Articles
Money Market Funds (MMFs) Performance – 19th December 2025
Top 10 MMFs by Effective Annual Rate
| Rank | Money Market Fund | Effective Annual Rate |
|---|---|---|
| 1 | Nabo Africa Money Market Fund | 12.2% |
| 2 | Cytonn Money Market Fund | 11.9% |
| 3 | Arvocap Money Market Fund | 11.8% |
| 4 | Etica Money Market Fund | 11.5% |
| 5 | Lofty-Corban Money Market Fund | 11.1% |
| 6 | Ndovu Money Market Fund | 11.1% |
| 7 | Enwealth Money Market Fund | 11.1% |
| 8 | Gulfcap Money Market Fund | 10.8% |
| 9 | Kuza Money Market Fund | 10.7% |
| 10 | Jubilee Money Market Fund | 10.6% |
Average yield (Top 10 MMFs): 11.3%
📉 Comparison: MMFs vs Treasury Bills
| Instrument | Yield |
|---|---|
| Top 10 MMFs (Average) | 11.3% |
| 364-Day T-Bill | 9.23% |
| 182-Day T-Bill | 7.80% |
| 91-Day T-Bill | 7.77% |
Key Investment Insights
- MMFs continue to outperform government T-bills across all tenors, offering a yield premium of 2.1–3.5 percentage points over risk-free instruments during the same period.
- The strong MMF performance reflects:
- Elevated short-term interest rates earlier in the quarter
- Active fund positioning in higher-yielding money market instruments
- Efficient liquidity management by top-tier fund managers
- With T-bill yields trending lower and auction demand moderating, MMFs remain an attractive alternative for investors seeking higher short-term returns with daily liquidity.
- The 11.3% average MMF yield significantly enhances real returns, especially against the backdrop of moderating inflation.
Takeaway for Investors
For short-term investors prioritizing capital preservation, liquidity, and yield enhancement, top-performing MMFs continued to offer superior risk-adjusted returns relative to Treasury Bills in the week ending 19th December 2025.