Best Money Market Funds in Kenya 2026: Complete Guide to Yields, Fees, and Top Performers
Money Market Funds (MMFs) have become Kenya's go-to investment vehicle for good reason. In 2026, they continue offering returns that handily beat inflation and savings accounts, while keeping your money accessible within days. With the sector now managing over Ksh400 billion in assets, choosing the right fund requires understanding the landscape .
This comprehensive guide ranks the best Money Market Funds in Kenya, explains how they work, and helps you choose the right one for your financial goals.
What Are Money Market Funds and Why Invest in Them?
A Money Market Fund is a type of unit trust that pools money from many investors to purchase low-risk, short-term financial instruments . These include:
Treasury Bills: Short-term government debt
Commercial Paper: Short-term corporate debt
Fixed and Call Deposits: Bank deposits earning interest
Key Benefits
Best Money Market Funds in Kenya (June 2026 Rankings)
Based on June 2026 performance data, here are the top-performing MMFs ranked by gross yield :
| Rank | Fund | Gross Yield | Net Yield (after 15% tax) | Minimum Investment |
|---|---|---|---|---|
| 1 | Cytonn MMF | 11.43% | 9.72% | KES 1,000 |
| 2 | Nabo Africa MMF | 11.34% | 9.64% | KES 1,000,000 |
| 3 | Etica MMF | 11.10% | 9.44% | KES 100 |
| 4 | Arvocap MMF | 10.45% | 8.88% | KES 3,000 |
| 5 | Lofty-Corban MMF | 10.18% | 8.66% | KES 1,000 |
| 6 | Britam MMF | 9.73% | 8.27% | KES 1,000 |
| 7 | CIC MMF | 8.43% | 7.17% | KES 5,000 |
Important: Yields are annualised from published daily rates, move weekly, and are already net of management fees but before the 15% withholding tax .
Detailed Fund Reviews
1. Cytonn Money Market Fund – Best for Maximum Returns
Cytonn consistently delivers Kenya's highest MMF returns at 11.43% gross (9.72% net) .
Minimum Investment: KES 1,000
Management Fee: 1.5%
Withdrawal Time: T+1 to T+3
How to Invest: Cytonn app, website, or M-Pesa
Best for: Investors who prioritise maximum returns and are comfortable with a newer fund manager .
2. Etica Money Market Fund – Lowest Minimum Investment
Etica offers 11.10% gross yield with the lowest entry barrier in the market .
Minimum Investment: KES 100
Withdrawal Time: 1-3 business days
How to Invest: Mobile-first platform
Best for: First-time investors and those wanting to start with minimal capital.
3. Britam Money Market Fund – Established Brand with Solid Returns
Britam pairs a KES 1,000 entry with the balance sheet of one of East Africa's largest insurers, yielding approximately 9.7% gross (≈8.3% net) .
Minimum Investment: KES 1,000
Withdrawal Time: 1-3 business days
Ecosystem: Integrates with Britam insurance and pension products
Where Britam Wins: Scale and track record. For savers who value institutional stability, the yield discount is worth the peace of mind . Many savers split the difference—core float in a big-brand fund, surplus in higher-yield funds.
Best for: Conservative investors who prioritise brand trust and institutional backing.
4. CIC Money Market Fund – Largest Fund by Assets
CIC manages the largest MMF by assets in Kenya, backed by a major insurance company .
Minimum Investment: KES 5,000
Management Fee: 2%
Withdrawal Time: T+2
Best for: Conservative investors and those making larger deposits who prioritise stability over maximum yield.
5. Nabo Africa Money Market Fund – Strong Performer
Nabo consistently ranks among the top three performers with 11.34% gross yield .
Minimum Investment: KES 1,000,000
How to Invest: Nabo Capital platform
Best for: High-net-worth investors and institutional clients.
6. Zimele Money Market Fund (Old Mutual) – Oldest MMF
Zimele is Kenya's oldest MMF with a well-established track record .
Minimum Investment: KES 100
Management Fee: 2%
Withdrawal Time: T+2
How to Invest: USSD *202#, agents, or online
Best for: First-time investors and low-income savers wanting a trusted brand .
7. Jubilee Money Market Fund – Solid Returns with Insurance Backing
Jubilee offers an effective annual yield of 10.34% (3-month average to March 2026) .
Minimum Investment: KES 5,000 (top-ups from KES 1,000)
Withdrawal Time: Within 48 hours
Daily interest accrual with tax-exempt income within the fund
Best for: First-time investors, businesses managing cash flow, and conservative investors .
8. Britam Money Market Fund – The Established Choice
The Britam MMF offers a low KES 1,000 entry with the backing of a major insurer .
