Research

Weekly Money Market Fund Performance Update – 23rd May 2025

Kenya’s top-performing money market funds remained stable this week, reflecting a consistent environment for short-term savers and liquidity managers. Despite broader macroeconomic headwinds, MMFs continued to offer attractive yields above Treasury Bills (T-Bills), supporting their appeal as secure, flexible investment vehicles.

Top 10 Money Market Funds by Effective Annual Rate (EAR)

RankMoney Market FundEAR (%)
1Gulfcap Money Market Fund13.9%
2Cytonn Money Market Fund13.6%
3Kuza Money Market Fund13.3%
4Ndovu Money Market Fund13.1%
5Arvocap Money Market Fund13.1%
6GenAfrica Money Market Fund13.1%
7Etica Money Market Fund12.9%
8Lofty-Corban Money Market Fund12.8%
9Enwealth Money Market Fund12.1%
10Old Mutual Money Market Fund12.0%

Average EAR for the top 10 MMFs: 13.0%
(unchanged from the previous week)

T-Bills vs. MMFs: Relative Performance

During the week, Treasury Bill yields stood at:

  • 91-day: 8.3%
  • 182-day: 8.57%
  • 364-day: 10.0%

➡️ Insight: The top MMFs continued to outperform T-Bills across all tenors, underscoring their superior return potential for investors seeking higher liquidity with capital preservation.

Week-on-Week Movements: Stability Amidst Softening

Compared to the previous week, MMF performance remained largely unchanged:

  • Top 10 average EAR: unchanged at 13.0%
  • Slight decrease in Cytonn (13.7% → 13.6%)
  • Britam MMF exited the top 10, replaced by Old Mutual MMF

➡️ Key Message: The consistency in yields indicates a stable underlying fixed income market and disciplined asset allocation strategies among the top-tier MMFs.

Bottom 10 MMFs: Persistently Low Returns

MMFEAR (%)
Equity Money Market Fund5.4%
Ziidi Money Market Fund7.2%
Stanbic Money Market Fund7.5%
AA Kenya Money Market Fund7.8%
Mayfair Money Market Fund9.2%

The gap between the best and worst performers remains wide — over 8.5 percentage points — suggesting that investors must assess MMF strategies, cost structures, and risk profiles beyond headline returns.

YTD Leaders: Who’s Ahead in 2025?

RankMMFYTD EAR (%)
1Gulfcap MMF15.6%
2Cytonn MMF15.4%
3Etica MMF14.4%
4Kuza MMF14.4%
5Lofty-Corban MMF14.3%
6Ndovu MMF14.2%

These funds continue to provide reliable alpha for fixed-income investors looking for liquidity and stability in a moderately easing rate environment.

Final Thoughts

Despite declining T-Bill yields, Kenya’s top MMFs are maintaining strong returns and outperforming key benchmarks. Investors and treasury managers seeking stability, liquidity, and relatively better risk-adjusted returns would be well-positioned with a diversified MMF strategy. That said, attention to fund composition, fee structures, and historical volatility remains essential.

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