃣ | ArvoCap Money Market Fund (ArvoCap Asset) | ~10.7% p.a. | KES 3,000 |
| 🔟 | Orient Kasha Money Market Fund (Orient Asset) | ~10.6% p.a. | KES 5,000 |
(Annualized returns are as of Q3/Q4 2025 and subject to change; “p.a.” = per annum. Note: Yields are net of fees but before 15% withholding tax unless stated otherwise.)
1. Ndovu Money Market Fund (Ndovu)
The Ndovu Money Market Fund leads the market with one of the highest yields at around 13% annualized. Ndovu is a CMA-licensed digital investment platform that makes investing seamless.
Provider: Ndovu (Waanzilishi Capital Ltd).
Minimum Investment: KES 500 – highly accessible even to small savers.
Notable Features: Digital sign-up via the Ndovu app, M-Pesa deposits, daily compounding, and no lock-in period. Interest is paid monthly and can be reinvested automatically. Backed by professional custodians and trustees, Ndovu combines convenience, safety, and a strong return profile.
2. Cytonn Money Market Fund (Cytonn Asset Managers)
A consistent top performer, Cytonn MMF offers about 12.5% annualized return in 2025.
Provider: Cytonn Asset Managers Ltd.
Minimum Investment: KES 1,000 (top-ups from KES 100).
Notable Features: High yield relative to peers, daily interest accrual, same-day M-Pesa withdrawals, and no entry or exit charges. Cytonn’s active management strategy focuses on optimizing returns through diversified short-term investments.
3. Nabo Africa Money Market Fund (Nabo Capital)
Nabo Capital’s MMF offers approximately 12%+ annualized return, placing it firmly in the top three.
Provider: Nabo Capital (subsidiary of Centum Investment).
Minimum Investment: KES 100,000.
Notable Features: Focused on capital preservation, daily accrual, and monthly payouts. Ideal for high-net-worth individuals seeking stability, professional management, and strong governance under Centum’s oversight.
4. GulfCap Money Market Fund (GulfCap Investment Bank)
GulfCap MMF is one of the best-performing Shariah-compliant MMFs in Kenya, yielding about 12.3% p.a.
Provider: GulfCap Investment Bank (GCIB).
Minimum Investment: KES 1,000 (top-ups from KES 100).
Notable Features: Ethical finance model, monthly income distribution, and strong yields for a fund launched less than two years ago. It is well-managed and appeals to both Muslim and non-Muslim investors seeking ethical investments with excellent returns.
5. Lofty-Corban Money Market Fund (Lofty-Corban)
Lofty-Corban’s MMF offers an impressive 12.0% annualized yield, making it one of the most competitive small fund managers in the country.
Provider: Lofty-Corban Investments.
Minimum Investment: KES 1,000.
Notable Features: High yield, no withdrawal penalties, and great customer service. With around KES 3.8 billion AUM, Lofty-Corban continues to deliver exceptional performance relative to its size.
6. Kuza Money Market Fund (Kuza Asset Management)
The Kuza Money Market Fund remains one of the highest-paying new entrants, returning about 11.8% p.a.
Provider: Kuza Asset Management Limited.
Minimum Investment: KES 1,000.
Notable Features: Short initial lock-in (2 weeks), monthly income option, and strong digital customer support. Kuza’s fast growth and competitive rates make it one of Kenya’s most promising funds for young investors.
7. Etica Money Market Fund (Etica Capital)
Etica’s MMF has quickly gained popularity thanks to its high yields and ultra-low entry requirements. It currently offers about 11.6% annualized.
Provider: Etica Capital Ltd.
Minimum Investment: KES 100.
Notable Features: Mobile-friendly investing, daily compounding, and transparent performance updates. Etica’s approach of combining fintech efficiency with strong fund management has attracted thousands of new retail investors.
8. GenAfrica Money Market Fund (GenAfrica Asset Managers)
A long-standing and reputable player, GenAfrica MMF delivers about 11.1% gross annualized returns, focusing on large investors.
Provider: GenAfrica Asset Managers.
Minimum Investment: KES 500,000.
Notable Features: Conservative portfolio with heavy government securities exposure, professional management, and strong institutional client base. Preferred by corporates and SACCOs seeking capital safety.
9. ArvoCap Money Market Fund (ArvoCap Asset Managers)
ArvoCap MMF offers about 10.7% p.a., maintaining strong performance since its launch in 2024.
Provider: ArvoCap Asset Managers.
Minimum Investment: KES 3,000 (top-ups from KES 1,000).
