Money Market Fund(MMF) in Kenya
Ziidi, Etica, Stanbic, Nabo, Kuza, CIC, Madison & Sanlam
Introduction
The Money Market Fund (MMF) has become an increasingly popular investment in Kenya for earning attractive short-term interest on cash while preserving capital. MMFs are low-risk collective investment schemes that invest in short-term debt instruments like Treasury bills, bank deposits, and commercial paper. In this report, we research eight notable Kenyan MMFs – Safaricom Ziidi, Etica Capital, Stanbic Bank, Nabo Capital, Kuza Africa, CIC Insurance, Madison Investment, and Sanlam East Africa – and compare their features. We’ll look at each fund’s annual return, example earnings on KSh 100,000, minimum investment, fees, withdrawal terms, and how to get started. Finally, we provide a comparison of pros and cons and an FAQ section about MMFs to answer common questions.
Table of Contents
Safaricom Ziidi Money Market Fund (via M-PESA)
Safaricom’s Ziidi MMF is a new unit trust product accessible through M-PESA, allowing even small investors to earn daily interest on idle M-PESA balances.
ziidi mmf interest rates Variable
Minimum Starting Amount: KSh 100
Fees: No upfront or transaction fees. Moving money to/from M-PESA is free. A fund management fee of 2% p.a. is charged within the fund, but the interest rate shown to users is net of this fee (Interest is subject to 15% withholding tax by law).
Withdrawal Terms: How long does it take to withdraw from ziidi to mpesa? Instant access – You can withdraw any time and the funds are received immediately in your M-PESA wallet. There is no lock-in period or notice period; your money remains liquid in real-time. Ziidi imposes no limits on number of withdrawals per day and no penalties for withdrawing.
Link to Get Started: Available to any M-PESA user. Simply open the M-PESA App and find Ziidi under “Wealth” or dial *334# on your phone to register and access Ziidi. Signup is paperless and secured by your M-PESA PIN. Is there a ziidi paybill number for depositing into the mmf? It seems the whole procees is done through the mpesa app or using the ussd code above
Website link: Visit Safaricom Ziidi for more details
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Learn MoreEtica Capital Money Market Fund (KES)
Etica Capital’s MMF is a high-yield fund emphasizing technology for easy access. It currently boasts one of the highest returns in the market.
Key details:
Annual % Return (Net): ~17.55% Effective Annual Yield (net of all fees, gross of withholding tax)
Example Return on KSh 100,000: At 17.55% p.a., ~KSh 17,550 interest in one year (before 15% withholding tax). After tax, this would be around KSh 14,918 net annual income. This translates to roughly KSh 48.1 per day earned on KSh 100K.
Minimum Starting Amount: KSh 100 only
Fees: No initial fees (0% entry). The management fee is 2.0% per annum.
Withdrawal Terms: No lock-in; highly liquid. You can withdraw anytime. Withdrawals up to KSh 250,000 to M-PESA are processed instantly (in seconds) at any time (even nights/weekends). Larger withdrawals (above KSh 250k) or bank transfers are paid within 2 working days. Notably, withdrawal to M-PESA has a daily limit of 250k (matching M-PESA limits). There are no charges or penalties from Etica for withdrawals besides the nominal M-PESA fee.
Link to Get Started: You can open an account digitally in ~3 minutes via their mobile app (iOS/Android) or web portal. Visit the Etica site and click “Open Account”, or use the Etica apps (available on app stores). Funding can be done through M-PESA Paybill or bank, as detailed on their site.
Website link: Explore Etica Capital Money Market Fund (KES) details
Stanbic Bank Money Market Fund
Stanbic Bank’s MMF (managed by SBG Securities) is a trusted option from a major banking group. It focuses on stability and capital preservation.
Key details:
Annual % Return (Net): ~8.89% annualized return (indicative rate, subject to change daily). For example, Stanbic quoted a daily yield of 8.52% translating to 8.89% annual as of Feb 2025. (This yield is net of fees but before withholding tax)
Example Return on KSh 100,000: At 8.89% p.a., one would earn about KSh 8,890 in a year (before tax), which is roughly KSh 24.3 per day on 100k.
Minimum Starting Amount: KSh 1,000 initial investment. (Additional contributions minimum KSh 1,000 as well)
Fees: Management fee ~2% p.a. + VAT (already accounted for in the net return).
Withdrawal Terms: No fixed lock-in. Redemptions are processed on a T+1 basis – if you place a withdrawal request before the daily cutoff (9:00am EAT), you get that day’s price; after 9am, you get next day’s price. In practice, this means funds are typically available within 1 working day (next day) or 2 days at most. You have to request withdrawal via the provided channels (email form or USSD). There are no penalty fees for withdrawal.
