10 March 2026
Which money market fund pays the most in Kenya? We compare Nabo, CIC, Sanlam Allianz, GenAfrica and more by net return after fees, minimum investment, and withdrawal speed. Honest May 2026 guide — updated for the new interest rate environment.
⚠️ Important 2026 Market Update — Read This First
The returns landscape for Kenyan money market funds has shifted materially since 2025. The article you may have read elsewhere quoting “10–14% returns” is now partially outdated.
Here’s why: The CBK entered a rate-cutting cycle in early 2026, reducing the policy rate from 9.0% in January to 8.75% in February. Treasury bill yields have declined as a result. The market average across 28 tracked KES money market funds as of April 2026 is now 8.95% gross (7.61% after 15% withholding tax). Top-performing funds are still delivering above 10% gross — but the days of most funds sitting comfortably at 12–14% are ending.
What this means for you:
- MMFs still beat bank savings accounts (3–4%) by a wide margin — the case for switching is unchanged
- Fund selection now matters more than it did in 2025, when most funds were delivering similar results
- The best funds are actively managing portfolios to lock in higher rates before further cuts take hold
- Yields will likely continue drifting lower through 2026 as the CBK eases further
The guidance below reflects April/May 2026 data — the most current available.
Your Bank Savings Account Is Still Costing You
Even at lower MMF returns, the gap versus bank savings remains substantial:
Ksh 50,000 in bank savings: Earns Ksh 1,500–2,000/year (3–4%) Ksh 50,000 in a top MMF (9.78% net after tax):Earns Ksh 4,890/year Annual cost of not switching: Ksh 2,890–3,390 lost
For Ksh 100,000:
Bank savings: Ksh 3,000–4,000/year Top MMF: Ksh 9,780/year Lost interest: Ksh 5,780–6,780/year
The math still strongly favours MMFs — just with more realistic numbers than were being quoted in 2025.
What Is a Money Market Fund?
A money market fund (MMF) is a pool of money from many investors, managed by a licensed professional fund manager who invests in ultra-safe, short-term instruments that earn interest.
Where your money goes:
Government Treasury Bills (typically 40–80% of fund): The government borrows for 91, 182, or 364 days at 10–12% interest. Near zero default risk.
Bank Fixed Deposits (10–40%): The fund places money with banks at negotiated bulk rates — higher than what retail customers get. Major banks only (KCB, Equity, COOP etc.).
Commercial Paper (5–20%): Short-term debt from solid companies (Safaricom, EABL etc.). Slightly higher risk, higher return.
Key facts in 2026:
- Market average gross yield: ~8.95% (top funds: 10–11.5%)
- After 15% withholding tax, market average net: ~7.61% (top funds: 8.5–9.78%)
- Withdrawal time: 1–3 business days
- Total AUM in Kenya’s CIS industry: now exceeds KES 680 billion
- Regulated by: Capital Markets Authority (CMA)
- Minimum investment: Ksh 100–5,000 depending on fund
Best Money Market Funds Kenya 2026: After-Fee, After-Tax Comparison
The table nobody else publishes clearly. Every MMF advertises gross returns. We show what you actually earn after management fees and after 15% withholding tax.
Data source: Fund fact sheets, CMA Kenya, April/May 2026. Returns ranked by net-of-fee yield.
| Fund | Gross Return | Mgmt Fee | Net (after fee) | After 15% WHT | Min Investment | Withdrawal | M-Pesa |
|---|---|---|---|---|---|---|---|
| Nabo Africa MMF | 11.51% | ~1.5% | ~10.01% | 9.78% | Ksh 5,000 | 2–3 days | ✅ Yes |
| Cytonn MMF | ~11.05% | 2.5% | ~8.55% | ~9.39%* | Ksh 1,000 | 3–5 days | ⚠️ See note |
| GenAfrica MMF | ~10.5% | 1.7% | ~8.8% | ~8.0% | Ksh 1,000 | 1–3 days | ✅ Yes |
| CIC MMF | ~10.2% | 1.5% | ~8.7% | ~7.9% | Ksh 1,000 | 1–2 days | ✅ Yes |
| Sanlam Allianz MMF | ~10.5% | 2.0% | ~8.5% | ~7.7% | Ksh 1,000 | 2–3 days | ✅ Yes |
| ICEA Lion MMF | ~9.8% | 1.8% | ~8.0% | ~7.3% | Ksh 1,000 | 2–3 days | ✅ Yes |
| Old Mutual MMF | ~9.5% | 1.6% | ~7.9% | ~7.2% | Ksh 1,000 | 2–3 days | ❌ No |
Cytonn’s after-tax figure of 9.39% is from February 2026 data — see important note in Cytonn section below.
