Kenyan Money Market Funds (MMFs) continue to deliver competitive returns as of November 2025, with the top-performing funds offering effective annual yields (EARs) of approximately 12.0%. Although market rates have shown gradual adjustments in recent weeks, leading MMFs remain positioned to provide returns above prevailing inflation, supporting their appeal for short-term and low-risk investors.
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Top MMF Performers (as of November 10, 2025)
| Rank | Fund Manager | Effective Annual Rate (EAR) |
| 1 | Nabo Africa Money Market Fund | 12.0% |
| 2 | Cytonn Money Market Fund | 12.0% |
| 3 | Etica Money Market Fund | 11.7% |
| 4 | Lofty-Corban Money Market Fund | 11.6% |
Rates are subject to daily revision and are reported before the 15% withholding tax.
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Market Themes and Influencing Factors
Stable Interbank Market Conditions
Liquidity in the interbank market remained strong during the week ending November 6, 2025, with the interbank lending rate steady at around 9.25%. This stability has enabled MMF managers to maintain consistent yield profiles across their short-term investment portfolios.
Impact of the CBR Adjustment
In October, the Central Bank of Kenya reduced the Central Bank Rate (CBR) to 9.25%. This policy move has started to filter through to government securities, with yields gradually adjusting downward. As MMFs heavily allocate to these instruments, a moderate softening of MMF yields is expected over time as portfolio holdings are rolled into newly priced assets.
Variation in Fund Performance
A considerable spread remains between the highest- and lowest-yielding MMFs in the market—at times exceeding a twofold difference. This underlines the importance of evaluating fund manager capability, asset mix discipline, and historical consistency, rather than relying solely on familiarity or distribution convenience.
High Liquidity Conditions
Commercial banks continued to hold meaningful excess reserves—approximately KSh 12.3 billion above the 3.25% regulatory minimum—contributing to an active short-term funding environment and supporting stability in money market pricing.
Investor Dynamics
Newer MMFs have adopted more assertive positioning strategies in order to gain market share, frequently placing them among the upper tier of yield providers. Local participants remain heavily involved in the capital markets, reinforcing demand for yield-driven instruments.
Outlook
Yields across MMFs are expected to adjust incrementally in response to the broader decline in government securities rates. However, returns are still likely to remain attractive relative to inflation, thereby sustaining positive real yields. For investors prioritizing capital preservation, liquidity, and competitive income, MMFs remain a compelling allocation option in the near term.
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