Top 15 Money Market Funds in Kenya by Net Returns [May 2025]

Money Market Funds (MMFs) continue to be a preferred investment choice for Kenyans looking for stability, liquidity, and better returns than traditional savings accounts. However, in May 2025, the trend of declining MMF yields persisted.

This continued drop is largely tied to falling Treasury Bill (T-bill) rates, as inflation remains low and the broader economy stabilises. Since MMFs invest heavily in short-term government securities, the declining returns on T-bills are pulling average fund yields downward across the market. Earlier this month, Central Bank Governor Kamau Thugge announced that the lending rate had been lowered from 10.00 per cent to 9:75 per cent.

Still, not all funds are performing the same — some MMFs are managing to deliver stronger returns than the rest, standing out even in this lower-rate environment.

Here are the Top 15 MMFs for May and their return rates;

1. Gulf Money Market Fund - average return 13.06% (Net return 11.10%)
2. Cytonn Money Market Fund - average return 12.83% (Net return 10.91%)
3. Kuza Money Market Fund - average return 12.58% (Net return 10.69%)
4. GenAfrica Money Market Fund - average return 12.30% (Net return 10.45%)
5. Etica Money Market Fund - average return 12.21% (Net return 10.38%)
6. Orient Kasha Money Market Fund - average return 11.85% (Net return 10.07%)
7. Arvocap Money Market Fund - average return 11.79% (Net return 10.02%)
8. Lofty-Corban Money Market Fund - average return 11.75% (Net return 9.98%)
9. Enwealth Money Market Fund - average return 11.58% (Net return 9.84%)
10. Old Mutual Money Market Fund - average return 11.44% (Net return 9.73%)
11. Britam Money Market Fund - average return 11.28% (Net return 9.59%)
12. Madison Money Market Fund - average return 11.03% (Net return 9.38%)
13. Jubilee Money Market Fund - average return 10.81% (Net return 9.19%)
14. Nabo Money Market Fund - average return 10.78% (Net return 9.16%)
15. Faulu Money Market Fund - average return 10.54% (Net return 8.96%)

Why MMF Rates Are Falling

The continued drop in MMF returns is closely linked to:

• Falling Inflation: Reduced inflation has eased pressure on interest rates.
• Stabilizing Economic Conditions: The Central Bank’s policy stance has led to lower short-term interest rates.
• Declining T-bill Yields: MMFs heavily invest in T-bills, and their falling returns directly pull down MMF performance.

What Investors Should Keep in Mind

While MMFs remain a compelling option for short-term savings and emergency funds, investors should recalibrate their expectations in light of the current economic cycle. Here’s what to consider:

Liquidity: MMFs still offer quick and flexible access to your money.

Stability: Compared to stocks or unit trusts with equity exposure, MMFs are low-risk.

Returns Are Trending Down: This may require investors to explore complementary vehicles like bonds or fixed deposits for diversification.

Also remember:

Confirm that your MMF is managed by a CMA-licensed fund manager under the oversight of a trustee and custodian bank.

Income from MMFs is subject to a 15% withholding tax, remitted to KRA.

Past performance is not a guarantee of future returns — always review updated rates and fund fact sheets before investing.

April’s MMF results show that while returns are softening, MMFs still offer a safe and liquid way to park your money. Investors may not see the past highs, but consistent investing and strategic diversification remain key to building financial resilience.