Articles
Top 10 Money Market Funds in Kenya – 14th February 2025
The Kenyan Money Market Funds (MMFs) continue to offer competitive returns, with little change in rankings this week. However, some key insights emerge, highlighting trends and interesting observations in the MMF landscape.
🔥 Top 10 MMF Rankings (14th February 2025)
| Rank | Fund Manager | Effective Annual Rate (EAR) |
|---|---|---|
| 1️⃣ | Cytonn Money Market Fund | 16.30% |
| 2️⃣ | Gulfcap Money Market Fund | 16.30% |
| 3️⃣ | Ndovu Money Market Fund | 15.50% |
| 4️⃣ | Mali Money Market Fund | 15.20% |
| 5️⃣ | Lofty-Corban Money Market Fund | 15.20% |
| 6️⃣ | Kuza Money Market Fund | 14.90% |
| 7️⃣ | Etica Money Market Fund | 14.80% |
| 8️⃣ | Genghis Money Market Fund | 13.80% |
| 9️⃣ | Orient Kasha Money Market Fund | 13.50% |
| 🔟 | Dry Associates Money Market Fund | 13.40% |
📌 Compared to the previous update (31st January 2025), returns remained largely stable, with only minor shifts in rankings among the top 10 funds.
📢 Key Observations & Market Insights
✅ New Entrants & Ranking Movements
- Mali Money Market Fund climbed to 4th place, tying with Lofty-Corban at 15.20%, up from 7th place in previous rankings.
- Etica MMF dropped from 4th place to 7th as its yield declined from 15.50% to 14.80%.
- Genghis MMF re-entered the top 10, securing 8th place with 13.80%, replacing Madison MMF, which dropped out.
✅ Low-Performing Funds Raise Questions
- The much-hyped Ziidi MMF, launched by Safaricom in partnership with Standard Investment Bank and ALA Capital, continues to deliver relatively lower returns, ranking 29th out of 31 MMFs at 9.7%, far below the top-ranked funds offering 16.3%.
- The lowest-performing MMF—Equity Money Market Fund (position 31)—had an EAR of 6.8%, which is 9.5% lower than the best-performing funds.
- Interestingly, the second-lowest MMF (Stanbic MMF at 30th) had a significantly higher return of 9.1%, raising questions about performance disparities.
✅ Age vs. Performance: Do Older MMFs Perform Better?
- Only 3 of the top 10 MMFs have been in the market for more than 3 years (Cytonn MMF, Genghis MMF, and Dry Associates MMF).
- The rest of the top performers are newer funds, most less than 3 years old, suggesting increased competition and aggressive investment strategies among new entrants.
💡 What This Means for Investors
🔹 Returns vary widely across MMFs—choosing a fund should go beyond just yield; factors like liquidity, fund manager reputation, and stability matter.
🔹 Newer funds are performing well—suggesting that market competition is pushing newer funds to offer competitive returns to attract investors.
🔹 Ziidi MMF’s lower yield reinforces that mobile-based convenience doesn’t always equate to higher returns.
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