Published: January 2026 | Updated as markets evolve
When I first started investing in Kenya I struggled to find a safe place to grow my short-term savings. I wanted something better than a bank savings account but not as volatile as stocks.
That’s when I learned about money market funds (MMFs). These funds became a core part of my early investing journey because they offered better returns than a savings account, daily liquidity, and low risk compared to other investment options.
In this post I’ll walk you through the best money market funds in Kenya right now, how they differ, and how I personally evaluate them before putting in my hard-earned money.
What Exactly Is a Money Market Fund?
A money market fund is a type of collective investment that pools money from many investors and places it in short-term, high-quality interest-bearing instruments such as government securities, bank deposits, and commercial paper. Unlike a standard savings account, MMFs aim to deliver higher returns while keeping risk low.
They are regulated by the Capital Markets Authority of Kenya, which gives me extra confidence because the fund managers must follow clear rules.
Why I Like Money Market Funds in Kenya
Before we dive into the best options, let me share why MMFs deserve attention:
Easy to Start
Some funds let you invest with as little as KES 100 or KES 1,000.
Liquidity
Most allow withdrawal within 24 to 72 hours, which is great when money might be needed unexpectedly.
Better Returns Than Savings
Bank accounts in Kenya sometimes offer single-digit interest. MMFs often deliver double-digit AKMS returns (before tax), though net returns after fees and withholding tax can be lower.
Less Volatility
They don’t fluctuate like the stock market, so my principal stays relatively stable.
Top Money Market Funds in Kenya in 2026
Here are the best MMFs I would consider today, based on yield performance, accessibility, trust and regulation.
1. Gulfcap Money Market Fund
I have seen Gulfcap consistently near the top of performance tables for 2026, with strong effective annual returns that outperform many peers. It’s become a favourite for both new and experienced investors who want solid yield without locking their money away for long.
Why it stands out
- High returns
- Accessible
- Good for short-term and medium-term savings goals
Who it’s for
Anyone who wants one of the highest returning MMFs available right now.
2. Cytonn Money Market Fund
Cytonn often shows up as one of the best performing funds based on returns and is popular with investors who care about yield. I like that you can start with small amounts.
Why it stands out
- Strong historical returns
- Easy start-up with low minimums
Things I watch out for
It has faced media scrutiny in the past, so always do your own ongoing checks before committing significant amounts.
3. Ndovu / Mali Money Market Funds
These funds frequently appear in top performer lists for 2026 and are particularly attractive for those who want higher than average returns but still prefer a fairly liquid investment.
Why it stands out
- Excellent yields
- Competitive with top tier funds
Who it’s for
Investors with slightly larger sums who want returns close to the top performers.
4. Etica Money Market Fund
Etica is one of my favourites for its accessibility and affordability, requiring very low entry amounts — sometimes as low as KES 100 — with daily compounding that steadily grows your investment.
Why it stands out
- Very low entry barrier
- Good net returns
Who it’s for
Students or young professionals starting with small investment amounts.
5. Kuza / Lofty Corban Money Market Funds
These are strong performers with returns often above the market average. I like them because they balance return and fund size in ways that appeal to cautious but return-seeking investors.
Who it’s for
People who want a combination of performance and reliability.
How I Personally Choose Which MMF to Use
Over time I developed a simple checklist before investing in any money market fund:
Returns After Fees and Taxes Matter Most
Always look at net returns, not just the headline rate. Annual yields of 15% can quickly go down once you include fees and 15 percent withholding tax.
Liquidity Rules
Some funds take longer to pay out when you want your money back. I make sure I understand the withdrawal timeline before investing.
Management Expertise
A well-managed fund with a clear track record feels more trustworthy to me.
Regulation and Transparency
I prefer funds that are licensed by the CMA and publish daily yield reports so I know exactly how my investment is performing.
Risks You Need to Know Before You Invest
No investment is perfect. Even MMFs have drawbacks.
Returns Can Change
Interest rates in the overall economy affect MMF returns, so current high yields may drop in future.
Inflation Risk
If inflation is higher than returns, your real purchasing power may still decline.
Not Government-Insured
Unlike some bank deposits protected by deposit insurance, MMFs are not insured. This makes choosing regulated funds with strong governance essential.
How to Get Started Today
Here’s how I started my MMF account and how you can too:
- Decide how much you want to invest first — even KES 1,000 is enough in many funds.
- Visit the fund manager’s website or app (for example Sanlam, CIC, Etica).
- Register with your ID and bank details.
- Deposit your first amount through M-Pesa, bank transfer or mobile app.
- Track daily yields and set reminders to add more.
Final Thoughts
For me, money market funds have been an excellent bridge between savings and longer-term investments. They offer high liquidity, better returns than savings accounts, and they let beginners learn about investing without the stress of market volatility.
If you are building your first investment portfolio or you want a safe place to park emergency savings, MMFs should be on your shortlist for 2026.
When I recommend a fund it is always after checking regulation, net returns, and personal goals. So take your time, compare a few, and get started with the one that aligns with your investing plan.
