Looking for the best money market funds in Kenya for 2025? Compare returns, safety and features to make smart investment decisions.
Are you looking for a safe and reliable way to grow your money in Kenya this year? Money market funds might be the right choice for you. These funds are low-risk investments that offer better returns than traditional savings accounts. In this article, we will explain what money market funds are, why they are a good choice, and give you a detailed list of the top 15 money market funds in Kenya for 2025. We will also compare their interest rates, features, fees, and overall performance to help you make the best investment decision.
What Are Money Market Funds and How Do They Work?
Simple Explanation of Money Market Funds
Money market funds are special types of investment funds where people can put their money together to invest in short-term financial products. These products include things like treasury bills, fixed deposits, and commercial papers. The goal of a money market fund is to earn interest in these investments while keeping your money safe. These funds are managed by professional fund managers who choose the best options to generate steady returns.
Why Money Market Funds Are Popular in Kenya
Best Savings Accounts for Children in Kenya 2025Many Kenyans like money market funds because they are easy to join, flexible, and offer higher returns compared to regular savings accounts. You don’t need a lot of money to get started. Most funds allow you to invest as little as Ksh 100 to Ksh 1,000. The funds also pay interest daily or monthly, depending on the provider. This makes them ideal for anyone who wants to grow their money without taking big risks.
Liquidity and Access to Your Money
Another big benefit of money market funds is that your money is not locked. You can access it when you need it, usually within 1 to 3 working days. This makes them very convenient for emergencies or short-term saving goals like paying school fees, rent, or running a small business.
Why Choosing the Right Money Market Fund Matters?
Aligning the Fund with Your Goals
Before you invest in a money market fund, it’s important to know what you want to achieve. Are you saving for a short-term goal like a holiday, or are you building an emergency fund? Different funds have different features and returns, so choosing the right one can help you reach your goals faster and more safely.
Understanding Your Risk and Return Needs
Even though money market funds are considered low risk, some carry slightly more risk than others depending on where they invest. For example, some funds invest more in government securities, while others may include corporate papers which might carry a bit more risk. Understanding this will help you pick a fund that matches your comfort level with risk.
Getting the Most Out of Your Investment
To make the most of your investment, you should look at more than just the interest rate. Check the fund’s track record, how consistent their returns have been, the fees they charge, and how easy it is to deposit or withdraw your money. All these factors affect how much you will earn in the end.
Detailed Description of the Top 15 Money Market Funds in Kenya (2025)
Here is a deeper look into the top-performing money market funds in Kenya in 2025. These funds are ranked based on returns, reliability, customer satisfaction, and ease of access:
1. CIC Money Market Fund
CIC Money Market Fund is one of the most popular and trusted money market funds in Kenya. It is managed by CIC Asset Management, which is part of the larger CIC Insurance Group. This fund is known for its high returns and easy access, making it a favorite for both beginners and experienced investors. The minimum investment required is just KSh 500, which makes it affordable to many people. It offers returns of around 11% per year, which are among the highest in the market. Investors can expect daily interest calculations and monthly payouts. The fund also allows quick withdrawals within 2–3 working days, making it a good option for short-term savings or emergency funds.
2. NCBA Money Market Fund
The NCBA Money Market Fund is managed by NCBA Investment Bank, part of the NCBA Group. It is a stable and secure fund that is backed by a reputable bank. The minimum investment is KSh 5,000, which is slightly higher than other funds, but it offers strong performance and reliable returns. The fund pays interest monthly, and the average return is about 10.5% per year. It is a good choice for people looking for a balance between safety and steady growth. It also has a user-friendly app and online access, allowing investors to track their investments easily.
3. Sanlam Money Market Fund
Sanlam Kenya is a well-known name in the financial sector, and their money market fund is known for being consistent and trustworthy. The fund is managed by Sanlam Investments East Africa. You can start investing with as little as KSh 2,500, and you will get an average return of about 10.3% per year. Sanlam is praised for its transparency, customer support, and daily updates to investors via email or SMS. Withdrawals are processed within 2 to 3 days, and interest is calculated daily. This fund is ideal for people who want to grow their savings with low risk while receiving regular income.
