List of 19 Money Market Funds with Highest Interest Rates in August 2025
- Money Market Funds (MMFs) in Kenya saw a steady decline in interest rates during the first half of 2025
- Despite the decline, 19 money market funds declared average returns above 10% in August 2025
- Economist Daniel Kathali told TUKO.co.ke that the drop can partly explain the reduced inflation and decreased interest rates on government securities
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Money Market Funds (MMFs) have gained popularity as investment options for many Kenyans.
Source: Getty Images
The funds experienced a steady decline in the interest rates in the fist half of 2025.
However they have made slight recovery compared to the declared rates in the second quarter of the year.
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Why MMF's interest rates dropped
Daniel Kathali, an economist, told TUKO.co.ke that the fall in interest rate can be largely attributed to the drop in inflation and other economic conditions that have stabilised.
"Inflation rates have fallen significantly and the Central Bank of Kenya has lowered the base lending rate to below 10%. The Treasury has also taken steps to lower the interest rates on government securities. Money market funds largely invest in short-term government securities, Treasury bills, which have seen a significant drop in interest rates from the highs of 16% in July 2024 to lows of 9% in August 2025. This has cut on MMF's incomes which may explain the reduction in their interest rates over the last one year," Kathali opined.
Notably, Treasury bills interest rates ranged from 16% for 91-day bills, 16.85% for the 182-day bills and 16.890% for the 364-day bills in July 2024.
The Central Bank of Kenya reported an interest rate of 8.011% for 91-day bills, 8.120% for the 182-day bills and 9.582% for the 364-day bills as of August 14, 2025.
Money Market Funds' interest rates
Below is a list showing the Kenyan shilling money market funds that declared an average interest rate above 10% as of August 19, 2025.
| 1. Cytonn Money Market Fund — 13.22%2. GulfCap Money Market Fund — 13.11%3. Nabo Africa Money Market Fund — 13.04%4. Lofty-Corban Money Market Fund — 12.61%5. Orient Kasha Money Market Fund — 12.25%6. Etica Money Market Fund — 12.03%7. Kuza Money Market Fund — 12.01%8. Arvocap Money Market Fund — 11.85%9. GenAfrica Money Market Fund — 11.24%10. Enwealth Money Market Fund — 11.14%11. Old Mutual Money Market Fund — 11.01%12. Madison Money Market Fund — 10.84%13. Mali Money Market Fund — 10.84%14. Jubilee Money Market Fund — 10.81%15. Britam Money Market Fund — 10.68%16. Faulu Money Market Fund — 10.27%17. Dry Associates Money Market Fund — 10.25%18. Sanlam Money Market Fund — 10.07%19. Apollo Money Market Fund — 10.02 |
Notably, the interest rates change as it is earned and compounded daily.
How do money market funds work?
In an explainer by TUKO.co.ke, financial educator Nelly Mwaniki broke down how MMFs operate, noting that they are popular yet often misunderstood investment option in Kenya.
She explained that MMFs fall under unit trusts regulated by the Capital Markets Authority.
The funds allow investors to pool money through licensed fund managers, with custodians safeguarding funds and trustees ensuring accountability.
The minimum investments range from KSh 100 to KSh 5,000, with flexible top-ups, easy withdrawals, and no exit fees.
Mwaniki emphasised that MMF offer investors a practical entry point into financial growth while encouraging due diligence before committing funds.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
