Understanding Money Market Funds in Kenya Investment Opportunities

Mr Frederick January 7, 2022 0 Comments

Understanding Money Market Funds in Kenya Investment Opportunities

People are always looking for the best money market funds in Kenya investment opportunities. How do you know which one to go with? This article will help you out!

A Money Market Fund is a low-risk investment mutual fund that invests in highly liquid, short-term instruments. In Kenya, they are regulated by the Capital Markets Authority (CMA). There are over 20 money market funds in Kenya that are regulated by the CMA.

Money Market funds in Kenya pool money from investors and invest in highly liquid short-term investments. These include:

– Treasury bonds

– Treasury bills

– Cash equivalent securities

The interest rate varies day to day depending on the market conditions.

Pros of Investing in the best Money Market Funds in Kenya

  • Highly liquid.

You can access your money within 2- 5 days.

  • Very low risk.

You can hardly lose your money in money market funds in Kenya. You never lose your capital. The funds Investments are almost risk-free. Money Market Funds invest in cash equivalents that have very low risk


  • Little capital is required to get started.

Some money market funds in Kenya require as little as Ksh 100 to get started. The average initial investment lies between 1,000- 5,000 Money Market Funds allow you to invest in areas like treasury bills and bonds that you wouldn’t otherwise invest as an individual.


  • Better returns than bank accounts.


The best money  funds in Kenya have average annual return rates of around 7-10 %. Have higher return rates than banks’ saving accounts. A hedge against inflation as they beat inflation rates.


Why do people prefer investing in Money Market Funds in Kenya?


1) Ideal Avenue to stack your emergency fund.

2)  Ideal Avenue to accumulate your savings for a bigger investment like real estate, buying land or entry into the stock market.


3) Ideal Avenue to stack cash intended to meet your short-term goals like:

– Wedding plans

– Holiday plans

– School fees


Factors to consider when choosing which money market funds in Kenya to invest with.


  • Regulation

Most Funds in Kenya are regulated by the Capital Markets Authority (CMA). Ensure the funds you are investing in is regulated by CMA. Beware of scammers who may want to steal your hard-earned money.


  • Performance Record.

How has the fund performed in the last 5-10 yrs.? Have they been consistent with their returns? How does the returns of the fund compare with other Funds and the market average?


  • Average annual return rates.

Be cautious of  Funds that have higher average annual return rates than their peers or the market average. They may be using more aggressive strategies that may put your money at risk. High return rates may mean high risk.


  • Investment costs.

Money Market Funds charge fees like management fees and withdrawal fees. Many funds may not openly disclose the fees they charge you. Make sure you find out. Investment costs are not your friend. They will shrink your returns.

Go for Funds that charge lower fees. Notably, with many Money Market Funds:

– Management fee is usually 2% of the invested amount.

– Withdrawal falls between 1-1.5% of the invested amount.

  • Ease of Access.

How easily can you access your money? On average, you can get your money within 2-5 business days. Some Money Market Funds allow you to access certain amounts of money within 24 hrs. Some  Funds even allow deposits & withdrawals via Mpesa.

6/ Where do they invest their money?

Look at their portfolios. Are they investing their money in high risky investments? If they are, they are likely to lose your money as they pursue higher return rates.

How do you join?

First, do your research and compare different funds and pick one that works for you according to your interests and preferences. You only need to fill the application form (most of them are online & you can find them on their websites)


– Be at least 18 yrs. of age

– National ID or Passport

– KRA pin – Bank account details

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AboutFredrick TheSEOStrategist
Expert Digital Marketing Specialist with strong interest in SEO Consultancy, Content Marketing Strategy, Web development, Social Media & PPC. The Founder & CEO, SEOProof Ltd & iHub Digital PLC which are currently in Operations in Kenya, Tanzania, Uganda & Ethiopia. I love watching football when I am free.

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