Current Gross Yield: ≈9.7% p.a. (≈8.3% net after 15% WHT)
Minimum Investment: KES 1,000
Top-ups: Any amount, anytime via M-Pesa
Withdrawal: Typically 1-3 business days
Britam Asset Managers runs one of the largest unit-trust books in Kenya. For savers who remember collapsed shadow-banking schemes, this history justifies the lower headline yield .
9. ArvoCap Money Market Fund – Consistent Top Performer
ArvoCap has emerged as a consistent top performer, with a 10.45% gross yield as of June 2026 .
Minimum Investment: KES 3,000
How to Invest: ArvoCap Asset Management platform
10. Lofty-Corban Money Market Fund – Over KES 4 Billion AUM
Lofty-Corban maintains a 10.18% gross yield with over KES 4 billion in assets under management .
Minimum Investment: KES 1,000
Management: Lofty-Corban Asset Management
Additional Notable Funds
| Fund | Gross Return | Min. Investment |
|---|---|---|
| KCB Money Market Fund | 9.47% | Varies |
| Equity Money Market Fund | 11.4% | Varies |
| Co-op Money Market Fund | 14.2% | Varies |
| Dry Associates MMF | 14.0% | Varies |
| GenAfrica MMF | 9.21% | Varies |
| SanlamAllianz MMF | 9.14% | Varies |
Why Newer Funds Out-Yield the Giants
CIC, Britam, Sanlam, ICEA, and Old Mutual manage the bulk of Kenya's unit-trust assets. Large funds prioritise liquidity and capital preservation, and their sheer size limits how aggressively they can chase rates .
Smaller, newer managers (Cytonn, Etica, Arvocap, Lofty-Corban) compete on headline yield to grow their books. Neither approach is wrong—they are different products:
MMFs vs Other Investment Options (2026)
| Investment Option | Gross Yield | After-Tax Yield | Liquidity |
|---|---|---|---|
| Top MMFs | 11-13% | ≈10.2-11.6% | 1-3 days |
| Average MMF | 9.14% | 7.77% | 1-3 days |
| 91-Day T-Bill | 7.7% | 6.6% | Maturity (91 days) |
| 182-Day T-Bill | 7.8% | 6.6% | Maturity (182 days) |
| 364-Day T-Bill | 9.2% | 7.8% | Maturity (364 days) |
| Inflation (Dec 2025) | 4.5% | — | — |
| Central Bank Rate | 9.00% | — | — |
Key Insight: MMFs not only compete with 364-Day T-Bills but also provide better liquidity and accessibility, making them ideal for emergency funds, business cash flow management, short-term savings goals, and parking funds between investments .
The 2026 Context: What's Happening in the Market?
The Rate-Cut Cycle
After a period of record-high interest rates that saw MMFs delivering double-digit returns, the tide has turned. The Central Bank of Kenya's persistent rate-cutting cycle brought the benchmark rate down to 9.0% by December 2025, affecting returns across the board .
In 2024, it was common to see net returns as high as 12% to 15%. By the close of 2025, the industry average settled closer to 7.8%–9.0% .
Why the Drop? MMFs primarily invest in short-term government paper (T-Bills). As the 91-day T-Bill rate plummeted from nearly 16% to under 8% by December 2025, fund managers have been forced to roll over maturing investments into much lower-yielding instruments .
Record Cash Holdings
Kenya's fund managers are now sitting on a record KSh 120.22 billion in cash—the fastest-growing asset category of the past five years .
Cash and demand deposits rose 35.9% between December 2025 and March 2026 alone
Up 66.4% over the past year
Five years ago, cash holdings were just KSh 5.04 billion
Notable concentration: Seven schemes (Sanlam, CIC, SIB, Britam, Old Mutual, Etica, and Ziidi) account for roughly KSh 92.7 billion of the industry's cash—about 77% of the total .
Ziidi Money Market Fund is the most concentrated, holding 41.5% of its entire book in cash, more than double Sanlam's 19.2% or CIC's 20.2% .
Sector Growth
Despite the cut in returns, the MMF sector reached an impressive Ksh400 billion in Assets Under Management (AUM). The market is becoming crowded, and in 2026 competition favours fund managers with lower management fees and innovative ways of accessing funds .
How to Choose the Right Money Market Fund
1. Compare After-Tax Yield
A fund quoting 11% gross effectively pays approximately 9.35% net after the 15% withholding tax . Always compare net returns—this gives you the true picture .
2. Check Fund Manager Reputation
Stick to CMA-approved and established firms. Fund managers are licensed by the Capital Markets Authority, and client money sits with an independent custodian bank under a trustee .
3. Look at Performance Consistency
Funds quote a 7-day or 30-day annualised yield that moves daily. A fund topping the table this month may not next month. Look at the 6-12 month average and the fund manager's consistency .
4. Consider Withdrawal Speed
Standard is 1–3 business days. Some funds pay small M-Pesa redemptions same-day. If this is your emergency fund, that speed is the whole point .