Key insights from the table:
The ranking has changed significantly from 2025. Nabo Africa is now the clear leader on verified net returns — its strategy of targeting fixed deposits with non-tier-1 banks and locking in longer tenors (average ~13 months) is paying off as rates fall. GenAfrica and CIC remain solid middle-ground options. Sanlam Allianz (formerly Sanlam) has grown to become one of the largest funds by AUM, now rivalling CIC in size.
What Ksh 50,000 Actually Earns Now (After Fees, After Tax)
Nabo Africa MMF (9.78% net after tax):
- Annual interest: Ksh 4,890
- Monthly: ~Ksh 408
CIC MMF (~7.9% net after tax):
- Annual interest: Ksh 3,950
- Monthly: ~Ksh 329
Bank Savings Account (~3.5% gross, 3.0% after tax):
- Annual interest: Ksh 1,500
- Monthly: ~Ksh 125
Difference: Even the average MMF earns Ksh 2,000–3,000 more per year than a bank savings account on Ksh 50,000. The best-performing funds earn over Ksh 3,000 more.
Nabo Africa MMF — The 2026 Leader
Nabo Africa has moved from a mid-table fund to the top performer in Kenya’s MMF market in 2026 — and the reason is deliberate portfolio strategy, not luck.
Current performance (April 2026):
- Gross return: 11.51% (highest among major funds)
- After 15% WHT: 9.78% net (best on the market)
- Minimum investment: Ksh 5,000
Why Nabo is leading:
Nabo deliberately targets fixed deposits with non-tier-1 banks and non-bank financial institutions — instruments that pay a premium over standard T-bill yields because larger funds won’t touch them at scale. Its weighted average portfolio tenor of approximately 13 months reflects a deliberate play to lock in today’s higher rates before the CBK’s easing cycle drags yields lower across the board.
The one trade-off: Slightly higher minimum (Ksh 5,000 vs Ksh 1,000 elsewhere) and 2–3 day withdrawal processing. For investors with Ksh 5,000 or more to invest and no need for same-day access, Nabo is the strongest risk-adjusted case in the market right now.
Best for: Investors optimising for highest verified net returns who can meet the Ksh 5,000 minimum.
CIC Money Market Fund — Still the Most Trusted
CIC remains Kenya’s most established MMF, backed by the cooperative movement and CIC Insurance. While it is no longer the top-yielding fund, it retains clear advantages in speed and scale.
Current performance:
- Gross return: ~10.2%
- Net after tax: ~7.9%
- Fund size: one of Kenya’s two largest funds by AUM
- Withdrawal time: 1–2 days (fastest on the market)
What still sets CIC apart:
Fastest withdrawals — consistently 1–2 business days, rarely exceeding this. For money you may need quickly, this matters. Conservative management — 75–80% in government T-Bills. Lower risk means returns have dropped further than peers in the rate-cutting environment, but the trade-off is stability. Deep cooperative roots — natural fit for SACCO members, farmers, teacher unions, and anyone in the co-operative ecosystem.
How to invest in CIC MMF: Download the CIC Asset Management app (Android or iOS) or visit cic.co.ke. Register with your National ID and KRA PIN (3–5 minutes). Complete KYC (ID photo, selfie — approved within 24 hours). Deposit via M-Pesa Paybill 222111, account number = your registered phone number. Minimum initial deposit: Ksh 1,000.
Best for: First-time MMF investors, SACCO members, anyone needing fastest possible withdrawals.
Sanlam Allianz MMF — Now One of Kenya’s Largest Funds
Note on the name change: The fund previously known as Sanlam Investment Management is now Sanlam Allianz, following the completion of Allianz Group’s strategic partnership with Sanlam across Africa. The fund’s operations, management, and regulatory standing are unchanged.
