Research

Kenya Money Market Funds (MMFs) Weekly Performance Update – 28th February 2025

The Kenyan Money Market Fund (MMF) market remained stable this week, with Gulfcap MMF maintaining the top position at 16.3%, while some funds experienced slight ranking shifts.

💰 Top 10 Money Market Funds – 28th February 2025

RankMoney Market FundEffective Annual Rate (EAR)
1️⃣Gulfcap Money Market Fund16.3%
2️⃣Cytonn Money Market Fund16.1%
3️⃣Ndovu Money Market Fund15.5%
4️⃣Mali Money Market Fund15.2%
5️⃣Lofty-Corban Money Market Fund14.9%
6️⃣Etica Money Market Fund14.9%
7️⃣Kuza Money Market Fund14.9%
8️⃣Arvocap Money Market Fund13.8%
9️⃣Orient Kasha Money Market Fund13.4%
🔟Genghis Money Market Fund13.3%

➡️ Average yield of the top 10 MMFs: 14.8%, slightly higher than the previous week’s 14.7%.


🔎 Key Observations & Market Trends

📌 Gulfcap MMF retains the top spot at 16.3%, with no change in yield.
📌 Cytonn MMF follows closely at 16.1%, a slight drop from last week’s 16.2%.
📌 Lofty-Corban MMF climbs from 7th to 5th place, aligning with Etica and Kuza MMFs at 14.9%.
📌 Arvocap MMF rises from 10th to 8th place, while Genghis MMF moves to 10th place.

📉 General Trend: MMFs continue to provide higher returns than traditional savings options and T-bill yields, maintaining their appeal for short-term investors.


📈 MMFs vs Treasury Bill (T-Bill) Rates Comparison

For context, let’s compare the top MMF yields against Kenya’s latest Treasury Bill (T-Bill) rates as of 28th February 2025:

91-day T-Bill Yield: 8.9% (⬇️ 1.1 bps)
182-day T-Bill Yield: 9.2% (⬇️ 7.2 bps)
364-day T-Bill Yield: 10.5% (⬇️ 2.6 bps)
Top 10 MMFs Average Yield: 14.89%

💡 Insight: MMFs continue to outperform T-bills by a significant margin, making them a better option for liquidity-focused investors who seek higher returns with short-term accessibility.


🧐 Spotlight on Market Movements

🔸 Absa Money Market Fund, which some of our followers have inquired about, remains outside the top 10 with an effective yield of 11.0%, trailing significantly behind leading MMFs.
🔸 Ziidi Money Market Fund, which entered the market with high expectations, remains one of the lowest-yielding MMFs at 9.5%, raising concerns over its competitive positioning.
🔸 Despite being relatively newer, top-performing MMFs such as Gulfcap, Mali, and Ndovu continue to outperform more established funds.


📢 What This Means for Investors

✔️ MMFs continue to provide strong returns, far above T-bill rates and traditional savings accounts.
✔️ Investors should compare MMFs not only by yield but also by liquidity, risk management, and fund stability.
✔️ Newer MMFs are outperforming many well-established funds—highlighting the need for deeper due diligence before choosing where to invest.


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