Notable Features: Mobile app integration, quick withdrawals (within 48 hours), and investor education focus. Its performance, transparency, and tech-driven approach make it a favorite among retail investors.
10. Orient Kasha Money Market Fund (Orient Asset Managers)
Closing the list, Orient Kasha MMF offers around 10.6% annualized return as of October 2025.
Provider: Orient Asset Managers Ltd (part of I&M Group).
Minimum Investment: KES 5,000.
Notable Features: Monthly interest crediting, 72-hour withdrawal processing, no entry/exit fees, and strong institutional backing. A stable choice for conservative investors who prefer established banking affiliations.
How to Choose the Right Money Market Fund
Even within the top 10, not all MMFs are equal. Your best choice depends on your goals, liquidity needs, and comfort level:
- Investment goal:
If you’re building an emergency fund or saving short-term, prioritize liquidity and low minimums (e.g., Ndovu or Etica). For large cash holdings, Nabo or GenAfrica offer top-tier security. - Minimum investment:
New investors can start small with as little as KES 100 (Etica) or KES 500 (Ndovu). High-net-worth investors may opt for Nabo (KES 100,000 minimum) or GenAfrica (KES 500,000 minimum). - Returns:
Compare both current yields and consistency. Cytonn, Ndovu, and GulfCap often maintain rates above 12% throughout the year. However, focus on long-term performance trends, not just short-term spikes. - Risk tolerance:
While MMFs are low-risk, those chasing the highest returns might hold slightly more corporate paper. Conservative investors can choose funds backed primarily by government securities like GenAfrica or Orient Kasha. - Accessibility:
Fintech-led funds (Ndovu, Etica, ArvoCap) offer mobile sign-ups and instant deposits/withdrawals, while traditional ones (Nabo, GenAfrica) cater more to institutional processes. - Diversification:
You can split your money across multiple funds – one offering high yield, another offering trusted stability – to balance returns and safety.
Final Thoughts
Money market funds remain one of the smartest and safest ways to grow savings in Kenya. Even with a mild dip in national interest rates in 2025, top MMFs continue to deliver inflation-beating returns between 10–13%, far outpacing ordinary savings accounts.
Whether you’re a beginner using your phone to invest KES 100 or a business parking millions temporarily, there’s a suitable fund for you. Fintech-driven managers like Ndovu and Etica make investing effortless, while established names like Nabo and GenAfrica offer legacy trust and proven consistency.
The bottom line: Start early, invest regularly, and monitor your returns. Money market funds reward patience and discipline — and as Kenya’s financial markets mature, they continue to provide the best bridge between safety and high yield for all investors.
FAQs about Money Market Funds
1) What exactly is a money market fund (MMF) in Kenya?
An MMF is a low-risk unit trust that invests in short-term instruments like Treasury bills, high-quality bank deposits, and commercial paper. It aims to preserve capital while paying a competitive yield.
2) How are MMF returns quoted?
Kenyan MMFs typically quote annualized (per-annum) yields based on recent daily income. If that pace continued for a year, that’s the rate you’d earn—net of fund fees but before withholding tax.
3) What tax applies to MMF earnings?
Interest from MMFs is subject to 15% withholding tax in Kenya. Managers usually deduct it at source; you receive the net distribution or it is reinvested, depending on your preference.
4) Are MMFs safe? Can I lose money?
They are considered low risk but not risk-free. Managers invest in short-term, high-quality instruments and are regulated. Capital losses are rare but theoretically possible.
5) How quickly can I access my cash?
Most MMFs process redemptions within T+1 to T+3 working days. A few app-first funds may process faster during business hours. Always check cut-off times and any minimum holding periods.
6) What fees should I expect?
A typical management fee is ~2% p.a., already reflected in the quoted yield. Good funds avoid entry/exit charges; confirm on each fund’s factsheet.
7) What’s the minimum investment?
This varies widely—from KES 100–1,000 for retail-friendly funds to KES 100,000+ for institutional-leaning funds. Pick a fund that matches your budget and savings plan.
8) Do MMFs compound?
Yes—most accrue interest daily and reinvest monthly by default, compounding your returns. You can often opt to receive monthly payouts instead.
9) MMF vs. bank savings account—what’s the difference?
MMFs usually pay higher yields and still offer liquidity. Bank accounts add convenience for payments but typically pay less interest.
10) Can I switch between funds?
Yes. You can redeem from one and invest in another. Compare yields, minimums, service quality, and withdrawal timelines before switching.
