Are you looking for ways to make passive income in Kenya? you have probably heard about the money market fund. The money market fund is becoming very popular in Kenya for various reasons including Security, reliability, liquidity and good regulation. But what exactly is it? Can the money market funds help me grow my money in Kenya? Or perhaps you are wondering if you can use the money market fund as emergency fund. You might also be planning to invest in the money market fund to build a fund to buy an asset, a car or a house. Our experienced money market fund specialists will take you through everything you should know about the money market fund in Kenya. 

Structure of Money Market Fund in Kenya.

The Money Market fund in Kenya has a very solid structure of operations. It has four key institutions that form its operations structure, these are; Fund Manager-Trustee- Custodian- Auditors

  1. Fund Manager: – This is the company in charge of the management of the funds by implementing sound investment decisions of the mutual funds. The Fund Manager has qualified investment professionals that conduct market research and make the investment decisions.
  2. Trustee: A bank or financial institution responsible in monitoring the operations of the Fund Manager and ensuring they fully comply with the regulatory guidelines. Trustee is also responsible in ensuring the Fund manager has personnel’s with the right qualifications.
  3.  Custodian: The custodian is the bank that keeps the investment funds, safeguards the funds and keeps records of the different trade settlements. Note the Fund manager doesn’t have access to the funds but only directs the Custodian on settlements of different investments and withdrawals with the oversight of the trustee.
  4. Auditors: The auditor ensures accuracy of the financial records reported and tax compliance by the fund managers. They also help in detecting any fraud or misrepresentation of facts in line to ensuring the clients funds are safe and invested correctly.

Why Chose Money Market Fund (MMF)

This is a low risk fund suitable for investors who are looking for;

  • A guarantee of Capital preservation.
  • A high degree of capital stability.
  • A safe custody for your savings while earning interest
  • A great avenue for accumulating and keeping an emergency Fund
  • A perfect opportunity for accumulating funds toward a future project
  • A safe opportunity for custody of a lump sum fund

How is Money Market Fund better than other investments?

  • The fund is Regulated by The Capital Market Authority (CMA)
  • It offers Competitive Returns; Interest earned is compounded at the end of every month.
  • Liquidity: Your Money is not fixed, you are able to withdraw the funds at a short notice. Upon withdrawal request, the money is credited to your bank account within 2-3 working days.
  • Flexibility: This fund allows you to save in flexible options, either by depositing a lump sum amount or building up a fund through regular top-ups.
  • Security: It Invests in Low Risk instruments. The primary investments are Government Treasury Bills, Fixed deposits, Call deposits and high credit rated Commercial papers.
  • Professional management: you benefit from the proficiency of Fund Managers who have great knowledge on investment markets
  • Transparency – you get monthly statement shared on email while the interest rates are published in the newspapers every Tuesday to Saturday
  • The minimum initial investment is as low as Kshs 5,000 and minimum top up Kshs 1,000. No Maximum Limit

The average annual rate of interest is 12% P.A and may change slightly with the market dynamics. Note No Initial Fee Charged to open a money market fund account.

How to Invest in the Money Market Fund

Have with you all the required identification documents, which include;

  • For Individuals: ID Copy both sides, KRA Pin Certificate,  Passport/Selfie photo, proof of bank details (ATM/Statement),
  • For Corporate to include the above documents for the signatories, Certificate of Registration for the company and a Board Resolution to invest or extract of minutes showing decision to invest.
  • Fill the relevant investment application form from the below attachments or individuals can follow the link provided below this page.
  • Submit the form to us or submit online for verification and registration
  • A unique member number is allocated to your application after approval and sent via email and SMS after which you can start your investment as guided on the welcome letter.

Who can invest in Money Market Fund?

  • Any individual above 18 years, friends, joint partner’s, Chama’s or legal entity with a Pin  can invest in the money market fund. A sample of clients in our records include;
    • Individuals
    • Sacco’s
    • Schools
    • Chama’s
    • Joint Members
    • Churches
    • Welfare Groups
    • Corporate Entities
    • Professional Associations

Opening a CIC Money Market Fund account online

Money market Fund application forms

CIC Money Market Application Form Individual CIC Money Market Application Form Individual
CIC Joint Money Market Fund Application Form CIC Joint Money Market Fund Application Form
CIC Corporate Money Market Fund Application Form CIC Corporate Money Market Fund Application Form
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