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Kenya Fixed Income Fund Performance Update – 21st February 2025
Fixed Income Funds are a stable and low-risk investment option, offering predictable returns by investing in government bonds, corporate bonds, and other fixed-income securities. These funds are ideal for investors looking for steady income and capital preservation, especially in times of market uncertainty.
Top 10 Fixed Income Funds This Week
The latest ranking shows minimal changes in fund performance, with Gulfcap Fixed Income Fund maintaining its top position at 15.55%. Meanwhile, Kuza Fixed Income Fund moved up to 2nd place, recording a 14.65% yield.
| Rank | Fund Manager | Effective Annual Rate (EAR) |
|---|---|---|
| 1 | Gulfcap Fixed Income Fund | 15.55% |
| 2 | Kuza Fixed Income Fund | 14.65% |
| 3 | Etica Fixed Income Fund | 14.61% |
| 4 | Zimele Fixed Income Fund | 13.93% |
| 5 | Madison Fixed Income Fund | 13.65% |
| 6 | Britam Bond Plus Fund | 13.47% |
| 7 | Britam 12 Months Fixed Income Fund | 13.32% |
| 8 | Nabo Africa Fixed Income Fund | 13.20% |
| 9 | Britam 6 Months Fixed Income Fund | 13.12% |
| 10 | Britam 3 Months Fixed Income Fund | 13.10% |
Key Insights & Comparisons
✅ Average EAR of Top 10 Fixed Income Funds: 13.86% (⬇️ from 14.21% last week)
✅ Highest Performing Fund (Gulfcap Fixed Income Fund): 15.55% (unchanged)
✅ 364-Day T-Bill Yield: 10.5% 📉 (⬇️ from 10.6%)
✅ 91-Day T-Bill Yield: 8.9% 📉 (unchanged)
Market Observations
📉 Slight Drop in Average Fixed Income Fund Yields: The top 10 average yield declined from 14.21% last week to 13.86%, signaling a gradual downward trend in returns.
📌 Kuza Fixed Income Fund Gains Ground: The fund recorded a 14.65% return, moving up to 2nd place in the rankings.
📌 Britam’s Strong Market Presence: Three Britam Fixed Income Funds secured positions in the top 10, reinforcing Britam’s competitive standing in the sector.
Fixed Income Funds vs. Money Market Funds
Interestingly, the average return of the top 10 Fixed Income Funds (13.86%) is now very close to the average of the top 10 Money Market Funds (14.73%) as of 21st February 2025. Traditionally, MMFs tend to offer higher short-term liquidity, whereas Fixed Income Funds provide more stability over longer investment horizons.
What This Means for Investors
Fixed Income Funds remain a solid investment option, particularly for investors looking for lower volatility and predictable income streams. However, the decline in yields suggests that investors should continue monitoring market trends before making allocation decisions.
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