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Weekly Money Market Fund Performance Update – 30th May 2025
Market Overview
Money Market Funds (MMFs) in Kenya held steady during the week, with top-tier funds continuing to offer highly competitive returns against a backdrop of declining T-bill yields. The average effective annual rate (EAR) among the top 10 MMFs remained unchanged at 13.0%, signaling stability among well-performing funds despite easing returns in the government securities market.
Top 10 Performing MMFs – Week Ending 30th May 2025
| Rank | Money Market Fund | Effective Annual Rate (EAR) |
|---|---|---|
| 1 | Gulfcap MMF | 13.9% |
| 2 | Cytonn MMF | 13.6% |
| 3 | GenAfrica MMF | 13.3% |
| 4 | Kuza MMF | 13.1% |
| 5 | Ndovu MMF | 13.1% |
| 6 | Arvocap MMF | 13.0% |
| 7 | Etica MMF | 12.9% |
| 8 | Lofty-Corban MMF | 12.8% |
| 9 | Orient Kasha MMF | 12.7% |
| 10 | Enwealth MMF | 12.0% |
📌 Average of Top 10 MMFs: 13.0%
This week’s ranking reflects strong consistency among leading funds, with Gulfcap MMF maintaining its top position at 13.9%. Notably, GenAfrica moved up one spot into third place, while Old Mutual MMF exited the top 10, making way for Orient Kasha MMF.
Short-term government securities experienced a marginal decline in yields:
T-Bill Comparison – Week Ending 30th May 2025
- 91-day: ↓ 3.0 bps to 8.29%
- 182-day: ↓ 1.1 bps to 8.56%
- 364-day: ↔ Unchanged at 10.00%
🔍 Insight: With the top MMFs offering premium returns of up to 13.9%, they continue to outpace short-term government paper—making them a strong alternative for investors seeking liquidity and better returns with relatively low risk.
Week-on-Week Stability
Performance among the top 10 MMFs remained largely unchanged from the previous week, where the average EAR also stood at 13.0%. The top 5 positions were identical to the prior week, reinforcing the resilience and competitiveness of these funds in a dynamic market.
Underperforming MMFs – YTD Trends
While top MMFs deliver double-digit returns, some funds continue to lag significantly:
| Rank | Money Market Fund | YTD Effective Annual Rate |
|---|---|---|
| 1 | Equity MMF | 5.4% |
| 2 | Ziidi MMF | 7.2% |
| 3 | Stanbic MMF | 7.8% |
| 4 | AA Kenya MMF | 8.1% |
| 5 | Mayfair MMF | 9.2% |
| 6 | Mali MMF | 9.7% |
| 7 | ICEA MMF | 9.9% |
| 8 | Co-op MMF | 10.0% |
| 9 | CIC MMF | 10.1% |
| 10 | KCB MMF | 10.2% |
Equity MMF continues to trail the market at a low YTD yield of 5.4%—nearly a third of the returns offered by Gulfcap.
Spotlight: Ziidi MMF – High Hopes, Low Returns?
Launched in December 2024 by Standard Investment Bank in partnership with Safaricom PLC, Ziidi MMF generated much anticipation. Offering easy onboarding via M-PESA, it attracted over 450,000 users and KES 2.85 billion in assets under management.
However, performance has underwhelmed so far. With a YTD return of only 7.2%, Ziidi ranks among the bottom performers, raising concerns over whether mass adoption has outpaced investment strategy performance.
Final Thoughts
Money Market Funds remain a valuable tool for capital preservation, short-term liquidity, and yield enhancement. The disparity in performance across the market underlines the importance of active fund comparison, especially as investor-friendly platforms (like Ziidi) become more mainstream.
Investors should look beyond accessibility and branding, focusing instead on consistent performance, fund manager credibility, and risk-adjusted returns.
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