A data-focused breakdown of yielding trends across CMA-regulated retail funds during the May 2026 easing cycle.
Kenya's money market is sending a clear message in 2026 as we approach the first half of the year; the era of effortless double-digit yields is winding down, but the smart money knows exactly where to look. As the Central Bank of Kenya eased its policy rate for the first time in years, returns across various short-term instruments adjusted accordingly. With a declining Central Bank Rate (CBR) down to 8.75% and headline domestic inflation anchoring firmly at 3.56%, historical double-digit yields are compressing across corporate short-tenor debt instruments and standard sovereign Treasury bills.
The broad-based decline in short-term interest rates reflects structural macroeconomic stabilization in Kenya across 2025 and 2026. As inflation numbers cooled back within the CBK's preferential target bands, sovereign T-bill interest rates shifted downward. For investors holding capital in underperforming traditional banking facilities yielding between 2% and 4%, shifting reserves into registered Collective Investment Schemes (CIS) remains paramount to preserving real-term spending power against remaining currency variables.
Simulate compound monthly payouts under current May 2026 fiscal parameters. Adjust parameters to discover net distributions after statutory deductions.
The comparative data index below showcases effective annual yields (EAR) across active Collective Investment Schemes (CIS) in Kenya. It highlights management structures, entry bars, and expected net outputs after accounting for standard domestic tax deductions:
| Fund Manager & Portfolio Structuring | Gross Yield (EAR) | Net Yield (Post 15% WHT) | Expense Fee | Minimum Entry |
|---|---|---|---|---|
| Nabo Africa Money Market Fund | 13.72% | 11.66% | 2.25% | KES 100,000 |
| Cytonn Money Market Fund | 12.00% | 10.20% | 2.00% | KES 1,000 |
| Etica Money Market Fund | 10.70% | 9.10% | 2.00% | KES 100 |
| Lofty Corban Money Market Fund | 10.63% | 9.04% | 2.00% | KES 1,000 |
| Madison Money Market Fund | 10.44% | 8.87% | 2.00% | KES 5,000 |
| Kuza Money Market Fund | 10.30% | 8.76% | 2.00% | KES 1,000 |
| Britam Money Market Fund | 9.69% | 8.24% | 2.00% | KES 1,000 |
| Sanlam Allianz Money Market Fund | 8.78% | 7.46% | 2.00% | KES 2,500 |
| CIC Money Market Fund | 8.43% | 7.17% | 2.00% | KES 5,000 |
Unlike fixed tenure banking receipts, interest metrics on registered MMF setups compound daily and distribute monthly. Because these positions remain variable and track direct sovereign auctions, immediate point-in-time rates reflect shifting market data rather than permanently guaranteed allocations.
A standard 15% statutory Withholding Tax (WHT) is collected directly at source on monthly interest earnings by your fund provider, simplifying accounting setups for private individuals and corporate entities.
Connect with an Infinity Wealth consultant to align your short-term reserves or institutional cash balances with target yield opportunities across the market.
