Money Market Funds (MMFs) are a popular investment option for individuals and institutions looking to earn a reasonable return on their cash reserves while maintaining a high degree of safety and liquidity. They are mutual funds that invest in short-term, low-risk securities, such as government bonds, commercial paper, Treasury Bills and Certificates of Deposit (CDs).

MMFs in Kenya are regulated by the Capital Markets Authority (CMA).

Most Money Market Funds have a minimum investment amount – the minimum amount you must invest to open an account. Different MMFs have varying minimum investment requirements before investing starting from as low as KES 100.

Below is the list of the top 10 MMFs in Kenya with the lowest minimum initial investment required as of March 2023;

1. Zimele Money Market Fund

Leading the list is Zimele MMF (Savings Plan) with the least minimum initial investment of KES 100. The institution allows top-ups of KES 100.

More features making Zimele MMF preferable include:

Allows re-investment of returns
Provision of well detailed transaction statements
Quick cash withdrawals

2. ICEA LION Money Market Fund

At ICEA LION, you can set up your Money Market for as little as KES 500 and top up with whatever amount you wish to save or invest at any time. There is neither a minimum top-up amount nor any withdrawal fees charged.

Other key features of the ICEA LION MMF include:

Ease of access to funds (liquidity) – for amounts less than KES 10,000 via mobile money, you can access your funds under 24 hours, whilst those above KES 10,000 can be sent to your bank account within 3 working days.
Preservation of your capital
Opening an account is fast and easy – sign up on DigiTrust Page that allows you to plan for, set up and deposit your funds at the click of a button.

3. Cytonn Money Market Fund

Cytonn MMF is a top option with a minimum initial deposit of KES 1,000 and subsequent top ups of KES 100.

More benefits of Cytonn MMF:

Daily interest rates that are compounded on a monthly basis
High interest rates
Easy online application or by dialing *809#

4. Apollo Money Market Fund

If you choose to invest with Apollo MMF, you will need a minimum initial deposit of KES 1,000 and subsequent KES 1,000 top ups.

More benefits of investing with Apollo MMF include:

High interest rates earned daily.
Top ups can be made using direct debit order, direct cash deposits and cheques.

5. Old Mutual Money Market Fund

Old mutual MMF closes the list of superior investor institutions with a minimum initial investment of KES 1,000. The investor company has an equal top up amount of KES 1,000.

Other key features of Old Mutual MMF include:

Easy mobile application by dialing *480#
Withdrawal of yields without penalties or hidden charges
Freedom to change investment between different funds

6. Britam Money Market Fund

You only need a minimum of KES 1,000 to begin your investment journey with Britam MMF. You can top up your investment anytime at a minimum of KES 1,000.

Here are more reasons for considering Britam as your Money Market Fund investment solution:

High liquidity – quick withdrawals processed within 2-3 working days
Easily track your savings online via the app or portal.
Interests are compounded monthly
Quick sign up by dialling *778#

7. Co-op Money Market Fund

The minimum initial investment of Co-op MMF stands at KES 2,000. The fund is invested in interest bearing securities such as T-bills, commercial paper, corporate bonds, fixed deposits and bank calls.

Additional features of Co-op MMF include:

Easy M-pesa deposits allowed
No hidden charges
Quick withdrawals within 3 working days

8. Sanlam Money Market Fund

Sanlam MMF has proven to be an investment powerhouse over the years with a current average annual yield of 9.80% and a minimum initial investment of KES 2,500 with subsequent KES 1,000 top ups.

More features of Sanlam MMF include:

Capital retention
No entry or exit fees
Easy and fast withdrawals

9. Madison Money Market Fund

Madison MMF comes in seventh place with a minimum initial deposit of KES 5,000 with subsequent top ups of not less than KES 1000.

Additional benefits of investing in Madison MMF include:

No restriction on tenor
Withdrawals take 72 working hours
Monthly distribution of interest
No redemption fees

10. Kuza Money Market Fund

Similar to Madison MMF, Kuza MMF has a minimum initial investment of KES 5,000 with a top-up threshold set at KES 1000 or above.

More benefits of choosing to invest in Kuza MMF include:

High interest rates
High liquidity
High annual yield of 10.07 %
Preservation of initial capital

Cytonn Money Market Fund is leading the pack with an 11 percent effective annual rate followed by Etica Money Money Market Fund with 11 percent (similar to Cytonn).

GenAfrica Money Market Fund has an effective annual rate of 10.9 percent while Dry Associates Money Market Fund and Apollo Money Market Fund have 10.8 and 10.6 percent respectively.