Current performance:
- Gross return: ~10.5%
- Net after tax: ~7.7%
- Fund size: now rivals CIC as one of Kenya’s two largest MMFs by AUM
Sanlam Allianz’s higher fee (2.0%) continues to eat into net returns relative to CIC. After fees and tax, it delivers slightly less than CIC despite a higher gross yield. The fund’s main advantages remain its strong institutional backing and well-designed mobile platform.
Best for: Investors who prefer internationally-backed brands and a polished digital experience.
GenAfrica MMF — Still a Strong Middle-Ground Choice
GenAfrica was the net-return leader in 2025. In 2026, Nabo has taken that crown, but GenAfrica remains a solid option — better net returns than CIC and Sanlam Allianz, with a good mobile platform and moderate fees.
Current performance:
- Gross return: ~10.5%
- Net after tax: ~8.0%
- Fund size: growing fast (assets nearly doubled 2024–2025)
Best for: Tech-savvy investors wanting above-average net returns with a good app experience and no elevated minimum.
Cytonn MMF — The High-Yield, High-Scrutiny Option
Important clarification (the article’s original framing needs updating):
The original statutory management issue applied to Cytonn Investments Management Plc — the parent group. The Cytonn Money Market Fund is a product of Cytonn Asset Managers Limited (CAML), a separately licensed and CMA-regulated entity. The MMF has continued operating under CMA oversight throughout the group-level difficulties.
However, investors should be aware of the broader context: Cytonn High Yield Solutions and Cytonn Real Estate — separate products from the parent group — have been placed in liquidation, with a debt repayment plan running 2025–2028. This does not directly affect the MMF, whose assets are held with a separate custodian, but it does reflect on the group’s overall position.
Current MMF performance:
- Gross return: ~11.05% (February 2026 data — one of the highest)
- Net after 15% WHT: ~9.39%
- Minimum investment: Ksh 1,000
- Withdrawal: 3–5 days (slowest of the major funds)
- Portfolio: 64% in fixed and demand deposits, only 10.5% in government securities — a more aggressive composition than peers
Our honest assessment:
The Cytonn MMF itself is CMA-regulated and has continued operating. The returns are competitive. But the 64% concentration in bank deposits (rather than T-bills), the slower withdrawals, and the group-level liquidation proceedings affecting related entities are all factors worth weighing carefully. For new investors, the 0.5–1% yield advantage over Nabo or GenAfrica may not compensate for this complexity. For existing Cytonn MMF investors whose withdrawals are processing normally, the asset separation provides meaningful protection.
Always verify the current CMA status at cma.or.ke before investing.
MMF vs SACCO vs Bank vs Treasury Bills — 2026 Comparison
| Option | Typical Net Return (after tax) | Liquidity | Min. | Safety | Best For |
|---|---|---|---|---|---|
| Bank Savings | 2.5–3.5% | Instant | Ksh 0 | Very High (KDIC Ksh 500K) | Same-day emergency fund |
| Money Market Fund | 7.5–9.8% | 1–3 days | Ksh 1,000 | High (CMA regulated) | Short–medium savings |
| SACCO Deposits | 8–14% | Limited | Ksh 500/month | High (SASRA) | Long-term disciplined saving |
| Treasury Bills (91-day) | 8–10% | Locked 91 days | Ksh 50,000 | Absolute (Gov’t) | Set-and-forget savings |
| M-Shwari Lock Savings | 5–6% | Locked 1–6 months | Ksh 100 | High (Bank-backed) | Forced short-term saving |
The 2026 Rate Environment — What It Means for Your Strategy
This is new context the original article did not cover and every MMF investor in Kenya needs to understand.
The CBK is in an active rate-cutting cycle. The policy rate fell from 13.0% in early 2024 to 8.75% by early 2026 — a 425 basis point reduction. Treasury bill rates have followed. This has two direct effects on MMFs:
Effect 1 — Returns will keep falling. Most analysts expect the market average to drift below 9% gross and possibly below 8% gross if the CBK cuts further in H2 2026. The funds managing this best are those that have locked in longer-tenor instruments now (Nabo’s strategy).
Effect 2 — Fund selection matters more than ever. When all funds were delivering 12–14%, choosing between them was almost academic. Now, with a 2–3 percentage point spread between top and bottom performers, picking the right fund meaningfully changes what you earn.
What to do: If you’re in a bottom-quartile fund earning below the 8.95% market average, now is a good time to review. Verify your fund’s current yield at cma.or.ke or serrarigroup.com/ke/mmf which tracks daily MMF yields across all 28 funds.
