Top Money Market Funds in Kenya, Based on October 2024 Returns

Investing in Money Market Funds (MMFs) remains a popular choice for Kenyans seeking stable, short-term returns. However, October 2024 saw a decline in MMF rates, continuing a downward trend. The overall average daily effective rate dropped to 14.21% per annum, down from September’s 14.48% rate. 

This decline mirrors the dip in Treasury Bill (T-bill) returns, a primary component of MMFs due to their low-risk, short-term nature. When T-bill rates fall, MMF returns generally decrease as well, reflecting the dependence on T-bill income for MMF yields.

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Despite the decrease, several MMFs maintained strong performances. Leading the October rankings were Lofty Corban Money Market Fund and Cytonn Money Market Fund, each with an impressive average daily return of 16.64% per annum. After-tax, this translates to a net return of 14.15% per annum. 

Here’s the top 15 list of MMFs in Kenya for October 2024 based on their daily average returns:

1. Lofty Corban Money Market Fund – 16.64%
2. Cytonn Money Market Fund – 16.64%
3. Etica Money Market Fund – 15.95%
4. Arvocap Money Market Fund – 15.78%
5. Kuza Money Market Fund (KES) – 15.73%
6. GenAfrica Money Market Fund – 14.98%
7. Apollo Money Market Fund – 14.86%
8. Nabo Africa Money Market Fund – 14.67%
9. Jubilee Money Market Fund – 14.60%
10. KCB Money Market Fund – 14.41%
11. Co-op Money Market Fund – 14.29%
12. Madison Money Market Fund – 14.28%
13. Absa Shilling Fund MMF – 14.41%
14. Enwealth Money Market Fund – 14.41%
15. SanlamMoney Market Fund – 14.41%

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In October, T-bill rates also experienced a decline, affecting MMF yields. At month-end, T-bill rates stood at 15.61% for the 91-day bill, 16.45% for the 182-day bill, and 16.70% for the 364-day bill. 

For investors interested in long-term returns, Sacco dividends remain an attractive option. Recent data from Money254 reveals that top Saccos have continued to offer dividends on member deposits as high as 13%, with the average return on Sacco deposits in 2024 remaining at 9.6%.

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