4. ICEA Lion Money Market Fund
ICEA Lion is another well-respected financial services company in Kenya. Their money market fund is well known for its excellent customer service and detailed updates to investors. With a minimum investment of only KSh 500, it is accessible to most Kenyans. The fund has shown stable returns of about 10.7% per year, and interest is calculated daily and paid out monthly. Investors like this fund because it offers a great balance between high returns, low risk, and convenient access. ICEA Lion also provides a helpful mobile app and website for easy fund tracking and management.
5. Madison Money Market Fund
The Madison Money Market Fund is managed by Madison Asset Management, a part of Madison Group. This fund focuses on providing competitive returns through smart investment in short-term securities like treasury bills and fixed deposits. It requires a minimum investment of KSh 5,000. The average return is about 10.2% annually, and investors benefit from monthly interest payments. Madison is considered a reliable fund with a good reputation. It suits investors who want a stable income with minimal risk over the medium to long term.
6. Zimele Money Market Fund
Zimele is one of the most affordable and beginner-friendly funds in Kenya. It allows investors to start with as little as KSh 100, making it perfect for students, low-income earners, and new investors. Despite the low entry point, Zimele offers decent returns of about 9.8% per year. It is managed conservatively to keep your money safe while still growing. Zimele also offers a convenient mobile platform where you can deposit and withdraw funds easily. This fund is great for building a savings habit and growing small amounts over time.
7. Old Mutual Money Market Fund
Old Mutual is a trusted brand with decades of experience in managing investments. Their money market fund is well managed and offers steady returns of about 10% per year. You can start investing with KSh 1,000, and the fund focuses on capital preservation and consistent income. Investors receive monthly interest, and the fund has a strong reputation for financial stability. It is ideal for people who want a safe place to keep their money while earning better returns than a regular savings account.
8. Co-op Money Market Fund
This fund is provided by Co-op Trust Investment Services, which is part of Co-operative Bank. It requires a minimum investment of KSh 2,000 and is especially convenient for Co-op Bank customers. It offers returns of around 9.7% per year, with interest calculated daily and paid out monthly. Co-op Money Market Fund is known for being easy to access through mobile banking and offers good customer service. It’s a solid option for anyone looking for a reliable, bank-backed investment.
9. GenAfrica Money Market Fund
GenAfrica is a specialized investment management firm that targets both individuals and institutions. Their money market fund requires a minimum investment of Ksh 10,000, making it more suitable for serious or high-net-worth investors. The fund offers steady returns of about 9.5% annually and is managed with a focus on risk control and long-term growth. It is ideal for people who want a professionally managed fund with structured reporting and performance updates.
10. Britam Money Market Fund
Britam Asset Managers oversee the Britam Money Market Fund, which is a good option for everyday investors. You can start with Ksh 1,000 and enjoy an average return of about 9.6% per year. Britam offers an easy-to-use digital platform, making it simple to invest, monitor returns, and make withdrawals. The fund is also well-diversified and focuses on investing in short-term government and corporate securities. It’s a solid option for investors looking for consistent performance and ease of access.
11. Apollo Money Market Fund
Apollo Asset Management runs this fund with a focus on offering value through low fees and reliable returns. You can start investing with KSh 1,000, and the fund pays interest monthly. It provides returns of around 9.4% annually. Apollo aims to protect your capital while giving you regular income. The fund is a good fit for individuals and small businesses that want to grow idle cash with minimal risk and easy access.
12. Cytonn Money Market Fund
Cytonn’s Money Market Fund is known for offering some of the highest returns in the market, often up to 11% per year. The minimum investment is Ksh 1,000. However, investors should be cautious, as the fund has faced challenges in the past related to liquidity and withdrawal delays. That said, when things run smoothly, Cytonn delivers strong interest rates and pays interest daily. It’s best for people looking for high short-term returns and who don’t need immediate access to their funds.
