As Benjamin Franklin puts it, “A penny saved is a penny earned.” However, saving is only beneficial if done in the right avenues. MMFs in Kenya provide a secure option to save and earn better interest than in bank savings accounts. But which is the best money market fund for your financial goals?
To help you identify the best MMF in Kenya in 2025, we have ranked the top 10 MMFs in Kenya, including Safaricom’s Ziidi. We have also created a simple guide to help you open an MMF account to kickstart your investment journey. But first things first, let’s define the term MMF.
What Is MMF?
A Money Market Fund (MMF) is a mutual fund that invests primarily in various low-risk asset classes, commonly called money market instruments. These include:
- Fixed deposits
- Treasury bills (T-bills)
- High-quality commerce paper and
- Treasury bonds
MMFs allow you to start investing from as low as Ksh.100. The funds are managed by professional managers who invest the money on your behalf, optimize the returns, and give regular updates to all investors.
In Kenya, USD MMF and regular MMF are supervised by the Capital Markets Authority (CMA) in conjunction with the Central Bank of Kenya (CBK) to ensure compliance with legal and financial regulatory standards.
Here are a few aspects to keep in mind about MMF Kenya:
- Your MMF earnings are taxed at a rate of 15% through withholding tax.
- In most cases, MMFs only show interest earned before taxes and other charges.
- When withdrawing your money, you may have to wait a day or two for the transaction to be processed and published.
- Interest rates usually fluctuate every day depending on the prevailing market conditions.
- The top MMF in Kenya offers an average of 18.3% annual returns on your investment.
- MMF interest is compounded daily, weekly, or even monthly.
- Each of the MMFs has a unique initial minimum investment limit of Ksh.100, Ksh.200, or Ksh.1000.
- The MMF custodian ensures the investors’ money is safe until withdrawal, while the trustee supervises the custodian and fund manager to ensure effective management.
How to Open an MMF Account in Kenya
Here is a step-by-step guide to open an MMF account in Kenya:
- Choose your sign-up option: MMFs allow new investors to open a new account using a unique USSD, mobile app, or through their website. If you prefer the USSD option, dial the given code, press okay, and then follow the on-screen prompts to complete the process.
- Mobile app option: To register via your mobile device, download the money market fund’s mobile app. Open the app and then follow the steps below to create your account and leverage the best MMF interest rates in Kenya.
- MMFs official website option: If you intend to join through the MMFs online platform, visit the official website. Click ‘Open Account’ and then fill out the MMF application form with details such as your name, email address, KRA PIN, national ID/passport, and other mandatory information.
- Submit the form and verify your account: After confirming all details are correct, submit the MMF application form for registration. To verify your account, open the email and tap the activation link sent by the fund manager.
- KYC Process: When opening an account, you must submit personal identification documents such as an ID or passport and a KRA PIN.
- Deposit the initial investment: After approval, you can make your first deposit to your MMF account. For example, you can deposit Ksh. 1000 via M-pesa, bank transfer, or even at the holder’s offices (especially for bank-owned MMFs).
Once the application is successful and the deposit has been processed, you can start monitoring the investment via the mobile app or the MMF’s official website.
Top 10 MMFs in Kenya
| MMF | Interest Rate (Before Tax) | Interest Rate (After Tax) |
| Lofty Corban Money Market Fund | 16.48% | 14.01% |
| Gulfcap Money Market Fund | 16.25% | 13.81% |
| Etica Money Market Fund | 16.14% | 13.72% |
| Kuza Money Market Fund | 15.94% | 13.55% |
| Kasha Money Market Fund | 15.49% | 13.17% |
| Arvocap Money Market Fund | 15.40% | 13.09% |
| Ziidi Money Market Fund | 15.12% | 12.85% |
| Faulu Money Market Fund | 14.53% | 12.35% |
| Sanlam Money Market Fund | 14.08% | 11.97% |
| Madison Money Market Fund | 14.00% | 11.90% |
1. Lofty Corban Money Market Fund
Lofty Corban Investments Ltd owns Lofty Corban Money Market Fund. The fund, which has an annual rate of 17.2%, allows investors to start with Ksh. 1000 and additional minimum deposits of Ksh. 100.
- Annual Management Fee: 2.0%
- Custodian: Equity Bank
2. Gulfcap Money Market Fund
Gulfcap Money Market Fund is yet another well-performing MMF in Kenya. Owned by Gulfcap Investment Bank, this fund offers low minimum deposits and high MMF rates Kenya.
3. Etica Money Market Fund
Investors can join Etica MMF Kenya by Etica Capital Limited for free and start investing from as low as Ksh.100. The fund has a management fee of 2.0% and an average annual return of about 16.3%. Equity Bank Kenya Limited is the fund’s custodian.
4. Kuza Money Market Fund
With Ksh. 1000, you can invest in Kuza and enjoy an annual yield of up to 15.68%. Investors can top up their investments with regular deposits of Ksh. 1000. Its custodian is KCB, and its annual management fee is capped at 2.0%.
5. Kasha Money Market Fund
Kasha Money Market Fund has achieved an average of 14.0% annual returns. Its annual management fee is only 2%, and investors can deposit Ksh. 1,000, with subsequent investments of the same amount
6. Arvocap Money Market Fund
Arvocap assures its investors that it will secure their future by prioritizing the growth of their investments. The MMF’s initial investment is Ksh. 3000, and additional deposits are capped at Ksh. 1000.
The fund offers an annualized return of 16.5% and requires an annual management fee of 2%. NCBA Bank PLC is the fund’s custodian.
7. Ziidi Money Market Fund
Are you interested in mobile MMFs in Kenya? Safaricom offers the chance to earn interest on your savings with Ziidi.
You can start with a Ksh 100 deposit and withdraw from as low as Ksh 10. The company’s annual management fee is 2%, which is the industry standard. Investors can track the performance of their investments on the Ziidi mini app.
8. Faulu Money Market Fund
With only Ksh. 1000, you can start your investment journey with the Faulu Money Market Fund. Faulu offers an average annual return of 16.32%, impressive monthly returns, and unrivaled liquidity.
9. Sanlam Money Market Fund
Sanlam is one of the best-performing MMFs in Kenya, allowing investors to leverage a low annual management fee of only 1.5%, below the industry average.
However, its initial deposit is Ksh. 2500, which is higher than the industry standard. Additional deposits start at only Ksh. 1000.
10. Madison Money Market Fund
You can invest in the Madison Money Market Fund starting from Ksh. 5000. Subsequent deposits start at only Ksh. 1000. You can invest more via Mpesa, Pesa Link, bank transfers, and direct deposits.
FAQs
What is the highest-paying money market fund?
Cytonn Money Market Fund is the highest-paying MMF in Kenya, with an annual average rate of 18.3% in 2024.
What is the interest rate for the KCB money market fund in 2024?
KCB’s MMF had an interest rate of 15.90% in 2024.
How much money should I put in a money market fund?
The amount of money you should invest in MMF depends on your financial goals and risk tolerance.
Which is the best MMF calculator in Kenya?
Etica offers one of the best MMF calculators for calculating your investment’s potential returns.