Link to Get Started: Several options: dial *208# on your phone to invest via USSD, or fill out the Unit Trust application form (available on Stanbic’s website) and email it or submit at a branch. You can also inquire online (there’s a “Money Market Fund Investment Solution Enquiry” form on their site) or contact Stanbic’s wealth management department for assistance.
Website link: Explore Stanbic Bank Money Market Funds
Nabo Capital Money Market Fund (KES)
Nabo Capital (a subsidiary of Centum) offers a KES Money Market Fund aimed at high net-worth and institutional investors, with a strong track record of stable returns.
Key details:
Nabo capital money market fund interest rate ~14.89% average effective annual yield as of Jan 2024
Example Return on KSh 100,000: At 14.9%, you’d earn roughly KSh 14,900 per year before taxes. After 15% withholding tax, that’s about KSh 12,665 annual take-home from 100k.
Minimum Starting Amount: KSh 100,000 initial investment. Top-ups require a minimum of KSh 10,000. (Nabo’s minimum is relatively high, reflecting its targeting of larger investors.)
Withdrawal Terms: High liquidity, no penalties. While Nabo recommends staying invested at least 3 months to optimize returns, there is no strict lock-in. Investors can withdraw on demand; Nabo allows quick access to funds without any penalty fees. (Withdrawals likely take 1–2 working days to process, similar to industry norms, though “high liquidity” suggests funds available at short notice.) There are no limits on withdrawal amounts beyond providing notice for very large redemptions.
Link to Get Started: You can “Invest Now” via Nabo’s website by filling in your details. Alternatively, contact Nabo Capital’s investment team through their site or offices to complete the account opening.
Website link: Discover Nabo Capital Money Market Fund
Kuza Africa Money Market Fund (KES)
Kuza Asset Management’s MMF is a newer fund designed to offer inflation-beating returns with minimal risk.
Key details:
Annual % Return (Net): 15.28% Effective Annual Yield (as of Jan 31, 2025). This is net of fees and before withholding tax.
Example Return on KSh 100,000: At 15.28%, one would earn about KSh 15,280 in a year pre-tax. After 15% tax, that’s ~KSh 12,988 net per year. This equates to roughly KSh 41.8 interest per day on 100k.
Minimum Starting Amount: KSh 1,000 initial, and KSh 1,000 for any additional top-up. This low minimum makes it easy for individuals to start.
Fees: Annual management fee 2.00% (already factored into the yield). No entry fees. The fund distributes interest monthly. There may be nominal transaction fees if using certain withdrawal channels (see below), but Kuza itself does not charge upfront or exit fees.
Withdrawal Terms: 14-day lock-in period on new investments. This means you must wait two weeks after investing before you can make your first withdrawal. After the 14 days, the fund is open-ended: you can partially or fully withdraw anytime. Withdrawals are processed quickly: within 1 working day for M-PESA withdrawals and within 2 working days for bank transfers. Bank withdrawals have no such limit; the first two bank withdrawals per month are free, but any additional bank withdrawals in the same month incur a KSh 750 fee each. Notably, no interest is earned on funds during the lock-in period, but this mechanism helps encourage a slightly longer investment horizon.
Link to Get Started: You can download the Kuza.Africa app (available on Google Play and Apple App Store) to open an account and manage investments. Alternatively, visit the Kuza website and fill out the Individual Application Form for unit trusts.
Website link: Explore Kuza Africa Money Market Fund (KES)
CIC Insurance Money Market Fund
CIC Asset Management runs one of the largest and most established MMFs in Kenya, trusted by many investors for its stability. It’s known for strong liquidity and no-nonsense access to funds.
Key details:
Annual % Return (Net): ~9.97% effective annual yield (net of fees, gross of tax) as of Nov 2024.
Example Return on KSh 100,000: At ~9.97%, about KSh 9,970 interest per year pre-tax, or roughly KSh 8,475 after 15% tax. That’s ~KSh 27.3 per day on 100k.
Minimum Starting Amount: KSh 5,000 initial deposit. Minimum additional contributions are KSh 1,000.
Fees: No initial fee (0%). Annual management fee is 2.00% deducted within the fund. Interest is calculated daily and credited monthly. There are no penalty fees on withdrawals – you get full accrued interest even if you withdraw, with no charges for redeeming.