13. Absa Money Market Fund
Absa Bank manages this fund, and it stands out for its strong brand and financial expertise. You’ll need a minimum of KSh 5,000 to join. The average annual return is about 9.3%, and the fund invests mostly in safe government and corporate securities. It is great for investors who value safety and professionalism. With a reliable customer support team and access through Absa channels, this fund is a solid choice for those looking for long-term financial security.
14. Equity Money Market Fund
Offered by Equity Group, this fund is designed to be easily accessible through Equity Bank’s mobile platforms. You can start investing with as little as KSh 1,000. The fund gives returns of about 9.5% per year, and it’s ideal for people who already use Equity Bank services. The fund is professionally managed and pays interest monthly. It is a good option for those who want a simple and safe investment connected to their everyday banking.
15. Stanlib Money Market Fund
Stanlib is an international investment company with operations in Kenya. Their money market fund is known for professionalism, transparency, and a history of reliable performance. The minimum investment is Ksh 5,000, and the average return is around 9.2% per year. The fund focuses on preserving capital and generating stable income. It’s a great option for conservative investors who prefer safety and peace of mind over chasing high returns.
Analyzing Returns: What to Expect from the Top Money Market Funds in 2025
What Are Money Market Fund Returns?
Money market funds earn money by investing in safe, short-term assets like treasury bills, bank deposits, and commercial papers. These earnings are given to investors as interest, usually paid monthly. The return is often shown as a percentage called the annual yield.
Comparing Fund Returns in 2025
In 2025, most money market funds in Kenya are offering returns between 9% and 11% per year. Funds like CIC, Cytonn, and ICEA Lion are leading with returns close to or above 11%, making them ideal for people looking for higher growth. Others like Zimele and Apollo offer slightly lower returns but are more conservative and safer.
Importance of Daily Interest and Monthly Payouts
Many funds calculate interest daily and pay it out monthly. This is great for investors who want to see their savings grow regularly. It also makes it easier to track how much you are earning. Some funds, like Cytonn, even show daily interest updates, though you must be careful due to past delays in withdrawals.
Understanding Fees and Charges: What You Should Know Before You Invest
Why Fund Fees Matter
When you invest in a money market fund, the fund manager charges a small fee for managing your money. These are called management fees or expense ratios. Though the fee may seem small, it affects your final return.
Common Charges in Money Market Funds
Most funds in Kenya charge an annual fee of around 1% to 2%. This fee is already deducted before you receive your interest, so you don’t need to pay extra. Some funds may also have withdrawal fees if you take out money before a certain period. Always read the fund documents to check for any hidden costs.
Finding Low-Fee Options
Zimele and ICEA Lion are examples of funds with very low fees, which helps you earn more in the long run. Choosing a fund with lower fees and steady returns can help you maximize your investment gains over time.
How Kenya’s Economy Affects Money Market Fund Performance
Economic Trends in 2025
Kenya’s economy in 2025 is expected to grow steadily, with lower inflation compared to previous years. This is good news for investors because a stable economy supports better interest rates and returns in money market funds.
Impact of Inflation on Your Returns
If inflation is high, the value of your money can go down, even if your investment is growing. Fortunately, most top funds in Kenya are currently offering returns higher than the inflation rate, which helps protect your money’s value.
Interest Rate Movements and Fund Yields
Money market funds earn more when interest rates go up. In 2025, interest rates in Kenya have remained attractive, which is why most funds are offering good yields. However, it’s important to stay updated because changes in interest rates directly affect how much your fund can earn.
Conclusion: Make Smart Investment Choices with the Right Money Market Fund
Why Money Market Funds Are a Smart Option
Money market funds are a great way to grow your savings while keeping your money safe. They offer higher interest than regular savings accounts, they are easy to access, and are low-risk.
Picking the Best Fund for You
To choose the right fund, look at the returns, fees, minimum investment, and how quickly you can withdraw your money. Also, read reviews from other investors and check the fund’s performance over time.
Start Small, Grow Big
You don’t need a lot of money to begin. Some funds let you start with as little as KSh 100. The most important thing is to start investing, stay consistent, and watch your money grow over time.