The “money markets” are a financial segment where assets provide a relatively near-stable high market-driven rate of return to investors short-term, ranging from a day to a year, meaning money market funds (MMFs) invest in high-quality low-risk securities such as government treasury bills, bank certificates of deposit, repurchase agreements, and commercial papers that can be converted into cash almost immediately and is safe to guarantee capital preservation.

Money market funds are a good option for investors wanting stability and liquidity because they offer investors a liquid and low-risk way of earning interest.

Generally, returns on money market deposit accounts are strongly linked to interest rates, so the best ones pay higher yields.

In Kenya today, assets in money market funds are at all-time highs after the Central Bank of Kenya (CBK) raised its base lending rate to 13%, positively affecting the value of investments and income from this type of mutual fund.

But that does not mean that all money market fund providers are the best because further, returns are also affected by day-to-day inflation, other economies of scale, and the fund manager’s expertise.

To help you get the best money market fund accounts you can open right now, here are the top 5 that have the highest yields:

Today’s top money market account rates in Kenya

What is the best money market fund rate in Kenya? Luckily, it’s easy to find these top-paying accounts. Our Editorial Team analyzed all high-paying money market fund accounts today to produce this list of Top 5 Best Money Market Funds in Kenya in 2024. Check out with their current rates;

No. Institution Nominal rate After-tax rate Real rate (APY) Minimum deposit
1. Etica Money Market Fund 18.20% 15.47% 11.83% Ksh100
2. Lofty-Corban Money Market Fund 17.96% 15.27% 11.60% Ksh1,000
3. Cytonn Money Market Fund 17.06% 14.50% 10.75% Ksh100
4. GenAfrica Money Market Fund 16.88% 14.35% 10.58% Ksh500,000
5. Nabo Money Market Fund 16.79% 14.27% 10.49% Ksh100,000

*Note:

Here are some key facts about money market funds in Kenya –

* On average, the rates of most money market deposit accounts are 8.92% real returns after tax, and the above top 5 of best performing MMFs pay above this
* Their chief regulator is Capital Markets Authority, but all fund managers have different trustees and custodians
* The opening deposit of a GenAfrica Money Market Fund account is Ksh500,000 and not Ksh1,000
* For optimal return impact on your invested capital, most money market funds recommend a 3-month lock-in period
* You can open and manage these money market funds on your phone as withdrawals and deposits are made via Mpesa

Other best-performing money market funds in Kenya are the Kuza Money Market Fund, Enwealth Money Market Fund, and Apollo Money Market Fund, with impressive 10.24%, 9.91%, and 9.64% annual yield rates, respectively.

Read: CIC Kenya Money Market Fund Review in 2024