CMA lists top money market funds as Kenyans pick interest

On Friday, the Capital Markets Authority released the latest report on the leading Money Market Funds (MMFs) by total assets under management (AUM) in Kenya.

The investment portfolio has attracted the attention of many young Kenyans, especially Gen Zs, with studies indicating that it will grow by 56 per cent this year.

The MMFs, which are a type of mutual fund that pool money and then invest it in short-term, high-quality securities like treasury bills, bank deposits and corporate commercial paper, are particularly appealing because they offer liquidity and stability.

Compared to regular bank accounts, MMFs offer higher returns than bank deposits.

While releasing the Collective Investment Schemes (CIS) Quarterly Report, CMA revealed that the CIC Money Market Fund was the biggest MMF, recording the highest figure of total assets under management (AUM) at Sh81.8 billion. This represented a 25.6 per cent market share.

It offers an interest of 12.29 per cent, with an effective annual rate of 13.00 per cent. The highest yield over the past year was 12.91 per cent, while the lowest was 11.19 per cent.

Second on the list was Sanlam Money Market Fund at Sh72.2 billion, representing 22.6 per cent market share.

It is currently offering 14.81 per cent per annum for a one-year period, according to Sanlam Investments East Africa. For a three-year period, the rate is 11.83 per cent per annum, and for a five-year period, it is 10.83 per cent per annum.

The ICEA Lion Money Market Fund is at Sh20.1 billion, having a 6.3 per cent market share. It currently offers an investment yield of approximately 11.81 per cent on average.

This is a nominal yield, meaning it's before any management fees or taxes are deducted.

At the Nairobi Securities Exchange (NSE), Home Afrika Limited, a Kenyan real estate developer, posted a net profit of Sh133.5 million, reversing a Sh28 million loss in 2023.

This profit was driven by a 107 per cent increase in revenue to Sh781.9 million.

The company's focus remains on reducing debt, improving liquidity, and eventually reversing its negative equity position.

This has seen the firm’s share price at the NSE maintain gains in the past one month, closing the week ended June 6 at 0.67, having gained 8.06 per cent. Other gainers were Uchumi Supermarket and Liberty Kenya.

The listing trading of Sanlam Kenya’s new shares started on a fall at the NSE, with the share price dropping almost by 10 per cent to Sh6.62 on Friday after surging to a post-rights issue announcement high of Sh10.35.

Last week, it announced raising Sh2.5 billion in a cash call that saw 100 per cent subscription. Investors took up to 82 per cent of the rights, with underwriters filling the remaining gap.

The rights issue was priced at Sh5 per share, allowing shareholders to purchase 125 new shares for every 36 held. A total of 500 million new shares were offered.

This saw its share price at the NSE rally to Sh7.04, recording a 2.9 per cent gain over its previous closing price of Sh6.84.

Market analysts are now fearing that it could inch closer to the rights offer price of Sh5, advising a sell.

Overall, activities at the Nairobi bourse increased during the week, with the NASI, NSE 25, and NSE 20 share price indices increasing by 0.73 per cent, 1.27 per cent and 1.46 per cent, respectively, during the week ending June 5, 2025.

Market capitalisation and total shares traded increased by 1.47 per cent and 4.27 per cent, respectively, while equity turnover decreased by 16.02 per cent.