5. Check Minimum Investment
6. Split Large Balances
MMFs are CMA-regulated with independent custodians and trustees, but they are not capital-guaranteed and not covered by KDIC deposit insurance (which covers bank deposits to KES 500,000). Spreading KES 5 million across 2–3 funds is cheap insurance .
Are MMFs Safe in Kenya?
CMA Regulation
Kenyan unit trusts are licensed and supervised by the Capital Markets Authority. Your cash is held by an independent custodian bank under a trustee—the fund manager cannot touch it for their own business .
Risks to Understand
Yields float: No lock-in rate
Not capital-guaranteed: Funds can, in theory, lose value
No KDIC coverage: Unlike bank deposits
Practical Mitigations
Prefer established managers for core savings
Split large balances across 2-3 funds
Industry Outlook
In 2026, MMFs are transitioning from "wealth-building tools" to more of liquidity management and emergency funds . The era of effortless 13% on a money market fund is fading, but 2026 still offers solid, low-risk returns for Kenyan savers who pay attention to after-tax yield and matching the asset to how soon they'll need the money .
MMFs vs SACCOS vs Banks: Where Should Savings Go?
| Feature | Money Market Fund | SACCO | Bank Savings |
|---|---|---|---|
| Yield | ~9-13% gross | 10-18% dividends | 3-4% |
| Liquidity | 1-3 days | Low (share capital locked) | Immediate |
| Access | Any amount, anytime | Membership required | Any amount, anytime |
| Regulation | CMA | SASRA | CBK |
| Risk | Very low | Varies by SACCO | Low (KDIC protected) |
For liquid savings (emergency fund, short-term goals), the MMF generally wins in 2026: ≈8.5–9.7% net with 1–3 day access, versus 3–4% on bank savings accounts .
SACCOs can pay comparable dividends but lock deposits and require membership. For money you can lock 6–12 months, compare a negotiated fixed deposit or a T-Bill. Long-horizon money belongs in growth assets .
Getting Started: How to Invest
Step-by-Step Process
Choose a fund based on your priorities (yield vs brand safety)
Check requirements: Most funds need KES 1,000 minimum
Download the fund's app or visit their website
Register and provide ID (KYC requirements)
Fund your account via M-Pesa, bank transfer, or mobile banking
How MMF Returns Actually Work
Your money buys units in a fund that holds short-term instruments. Interest accrues daily and is credited monthly . Three numbers matter:
Daily/effective yield: What the fund publishes; already net of the manager's fee (typically 1–2% p.a.)
15% withholding tax: Deducted on every interest distribution; a final tax
Example Calculation
A KES 100,000 investment in Cytonn MMF at 11.43% gross (9.72% net) with monthly compounding:
Monthly interest: ≈ KES 805
Annual net return: ≈ KES 9,700
After 12 months with no withdrawals: ≈ KES 109,700
Frequently Asked Questions
Which money market fund pays the highest interest in Kenya?
As of June 2026, Cytonn MMF leads with 11.43% gross, followed by Nabo (11.34%) and Etica (11.10%). Yields move weekly, so the highest yield is not automatically the best fund—also weigh manager size, withdrawal speed, and consistency .
Is MMF interest taxed in Kenya?
Yes. A 15% withholding tax is deducted by the fund on every interest distribution as a final tax. A fund quoting 11% gross effectively pays ≈9.35% net .
Can I lose money in a money market fund?
It is possible but rare for a well-run, diversified fund. The main risks are a borrower defaulting or a fund chasing risky assets for a higher headline yield, which is why fund size and track record matter more than the top rate .
How fast can I withdraw from an MMF?
Most funds pay out in 1–3 business days (some same-day to M-Pesa for small amounts). That liquidity is the big advantage over fixed deposits and T-Bills .
What is the minimum investment for an MMF?
Etica starts at KES 100, most funds at KES 1,000–5,000, and Nabo at KES 1,000,000 .
Conclusion
Money Market Funds remain the most accessible and practical investment vehicle for most Kenyans. In 2026, they continue offering inflation-beating returns with unmatched liquidity.
Your choice depends on your priorities:
Maximum returns: Cytonn, Nabo, or Etica
Brand trust and scale: Britam, CIC, or Old Mutual
Lowest entry: Etica or Zimele
High-net-worth: Nabo Africa
Golden rules for MMF investing:
Compare net (after-tax) returns, not headline rates
Look at 6-12 month averages, not one hot week
Check withdrawal speed—it matters for emergency funds
Split large balances across 2-3 funds for safety
The era of effortless 13% on money market funds may be fading, but 2026 still offers solid, low-risk returns for Kenyan savers who pay attention to the real numbers. Start with any amount you're comfortable with—even KES 100—and watch your money grow faster than in a savings account
