Top MMFS in Kenya, Based on November 2024 Returns

In today’s uncertain economic times, maximising income generation has become more critical than ever. Amid the rising cost of living and volatile economic conditions, investors are seeking investment options that offer capital preservation and generate steady returns. Over the years, Money Market Funds (MMFs) have proven to be a reliable choice for Kenyans, offering stability and liquidity.

November's MMFs performance highlights notable trends, showcasing funds that continue to outperform peers despite the tough economic environment. The average daily effective rate declined to 13.32% p.a., down from 14.21% in October. This reflects the ongoing downward trend in MMF rates observed over the last four months. This decline can be attributed to falling Treasury Bills (T-bills) returns, a key contributor of MMF yields, which form a significant component of MMF yields due to their low-risk, short-term nature.  

Despite the overall decline, the Cytonn Money Market Fund topped the chart of top-performing MMFs with an average daily return of 16.60% and a net return after tax of 14.11%. Lofty-Corban Money Market Fund followed closely with a daily average of 16.24% and a net return rate of 13.1%. Other notable MMFs that performed well include Etica (15.80%), Arvocap (15.44%) and Kuza (15.14%).

Here is a list of the Top 15 MMFs in Kenyan for November 2024 based on their daily average returns

1.     Cytonn Money Market Fund – 16.60%

2.     Lofty -Carbon Money Market Fund -16.24%

3.     Etica Money Market Fund -15.80%

4.     Arvocap Money Market Fund – 15.14%

5.     Kuza Money Market Fund – 15.14%

6.     KCB Money Market Fund – 14.29%

7.     Jubilee Money Market Fund -14.21%

8.     Nabo Africa Money Market Fund- 14.21%

9.     Faulu Money Market Fund - 14.15%

10.  Madison Money Market Fund -13.87%

11.  Genghis Money Market Fund -13.76%

12.  Mayfair Money Market Fund – 13.74%

13.  Emwealth Money Market Fund -13.72%

14.  Sanlam Money Market Fund – 13.72%

15.  GenAfrica Money Market Fund – 13.64%

However, the average daily return is not the only factor to consider when choosing the right MMF. It is essential to ensure that the fund manager is licensed by the Capital Markets Authority (CMA). A reputable fund manager should operate under the oversight of a trustee and custodian bank. You should also consider the fund’s asset allocation strategy, as diversification is key to maximizing returns and minimizing risks. A well-managed fund offers diversification across various asset classes, as outlined in its investment policy.

Other important factors to consider are the management fees charged by the fund manager and ease of accessibility. Review the fund's prospectus to understand its fees, investment objectives, and associated risks. Consulting with a financial advisor can help determine if MMFs align with your investment goals and risk tolerance.

It is crucial to note that income generated from MMFs is subject to a 15% withholding tax, which is remitted to the Kenya Revenue Authority (KRA). Investors in money market funds should also consider the current inflation rate, short-term interest rates, and the central bank rate (CBR) when making investment decisions. A drop in CBR can have a cascading effect on MMF rates.

Generally, money market funds offer higher interest rates than most interest-bearing bank accounts. However, Sacco dividends remain an attractive option for investors seeking long-term investments. If you aim to maximize returns from an MMF, consider investing consistently.

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