Withdrawal Terms: Highly liquid, no lock-in. CIC’s MMF allows you to withdraw your funds on short notice with no penalties. This means you can redeem any time without losing earned interest. In practice, redemption requests are typically processed within 2 working days (and often sooner) via EFT to your bank account or via the CIC Unit Trust Portal.
Link to Get Started: You can apply online through the CIC Unit Trust Portal or by filling out a form available on their website. CIC has a self-service Investment Portal where existing customers can log in.
Website link: Explore CIC Insurance Money Market Fund
Sanlam East Africa Money Market Fund
Sanlam’s Money Market Fund is managed by Sanlam Investments East Africa, part of one of Africa’s largest financial groups.
Key details:
Annual % Return (Net): ~15.3% effective annual yield (recent). In mid-2024, Sanlam MMF was yielding about 15.32% (net of fees, gross of tax). After the 1.2% management fee and 15% withholding tax, the “real” take-home yield was about 9.68%.
Example Return on KSh 100,000: With ~15.3% gross, that’s KSh 15,300 per year. After 15% tax, approximately KSh 13,000.
Minimum Starting Amount: KSh 2,500 initial, KSh 1,000 for subsequent top-ups.
Fees: Management fee of ~1.2% – 1.5% p.a. There are no upfront charges to invest. Withdrawals: Sanlam allows one free withdrawal per month and charges KSh 500 for each additional withdrawal within the same month.
Withdrawal Terms: Funds available within 3 working days of request. Sanlam doesn’t have a lock-in; you can request withdrawal anytime. They commit to fulfilling redemption requests in T+3 days or less (often sooner).
Link to Get Started: You can apply online via Sanlam’s investment portal. Go to the Sanlam Investments East Africa website, navigate to the Money Market Fund page, and click “Start Investing”.
Website link: Explore Sanlam East Africa Money Market FundFrequently Asked Questions
There isn’t a single “best” money market fund for everyone – it really depends on what criteria you value most (highest return, easiest access, lowest minimum, sponsor reputation, etc.). Here are a few top contenders in different aspects, based on current information:
Highest Returns:
As of early 2025, some of the top-yielding MMFs are Etica Money Market Fund (around 17% annual yield), Sanlam Money Market Fund (~15% annual yield), Madison Money Market Fund (~14-15% yield), and Kuza Money Market Fund (~15% yield). These funds might be considered “best” if your goal is maximizing interest earnings. They have consistently been ranked among the top in industry reports for yield. However, always compare net of fees and after-tax returns, which for most is simply yield * 0.85 (to account for 15% tax).
Lowest Minimum & Accessibility:
If you are starting small or want digital convenience, Safaricom’s Ziidi MMF is excellent – minimum KSh 100 and fully mobile. Etica also has a tiny minimum (KSh 100) and a great app. Sanlam (min KSh 2,500) and Apollo (min KSh 1,000) are good mid-range options that balance low entry with strong performance. These might be the “best” for a beginner or someone who wants an easy set-up. Ziidi’s ease of use via M-PESA is unmatched for convenience – no forms and instant liquidity.
Liquidity & Withdrawal Speed:
If instant access is your priority, Ziidi is the best (instant withdrawals to M-PESA), followed by Etica (instant M-PESA for ≤250k). Most other funds will have you wait 1–3 days for your money (which is still quite fast). But having near-instant liquidity 24/7 can be a game-changer if you need it – Ziidi shines here, making it arguably the best for emergency access to your cash.
Size and Trust:
CIC Money Market Fund is the largest in Kenya by AUM (over KSh 60 billion) and has been around for a decade, serving thousands of investors. Sanlam and Madison are also well-known companies. If you feel more comfortable with a big, established fund, those might be “best” for peace of mind (even though all CMA-licensed funds follow strict rules, some people like knowing many others use the same fund).
Money Market Funds in Kenya work in fundamentally the same way as MMFs elsewhere, but let’s outline the specific context and process for Kenya:
Opening an Account:
You select a Kenyan fund manager offering an MMF (for example, CIC, Sanlam, Madison, etc.). You complete their application (nowadays many allow online or via mobile). You’ll comply with Know-Your-Customer (KYC) requirements – usually providing your national ID, KRA PIN (tax ID), a photo, and bank or M-PESA details. Once your account is set up (you become a unit holder in the trust), you can invest.
Investing (Contributions):
You deposit money into the MMF. In Kenya, this can be done via bank transfer, M-PESA Paybill, cheque, or even cash deposit depending on the provider. Many providers have dedicated Paybill numbers to make it easy to contribute via mobile money. Your money is converted into units of the fund. Most Kenyan MMFs keep their unit price at KSh 1 or KSh 100; some use a variable price. Often, 1 unit = KSh 1, so if you invest KSh 10,000, you get 10,000 units. The unit price may creep up over time as interest is added (or they might keep price fixed and just issue you fractional units as interest – either method yields the same result).
