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Weekly Money Market Fund (MMF) Update: 16th May 2025
Overview
For the week ending 16th May 2025, Money Market Funds in Kenya exhibited relatively stable returns, maintaining their position as preferred short-term investment vehicles. The average yield for the top 10 MMFs came in at 13.0%, showing a slight dip from the 13.1% recorded the previous week. This marginal change signals a market that is settling into a stable rhythm despite fluctuating liquidity levels and minor interest rate shifts in government securities.
Top 10 MMF Performance
| # | Money Market Fund | Effective Annual Rate (EAR) |
|---|---|---|
| 1 | Gulfcap Money Market Fund | 13.9% |
| 2 | Cytonn Money Market Fund | 13.7% |
| 3 | Kuza Money Market Fund | 13.4% |
| 4 | Ndovu Money Market Fund | 13.1% |
| 5 | GenAfrica Money Market Fund | 13.1% |
| 6 | Arvocap Money Market Fund | 13.1% |
| 7 | Etica Money Market Fund | 13.0% |
| 8 | Lofty-Corban Money Market Fund | 12.8% |
| 9 | Enwealth Money Market Fund | 12.1% |
| 10 | Britam Money Market Fund | 12.1% |
Treasury Bill Comparison
During the same week, the yields on Treasury bills stood at:
- 91-day T-bill: 8.37%
- 182-day T-bill: 8.58%
- 364-day T-bill: 10.00%
Money Market Funds continue to outperform short-term government securities, especially for retail investors looking for liquidity, diversification, and competitive after-tax returns.
Bottom 5 Performing MMFs
The lower end of the performance spectrum remains consistent, with minimal yield changes week-on-week:
| # | Money Market Fund | Effective Annual Rate (EAR) |
| 1 | Equity Money Market Fund | 5.0% |
| 2 | Ziidi Money Market Fund | 7.3% |
| 3 | Stanbic Money Market Fund | 7.5% |
| 4 | AA Kenya Money Market Fund | 8.2% |
| 5 | Mayfair Money Market Fund | 9.2% |
The persistently low performance of these funds signals either a conservative allocation strategy or higher internal cost structures. Investors should closely assess these factors in relation to their own risk appetite and investment goals.
YTD Top Performing MMFs
When we look at the year-to-date (YTD) average effective annual return, the following MMFs stand out:
| # | Money Market Fund | YTD Effective Annual Rate |
| 1 | Gulfcap Money Market Fund | 15.7% |
| 2 | Cytonn Money Market Fund | 15.5% |
| 3 | Etica Money Market Fund | 14.4% |
| 4 | Kuza Money Market Fund | 14.4% |
| 5 | Lofty-Corban Money Market Fund | 14.4% |
| 6 | Ndovu Money Market Fund | 14.3% |
| 7 | Orient Kasha Money Market Fund | 13.4% |
| 8 | Arvocap Money Market Fund | 13.4% |
| 9 | Mali Money Market Fund | 12.8% |
| 10 | GenAfrica Money Market Fund | 12.7% |
Key Insights
- Market Stability: Despite minor yield variations, the top-performing MMFs have consistently outperformed Treasury bills. This trend reflects effective asset allocation strategies among leading fund managers.
- Investor Confidence: The consistent dominance of funds like Gulfcap, Cytonn, and Kuza suggests growing investor confidence in non-bank affiliated fund managers.
- Performance Disparity: The gap between top-performing and lowest-performing funds remains wide, emphasizing the need for investor due diligence.
- T-Bill Yield Trajectory: As yields on T-bills continue a slow downward trend, MMFs remain an attractive alternative for investors seeking higher net returns with relatively low risk.
Conclusion
Money Market Funds in Kenya continue to deliver steady returns for investors, particularly in a climate of modest interest rate declines and stable liquidity conditions. However, not all MMFs are created equal. Investors are encouraged to not only consider yield but also assess asset allocation strategies, fund manager reputation, and fees before making investment decisions.
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