Top 10 Money Market Funds In Kenya As Of August 13

The 3-month bank placements ended the week at 7.7 percent while the yield on the 91-day T-bill increased by 1.4 bps to 6.5 percent.

The average yield of the Top 5 Money Market Funds declined marginally by 0.1 percentage points to 9.8 percent, from the 9.9 percent recorded the previous week.

At the same time, the yield on the Cytonn Money Market Fund declined by 0.2 percentage points to 10.5 percent from 10.7 percent recorded last week.

Here are the top Money Market Funds in Kenya:

1. Cytonn Money Market Fund
2. Nabo Africa Money Market Fund
3. Zimele Money Market Fund
4. Madison Money Market Fund
5. CIC Money Market Fund
6. Sanlam Money Market Fund
7. Co-op Bank Money Market Fund
8. GenCap Hela Imara Money Market Fund
9. Dry Associates Money Market Fund
10. Orient Kasha Money Market Fund

During the week, liquidity in the money markets eased further, with the average interbank rate declining by 0.5 percent points to 2.8 percent from 3.2 percent recorded the previous week.

This was attributed to government payments, including term auction deposits maturities of 74.5 billion shillings which offset the settlements of government securities and tax remittances.

The average interbank volumes increased by 31.7 percent to 13.1 billion shillings, from 9.9 billion shillings recorded the previous week.

Rates in the fixed income market have remained relatively stable due to the high liquidity in the money markets, coupled with the discipline by the government as they reject expensive bids.

The government is 79.1 percent ahead of its prorated borrowing target of 88.6 billion shillings having borrowed 158.8 billion shillings in FY’2021/2022.

“We expect a gradual economic recovery going into FY’2021/2022 as evidenced by KRA collecting 1.7 trillion shillings in FY’2020/2021, a 3.9 percent increase from 1.6 trillion shillings collected in the prior fiscal year,” said experts from Cytonn.

However, despite the projected high budget deficit of 7.5 percent and the lower credit rating from S&P Global to ‘B’ from ‘B+’, we believe that the monetary support from the IMF and World Bank will mean that the interest rate environment may stabilize since the government will not be desperate for cash.

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