If you’re looking to grow your savings or secure short-term financial goals, money market funds are a great option.
They offer competitive returns, stability, and are an excellent alternative to traditional savings accounts. Here’s a roundup of the top five money market funds in Kenya, ranked by their market share and reputation.
What is MMF
MMF? That's the Money Market Fund. Think of it as a parking spot for your cash—safe, short-term, and earning a little extra. MMFs put your money into stuff like treasury bills and commercial papers. Sounds fancy, but really, it's just low-risk investments.
Why MMFs?
Liquidity: Need your cash? Grab it. No big penalties.
Safety: Low risk, high-rated securities. Your money’s not going bungee jumping.
Returns: Not crazy high, but steady. Better than your typical savings account.
Easy Entry: Got a little money? That’s enough to get started.
Perfect for anyone—individuals, businesses, whoever. It's a chill way to let your money grow while staying close at hand.
1. CIC Money Market Fund
Leading the pack with an impressive 27.5% market share, CIC Money Market Fund is the top choice for investors in Kenya.
Nearly 28 out of 100 people trust CIC for its reliability and attractive returns. With a minimum investment of 5,000 KSh, it’s a stable and trusted option for both new and seasoned investors.
CIC Money Market Fund Specifics
Security for your capital.
Your money earns interest monthly, i.e.. our current annual
Rate is 13.5%p. a spread monthly.
There are no management fees for the investment.
Withdrawals can be made anytime with a notice of 2-4 working days.
Minimum for investment is 1,000kshs for individuals, Chama’s, Groups, Companies, and Sacco
How to calculate Interest Using CIC Money Market Fund
To calculate how much you'll earn monthly with an annual interest rate of 13.5%, we need to divide the annual rate by 12 to find the monthly rate and then multiply it by your investment. Here's how it works:
Formula:
Monthly Interest = (Annual Rate ÷ 12) × Investment (Annual Rate ÷ 12)×Investment
Calculation:
Annual Rate = 13.5% or 0.135
Monthly Rate = 0.13512=0.01125\frac{0.135}{12} = 0.01125120.135=0.01125 (or 1.125%)
Investment = 2,000,000 KSh
Monthly Interest = 0.01125 × 2 , 000 , 000 = 22 , 500 KSh 0.01125×2,000,000=22,500KSh
Total Monthly Earnings:
You will earn 22,500 KSh per month in interest from your 2,000,000 KSh investment in CIC Money Market Fund at a 13.5% annual rate.
2. NCBA Money Market Fund
At 13.9% market share, NCBA is a strong contender, trusted by 14 out of every 100 investors in Kenya. As a result of the merger between NIC Bank and CBA, NCBA boasts a solid reputation.
The best part? You can start investing with any amount, making it accessible to everyone.
3. Britam Money Market Fund
Britam holds 13.3% of the market share and is a household name in Kenya. Known for its diverse range of services beyond money market funds, Britam offers a reliable option for investors.
With its headquarters in Upper Hill, Nairobi, Britam combines trust and convenience.
4. Sanlam Money Market Fund
With a market share of 13.2%, Sanlam is another popular choice among investors. You can start with as little as 2,500 KSh, making it an affordable entry point. Backed by a reputable brand, Sanlam offers stability and a solid track record.
5. ICEA Lion Money Market Fund
ICEA Lion closes the top five with a 6.9% market share. Reliable and well-known, this fund has been a staple in the market for years.
With easily accessible offices in Westlands and an intuitive online platform, ICEA Lion makes investing simple and convenient.
Quick Tips for Choosing a Money Market Fund
Initial Investment: Consider the minimum amount required. CIC needs 5,000 KSh, while others like Sanlam require only 2,500 KSh.
Withdrawal Charges: Check for any hidden costs associated with withdrawals.
Management Fees: Know how much of your returns go to fund managers.
Trustees and Custodians: Ensure they are reputable for the safety of your investment.
Interest Rates: While important, don’t rely solely on rates—consider stability and service quality too.