New CMA Regulatory Changes — December 2026 Deadline
Two significant regulatory changes are coming into force by December 11, 2026:
Paid-up capital requirements doubled to KES 20 million. This raises the barrier to entry and will push undercapitalised fund managers toward consolidation or exit from the market. Investors in smaller, newer funds should check that their fund manager meets the new threshold.
Monthly reporting now mandatory. Previously, quarterly reporting was required. Monthly reporting means fund performance data will be fresher and underperforming or high-risk portfolios will surface faster. This is broadly good for investors.
Action: If your fund manager is smaller or newer, verify their CMA compliance status at cma.or.ke as the December deadline approaches.
Tax on Money Market Fund Returns
All MMF returns in Kenya are subject to 15% withholding tax on interest income, deducted automatically before crediting your account. No filing required for most Kenyans.
| Example: Ksh 100,000 at 10.0% gross | |
|---|---|
| Gross interest | Ksh 10,000 |
| 15% withholding tax | Ksh 1,500 |
| Net interest received | Ksh 8,500 |
| Effective net return | 8.5% |
This is the same tax treatment as bank savings and Treasury Bills — MMFs are not disadvantaged.
Our 2026 Recommendations
For highest net returns: Nabo Africa MMF (9.78% net after tax, minimum Ksh 5,000)
For fastest withdrawals + established fund: CIC MMF (1–2 days, Ksh 1,000 minimum)
For good balance of returns and platform: GenAfrica MMF (8.0% net after tax, Ksh 1,000 minimum)
For largest institutional backing: Sanlam Allianz MMF (7.7% net after tax, Ksh 1,000 minimum)
Avoid for new investments: Funds delivering below the 8.95% market average — check your fund’s current yield at serrarigroup.com/ke/mmf.
Your Action Plan This Week:
Choose a fund from the list above. Download the app (Nabo, GenAfrica, or CIC). Register with National ID + KRA PIN — 5 minutes. Deposit Ksh 5,000–10,000 as a test. Withdraw Ksh 1,000 after one week to confirm the process works. Then move larger amounts from your bank savings account.
FAQ
Q: Which money market fund has the highest return in Kenya in 2026?
Nabo Africa MMF leads with a gross return of 11.51% and net after-tax return of 9.78% as of April 2026. This is a change from 2025 when GenAfrica held the top spot. Returns should be verified regularly at cma.or.ke as the rate environment continues shifting.
Q: Is my money safe in a money market fund?
Very safe, but not guaranteed like bank deposits. MMFs are CMA-regulated, and your money is held in a separate custodian account that even the fund manager cannot access for their own use. No Kenyan MMF has lost investor principal in the 15+ year history of the industry. The main current risk to monitor is the 2026 CMA regulatory changes — verify your fund manager’s compliance status as the December deadline approaches.
Q: What happened to the 12–14% returns?
The CBK’s rate-cutting cycle has brought average MMF yields down from 12–14% in 2025 to approximately 9% market average in early 2026. Top funds like Nabo are still delivering above 10% gross by actively managing portfolio composition. Most analysts expect yields to continue declining gradually through 2026.
Q: Is the Cytonn MMF safe?
The Cytonn Money Market Fund is operated by Cytonn Asset Managers Limited, a separately CMA-licensed entity, and your MMF assets are held with a custodian separate from the parent group. The parent group’s High Yield Solutions and Real Estate products are in liquidation — these are different products. The MMF has continued operating. Verify the current CMA status at cma.or.ke before investing.
Q: How do I withdraw from a money market fund?
Log into the fund’s app, select “Redeem” or “Withdraw,” enter amount, choose M-Pesa or bank destination, and confirm. CIC processes in 1–2 business days, most others in 2–3 business days. No penalties, no fees, no lock-in.
Returns as of April/May 2026. Market average data: Vasili Africa Kenya MMF April 2026 Report. Fund-specific data: CMA Kenya, individual fund fact sheets. Returns change daily — verify current yields at cma.or.ke or serrarigroup.com/ke/mmf before investing. This article is for educational purposes only and does not constitute financial advice.
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Stop losing Ksh 4,000-10,000/year to low bank interest. Start earning 10-14% in a money market fund this week.