After the Central Bank of Kenya (CBK) raised its lending rates higher than they have been in some time to 13%, if you’re an average Kenyan, a borrower, it is a tough time as consumer borrowing rates have skyrocketed, the capacity to repay existing debt has seen a stretch, and it’s harder to get approved for new loans. But the rate escalation has been a big boon for savers, especially those who save on money market funds like that of CIC Group, as higher rates mean bigger earnings.

CIC Group provides CIC Money Market Fund, whose investment objective is to seek to provide current income while getting inflation protection by investing in government paper and a broad range of liquid instruments with short-term maturity like certificates of deposit, interbank loans, treasury bills, and repurchase agreements (repos).

It is a way for investors to keep cash safe while earning consistent income because it is less risky. Also, it can be the best option for those seeking to maintain an emergency fund to help meet expenses without disrupting their investment plan or borrowing high-interest loans in times of need.

How much interest does the CIC money market pay?

In 2024, the average CIC Money Market Fund annual yield is at 9.64% as per their financial declaration posted in May 2023 compared to the 8.86% Effective Annual Yield for the fiscal year ended Dec. 2021, a rise by almost a percent in 1.5 years but the Fund Manager has urged investors to be optimistic and promised to strive to pay above inflation, especially after the rates on government securities climbed last year.

“The money market fund rate is expected to gradually increase as maturities are repriced to reflect the increased rates,” CIC Asset Management Ltd said.

How do you invest in CIC money market funds?

CIC Money Market Fund

After deciding that you want to invest in this mutual fund managed by CIC Asset Management Ltd, it is time to open your own CIC Money Market Fund account and start investing online to access potentially higher yields on your cash.

To register your account, go to CIC’s website, and on the homepage, go to ‘Invest in Money Market Fund’ or click clients.cic.co.ke then the ‘Invest’ tab for new users then choose an account type that you’d like to use to purchase the mutual fund online as either Individual Members, Joint Member, Company, Junior, and Student and complete your registration.

You will need your National ID and details of at least one beneficiary, such as their name, birth date, and ID number, for a successful account opening. It takes less than 10 minutes, and you will get an email response from the CIC Group within 1-2 working days.

How much do you need to invest with CIC?

New investors make an initial minimum investment of Ksh5,000 upon registering and getting the CIC Money Market Fund account to take advantage of its high interest, which accrues daily based on prevailing market rates and inflation, and pay annual costs, known as the Annual Management Fee, now 2%, to maintain the fund and the interest earned is taxed at 15%. This is withholding tax, which is a final tax.

The minimum additional deposits of Ksh1,000 apply to this mutual fund account when you are making regular top-ups.

You can deposit money via MPESA directly to your CIC Money Market Fund account using their pay bill number 600118, and the account number is the member number