Earning Interest:
The fund manager pools your money with others and invests in approved short-term instruments (e.g., Kenyan Treasury Bills, bonds under 1 year, fixed deposits in banks, high-quality commercial paper). These investments generate interest income. The fund manager calculates the fund’s yield daily and updates the value of the fund. In Kenya, most MMFs quote a daily yield and an effective annual yield. The interest you earn is accrued daily and typically credited monthly in the form of additional units or a higher unit value. So, you will see your account balance growing. For example, if on January 1 you put KSh 100k and the fund yields 10% p.a., by end of January you might see roughly KSh 100k * (1 + 10%/12) = ~KSh 100,833 (before tax), meaning ~833 units were added for interest (then 15% tax is deducted, leaving ~708 units net added). Some funds credit the interest units on the last day of the month; others could do it daily. Either way, you earn and compound interest continuously as long as your money stays in the fund.
Withdrawing (Redemptions):
To withdraw, you place a request with the fund – this could be through an online portal, a form, USSD, or even a phone app/SMS, depending on the provider. For instance, you might enter the amount you want to withdraw (or number of units). The fund manager will then sell those units on your behalf – essentially, they will give you cash and reduce your holdings accordingly. In Kenya, withdrawal payments can be sent to your bank account via EFT/RTGS or sometimes to M-PESA (many funds now offer M-PESA payouts for convenience). Each fund has a stated turnaround time – many commit to 48 hours or so. The actual process involves the fund possibly using cash on hand or selling some of its holdings to raise cash, but because MMF assets are very liquid (short term), this is straightforward. No interest penalty – you receive all accrued interest up to the day of withdrawal (most funds calculate interest up to the day before withdrawal, and pay you that). The fund will also deduct the 15% withholding tax on the interest portion automatically. Once you withdraw, your units are deducted and you simply have less money remaining in the fund earning interest going forward. Notably, Kenyan MMFs do not guarantee principal or a fixed return, but they strive to maintain a stable NAV. Cases of losses are extremely rare (would require something like a default of a major investment, which historically hasn’t happened in Kenyan MMFs). The CMA regulations also ensure funds keep a good chunk in very liquid assets (cash, interbank, etc.) to meet redemptions.
Ongoing:
You can leave your money in the fund for as long or short as you like (subject to any recommended minimum period – e.g., some suggest keeping for at least a month or three to fully benefit, but you are not forced to keep it there). You will receive periodic statements (monthly or quarterly) showing contributions, withdrawals, interest earned, and taxes deducted. Many funds also publish their daily or weekly yields in newspapers or on their websites for transparency. If the fund’s yield changes (which it will with interest rate trends), you’ll simply earn more or less accordingly – there’s no action needed on your part. In essence, the fund works for you in the background.
Calculating MMF interest can be done in a couple of ways, but generally you don’t have to manually calculate it – the fund does it for you and credits your account. However, it’s useful to understand the math behind it:
Annual Yield
Money Market Funds quote an annual rate of return (often called Effective Annual Yield or Annualized Yield). Let’s say an MMF has a 10% p.a. yield. This is usually the net yield (after management fees, before withholding tax).
Daily Interest Calculation
Most MMFs calculate interest daily. So on a given day, the daily rate is roughly the annual rate divided by 365. For 10% p.a., the daily rate is about 0.0274% per day (that is 10%/365). If you had KSh 100,000 in the fund that entire day, you’d earn about 100,000 * 0.000274 = KSh 27.40 that day. If the rate stays the same all month, over 30 days that’d be ~KSh 822. (Funds actually often use actual days of the month or a 365-day basis – which is a fine detail, but 365 is a good assumption.)
Monthly/Periodic Credit
Many funds credit interest monthly. They accumulate those daily accruals and, at month-end, credit your account with additional units or a higher unit value. For example, if a fund yielded 0.83% in a particular month, that’s what you’d have gained on your investment (before tax). With compounding, the next month you’re earning on a slightly higher balance if you didn’t withdraw the interest.
Example Calculation
Suppose you invest KSh 50,000 at an 8% annual yield. To estimate your monthly earnings: 8% of 50,000 = KSh 4,000 per year. Dividing by 12 gives approximately KSh 333 per month. For a more precise approach, 50,000 * 0.08 = 4,000 per year, which is about 10.96 per day (4,000/365). Over 30 days, that’s roughly KSh 329 (with compounding adding a slight increase).