Because of its higher interest rates, Nabo Money Market Fund is one of Kenya’s best-known money market fund accounts. As of October 2024, it is offering investors a percentage rate of return of 16.01% annual percentage yield (APY) on all investments in their individual MMF accounts.
Generally, between May and September this year, before the Monetary Policy Committee of the Central Bank of Kenya lowered the Central Bank Rate (CBR), or the key rate, from 13 per cent to 12.75% in August, money market funds in Kenya had high APYs, with Nabo Capital posting an above-market average net return of 17.5% that month. In the previous months—May, June, and July—Nabo’s annualised fund yield was 16.5%, 16.6%, and 16.66%, respectively.
The reason for the high interest rates? Well, Nabo Capital, the fund manager of Nabo Money Market Fund, says it is simply in line with their objective of always seeking to maximise current income by investing primarily in a diversified portfolio of short-term debt securities and instruments whilst aiming to preserve capital and maintain a high degree of liquidity.
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As the fund manager, Nabo Capital, a 3rd Generation Investment firm that has been in existence for over 50 years, is assisted by KCB Bank as the fund’s trustee, Stanbic Bank as the custodian and Grant Thornton International as the auditor to continuously create a balanced but profitable investment portfolio to ensure it invests the investors’ funds according to the investment objective.
Today, the sum of all the assets under the fund’s management in the Nabo Money Market Fund as a unit trust is Ksh3.69 billion, plus Ksh296.7 million in the Nabo USD MMF.
How to join the Nabo Money Market Fund
Providing investors with security of capital and daily liquidity because of investing in money market instruments that have a minimal mark to market volatility due to their short maturities and high credit quality, opening a Nabo Money Market Fund account is the easiest way to gain access to the money markets.
To begin registration, start by choosing ‘INVEST NOW’ from the top menu on the homepage of their website, then fill in the required details to proceed to the next step of investing.
Alternatively, you can give your savings an opportunity to grow after filling out this application form (available here), scanning and sending it via email to clientservice@nabocapital.com or physically dropping it off at Nabo Capital offices on the 5th Floor of International House, Mama Ngina Street, Nairobi.
To open the money market account, you must be 18 or older and have the required Ksh100,000 minimum initial investment amount.
What about non Kenyan people?