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Invest in the Best Money Market Fund in Kenya

If you are looking for a way to invest, the Money Market Fund in Kenya is an excellent investment option. There are many companies in Kenya offering money market funds in Kenya. With a Money Market Fund, you get to invest your money for sometime, normally 12 months and earn some returns at the end of the period. In this article, we will focus on what is a money market fund, how it works and a list of the best money market funds in Kenya.

What is Money Market Fund in Kenya?

A money market fund is a kind of a mutual fund that deals with liquid, low risk and short-term securities like cash, cash equivalent securities and debt-based securities. A money market fund is usually safe and secure, highly accessible and earns higher yields.

How a Money Market Fund Works in Kenya

It is very easy to start investing in the Money Market Fund. It does not require you to invest a lot and you can get started with only Ksh 2,500. Besides, the money market fund is a low-risk investment. It is also a safe and secure investment option. Money market funds in Kenya are regulated by the Capital Markets Authority.

Read also: Best investment banks in Kenya.

A Money Market Fund is managed by a professional manager who allocates funds to any of three money market instruments. These three money instruments include:

  • Commercial paper. They are issued by companies to meet their financial needs.
  • Treasury bills. They are issued by the government to borrow funds from the public.
  • Fixed deposits. They are deposits in commercial banks.

The money market fund manager works towards providing financial gains to investors. Money managers are also regulated by the CMA. When you buy a unit of the money market fund, you get a percentage of the money market instruments. 

List of Best Money Market Fund in Kenya

If you are thinking of buying money market funds, it is best that you consider the following money market fund.

1. Cyntonn Money Market Fund

Cyntonn Money Market Fund is a product of Cyntonn Investments. It invests in near-cash holdings, fixed deposits, and interest-bearing investments in Kenya. Cyntonn money market fund interest rates are about 10%. 

Features of Cyntonn Money Market Fund

  • No entry or exit fees
  • Initial starting capital is always safe
  • High competitive rates based on the current market
  • Easy for first-time investors

2. Zimele Money Market Fund

Zimele Money Market Fund is also known as a savings plan. It invests in high-yielding interest-bearing assets like treasury bonds, treasury bills and fixed deposits. It is ideal for building savings for emergencies, investment groups, businesses, short term and long-term goals. Zimele money market fund interest rates are around 9%.

Features of Zimele Money Market Fund

  • A minimum deposit of Ksh 100 with high-interest rates
  • You can deposit and withdraw via Mpesa
  • No minimum balance requirement
  • You can access online statements
  • No hidden fees

Zimele money market fund is ideal for investment clubs and chamas, or when you are saving for emergencies or a wedding. You can also use it when saving for your children's education or healthcare. 

3. Sanlam Money Market Fund

Sanlam Money Market Fund invests in fixed deposits, interest-bearing assets and near cash holdings in Kenya. It is a great option for individual, joint and corporate investors. If you wish to invest your money for a short period of between 1 and 12 months, this is the best money market fund. Sanlam money market fund interest rates are about 9%. 

Features of Sanlam Money Market Fund

  • A minimum investment of Ksh 2,500
  • No account fees charged
  • Sanlam cautions you when there is market volatility
  • Interest is calculated daily and credited to the account of the investor at the end of every month

Read also: SACCO vs. Money Market Fund.

4. CIC Money Market Fund

CIC Money Market Fund invests in near cash, fixed deposits, near cash holding and interest-bearing instruments in Kenya. It is a safe and low-risk investment option ideal when you are planning to invest for less than 1 year. CIC Money Market Fund interest rates are about 8%.

Features of CIC Money Market Fund

  • A minimum investment amount of Ksh 5,000 while the minimum additional amount is Ksh 1,000
  • High liquidity while you can withdraw funds within a short notice without penalty fees
  • No initial fees
  • You can access your money within 2 to 4 working days

Read also: Best investment Saccos in Kenya. 

5. Britam Money Market Fund Kenya

If you are looking for a short-term investment in Kenya, Britam Money Market Fund should be at the top of your list. It helps investors to plan for school fees, save for a wedding, emergency funds and construction projects. Britam money market fund interest rates are about 8%.

Features of Britam Money Market Fund

  • You can invest a minimum of Ksh 1,000
  • You can withdraw money within 48 hours through Mpesa or a bank account
  • You can top up the account using Mpesa
  • Investors can manage their accounts using a mobile phone

6.  CBA Group Money Market Fund

The CBA Group Money Market Fund invests in fixed deposits, near cash holdings and interest-bearing investments in Kenya. It is a great option for first-time investors who are looking for a safe and secure investment. CBA Group money market fund interest rates are about 8%. 

Features of CBA Group Money Market Fund

  • Minimum investment for a CBA unit trust is Ksh 5,000
  • Minimum additional investment amount is Ksh 5,000
  • No entry fees
  • You can reinvest into the fund
  • A management fee of 2% annually
  • Interest is calculated daily and credited to the account of the investor after every month

7. UAP Old Mutual Money Market Fund

The UAP Old Mutual Money Market Fund invests in short-term and high credit quality debt securities like treasury bills. UAP Old Mutual money market fund interest rates are 7%. 

Features of UAP Old Mutual Money Market Fund

  • Minimum investment amount of Ksh 1,000 and a minimum monthly contribution of Ksh 1,000
  • No fixed period of investing in the money market fund
  • Interest is calculated daily and credited to the account of the investor after every month

Read more: List of best hedge funds in Kenya. 

Money Market Fund Interest Rates in Kenya

Fund Manager Daily Yield Annual Rate 
Cyntonn Money Market Fund10.00% 10.52% 
Zimele Money Market Fund9.56% 9.91% 
Sanlam Money Market  Fund8.86% 9.27% 
CIC Money Market  Fund 8.71% 9.02% 
Britam Money Market  Fund8.16% 8.47% 
CBA Money Market  Fund8.02% 8.33% 
Old Mutual Money Market  Fund7.02% 7.25% 

Summary of Money Markets Funds in Kenya

If you are looking for a secure and low-risk investment in Kenya, the Money Market Fund is an excellent option. You can invest as low as Ksh 1,000 for a short period. Most of the market funds do not charge initial, entry and exit fees; hence it is a cheap investment. Most of them offer liquid, flexible and secure investments.

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