Your money market fund is not your friend or your enemy. It’s just a number. And right now those numbers are spread wider than most people realise.
Top of the table: Nabo Africa, 13.29%. Bottom: Equity, 5.10%. Same risk profile, same “park your cash” promise, more than double the payout depending on where you sat.
Run it on KES 500,000 for a year, net of fees and 15% tax: the top fund pays you around 11.30%, the bottom around 4.34%. That’s roughly KES 35,000 versus KES 21,700. Same money, different decision, KES 13,000 gone to nowhere.
Here’s the part I’d actually circle. Inflation is near 6.7%. Look at the last column. Eight of these funds now post a negative real return, Equity at -2.37%, Stanbic at -2.22%. Your balance still grows on the app. It just buys less bread each month.
And the whole market is drifting down. The average dipped to 9.06% from 9.10% in two weeks as T-bill rates keep falling. This isn’t one bad fund. It’s the tide.
I’m not saying chase the top line blindly, liquidity and fees matter too. But if your fund is paying you 5 to 6%, you’re paying it to lose you money slowly.
Full June 13 ranking below. Where does yours land?
#MMF #KenyaInvesting