As investors globally seek stable returns in volatile fiscal markets, money market funds (MMFs) in Kenya have emerged as a compelling option for many in the country, offering competitive yields and lower risk than most traditional investment avenues, such as stocks and bonds.
The MMFs, which are a type of mutual fund that pool money and then invest it in short-term, high-quality securities like treasury bills, bank deposits and corporate commercial paper, are particularly appealing because they offer liquidity and stability.
That is liquidity to mean the ease with which investors can access their money in an MMF account, and stability, referring to their low-risk nature, which helps preserve the value of the capital while providing steady income over the investment period.
In 2025, though, the returns from MMFs in Kenya have dropped, especially during the first part of the year. This happened after the Central Bank of Kenya (CBK) lowered the Central Bank Rate (CBR) to 10.00 per cent on April 8, 2025.
To compare, many MMFs gave returns as high as 18.22% in 2024, based on data from the Capital Markets Authority. But now, the highest-paying MMF—GulfCap Money Market Fund—offers a rate of 13.87% before tax. Etica, which led with a nominal rate of 18.36% last year, now gives a 13.01% yield before tax.
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But why the drop? Well, a lower CBK rate reduces the interest rates on government securities, such as treasury bills, which form a significant portion of MMF portfolios. Banks and financial institutions also offer lower returns on short-term savings and deposits, impacting MMFs further.
Still, here’s a look at the best-performing MMFs in Kenya this month;
10 best high-yield money market accounts for May 2025
Based on current data from the country’s financial sector, these are the top funds by nominal and real (after-tax) returns:
| No. | Money Market Fund | Rate before tax | Real interest rate |
| 1. | GulfCap MMF | 13.87% | 7.38% |
| 2. | Cytonn MMF | 13.74% | 7.27% |
| 3. | Kuza MMF | 13.45% | 7.03% |
| 4. | Orient Kasha MMF | 13.06% | 6.72% |
| 5. | Etica MMF | 13.01% | 6.67% |
| 6. | GenAfrica MMF | 12.95% | 6.63% |
| 7. | Lofty Corban MMF | 12.89% | 6.58% |
| 8. | Enwealth MMF | 12.27% | 6.07% |
| 9. | Britam | 12.17% | 5.99% |
| 10. | Old Mutual MMF | 12.14% | 5.96% |
Why invest in Money Market Funds?
MMFs offer a low-risk way to earn returns that beat inflation, with the benefit of daily or monthly liquidity. By pooling investments, these funds provide access to high-quality securities that individual investors might not otherwise afford. Returns depend on the real rate, which accounts for taxes and management fees, typically around 2%.
Risks and considerations
Although MMFs are among the safest investment options, they are not without risk. Economic changes, such as shifts in interest rates or inflation, can impact yields. The value of investments may vary, and investors could receive less than their initial investment.
Outlook
Analysts expect Kenya’s MMFs to remain competitive in 2025, though easing monetary policy may limit yields. If the CBK maintains or increases its benchmark rate, yields could rise, making MMFs more attractive. Investors should stay informed as market conditions change.
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