Money Market Funds (MMFs) remain the most preferred investment option among Kenyans, accounting for 62.5 per cent of the shares under Collective Investment Scheme (CIS) assets under management.

Data from the Capital Markets Authority (CMA) shows that Special Funds rank second with a 19 per cent share of CIS assets. These are pooled investment schemes formed by investors with a common goal and typically offer higher returns than MMFs.

Fixed Income Funds take the third spot, holding 18 per cent of total assets under management, and are considered medium-to-low risk investments focused on diversified bonds.

Most Kenyans continue to prefer Money Market Funds (MMFs) because they offer a safe, low-risk way to invest while still earning competitive returns.

Unlike high-risk investment products such as equities or speculative ventures, MMFs focus on short-term, interest-bearing instruments like treasury bills, government bonds, and high-quality commercial papers. This stability makes them attractive, especially in an unpredictable economic environment where safeguarding capital is a priority.

Liquidity is another key reason for their popularity. MMFs allow investors to access their money quickly — in many cases within 24 to 48 hours — without losing accrued interest.

This flexibility appeals to individuals who want to save and invest without locking away their funds for long periods, making MMFs suitable for both emergency savings and short-term investment goals.

Additionally, MMFs provide better returns compared to traditional savings accounts while maintaining relatively low volatility. For many Kenyans facing rising costs of living, the ability to earn higher interest without exposing their money to significant market swings is a strong incentive.

The ease of entry into MMFs has also fueled their growth. Many investment firms and banks offer digital onboarding, allowing customers to open accounts and track their investments via mobile apps or online platforms. This convenience, combined with the funds’ low minimum investment requirements, makes MMFs accessible to a wide range of income earners.

Lastly, the credibility of MMFs is reinforced by regulation under the Capital Markets Authority (CMA), which ensures transparency, proper management, and investor protection. This regulatory oversight gives Kenyans confidence that their investments are being handled prudently, further cementing MMFs as a go-to investment choice.

In its second-quarter CIS report released on Thursday, August 14, CMA listed the most popular MMFs between April and June this year.

Sanlam Unit Trust retained its top position with a 19.1 per cent market share and Assets Under Management (AUM) of KSh 113 billion. CIC Unit Trust came second with a 15.7 per cent share and AUM of KSh 93 billion, while Standard Investment Unit Trust ranked third at 12.9 per cent with KSh 77 billion in AUM.

NCBA Unit Trust and Britam Trust Schemes maintained their fourth and fifth spots with market shares of 9.5 per cent and 6.9 per cent, and AUM of KSh 56 billion and KSh 41 billion, respectively.

Absa Unit Trust Fund followed in sixth place with a 4.3 per cent share and KSh 25 billion in AUM, while Old Mutual Unit Trust Scheme came seventh with 3.9 per cent and KSh 23 billion in AUM.

ICEA and Coop Unit Trusts were ranked eighth and ninth with market shares of 3.8 per cent and 3.6 per cent, respectively. KCB Unit Trust closed the top ten list, with other notable mentions in the top 20 including Jubilee, Etica, Madison, Ziidi, Nabo Africa Funds, Dry Associates, Faida, Stanbic, Lofty, Zimele, and Apollo Unit Trust Funds.

CMA reported that the total cumulative Assets Under Management for the period stood at KSh 596.3 billion — a 20 per cent increase from the first quarter of 2025.