In today’s high-inflation environment, where traditional savings accounts are losing their shine, Kenyan investors are increasingly turning to money market funds (MMFs) for both security and higher returns. With bank deposit rates hovering around 6.5–7%, many savers are seeking alternatives that balance capital preservation, liquidity, and income generation.
This is where the Old Mutual Kenya Shilling Money Market Fund (OMMMF) steps in. Backed by Old Mutual Investment Group, one of the oldest and most trusted asset managers in the region, this fund has built a reputation for delivering competitive yields, low risk, and easy accessibility, especially for retail investors who want to see their money grow without sacrificing liquidity.
Overview of the Old Mutual Money Market Fund
Launched in March 2003, the Old Mutual Money Market Fund is a low-risk, conservative investment vehicle with low management fees designed to help investors earn stable returns while keeping their capital safe. The fund invests primarily in Treasury bills, corporate bonds, call deposits, and certificates of deposit, ensuring a diversified portfolio of short-term, high-quality instruments.
FUND DETAILS
| Fund Size (Jan 2024) | KES 9.83 billion |
| Annual Effective Yield | 13.13% |
| Risk Profile | Low (Conservative) |
| Initial Fee | Nil |
| Minimum Investment | KES 1,000 |
| Top-up Amount | KES 1,000 |
| Service Fee | 2% p.a. + VAT |
| Benchmark | Average commercial bank deposit rate (approx. 7.86%) |
| Currency | Kenyan Shilling (KES) |
This positions the OMMMF as a strong contender for investors seeking better-than-bank returns while avoiding the volatility of equities or long-term bonds.
Features and Benefits
1.Liquidity
One of the fund’s biggest selling points is its accessibility. Investors can redeem funds in real time via M-Pesa through I-Invest, while manual withdrawals take 2–5 working days. This makes it suitable for both emergency savings and short-term investment goals.
2. Low Risk & Capital Preservation
The fund is focused on preserving capital and minimizing investment risk. It primarily invests in high-quality, short-term debt securities.
3. Stable & Competitive Returns
The Fund invests in selected money market instruments providing an income yield and a high degree of capital stability. With an annualized yield of 13.13%, the Old Mutual Money Market Fund outpaces average bank deposit rates nearly twofold.
While slightly lower than the top-yielding MMFs in Kenya, it provides a strong balance between safety and performance.
4. Accessibility for Small Investors
With a minimum entry of just KES 1,000, the fund is highly accessible to young professionals, students, and groups such as chamas and investment clubs.
5. No Initial Fees
Investors enjoy zero upfront charges, though a 2% annual management fee (plus VAT) applies, deducted directly from returns.
User Experience & Accessibility
Old Mutual has invested in digital infrastructure to ensure a seamless user experience.
Sign-up: Can be completed via *480# USSD, Old Mutual’s I-Invest app, or through financial advisors.
Deposits: Accepted via M-Pesa, bank transfer, or standing orders.
Withdrawals: Near-instant for digital users, making it a strong emergency fund option, while manual withdrawals take 2–5 working days.
Information Access: Daily pricing updates are available in newspapers and on Old Mutual’s website.
The fund’s simplicity and digital-first approach make it particularly attractive to younger, tech-savvy investors who value convenience.
Performance & Market Context
As of January 2024, the OMMMF recorded a 13.13% annual effective yield, compared to a 7.86% average bank deposit rate. This nearly 6% premium over savings accounts is a major draw for retail investors.
However, Treasury Bill yields in Kenya have recently spiked above 16%, reflecting high government borrowing. While this creates opportunities for MMFs to capture higher returns, it also means competition among funds is fierce, with some rival funds posting slightly higher yields.
Still, the OMMMF has demonstrated consistency, with 24 consecutive months of positive returns, a record that reassures risk-averse savers.
Real-World Use Cases
Young Professionals – A 25-year-old Nairobi-based graduate can start investing with just KES 1,000 via M-Pesa, using the fund as both an emergency buffer and a way to grow savings faster than in a traditional bank account.
Chamas and Investment Groups – With flexible top-ups and immediate liquidity, community savings groups use the fund to park idle cash while awaiting investment opportunities.
Parents Saving for Fees – Families can deposit termly savings and withdraw seamlessly when school fees are due, earning interest in the meantime.
Security and Oversight
Fund Manager: Old Mutual Investment Group (Kenya)
Custodian & Trustee: KCB Bank Kenya Limited
Auditors: PwC
Regulator: Capital Markets Authority (CMA)
This layered structure ensures investor protection, independent oversight, and transparency, reducing risks of mismanagement.
Pros and Cons
Pros
Competitive yields (13.13%) above bank deposits
Low entry point (KES 1,000)
Near-instant withdrawals via M-Pesa
24/24 positive return months (last 2 years)
Backed by Old Mutual’s global reputation
Cons
Service fee (2% + VAT) slightly higher than some rivals
Yield lower than top competitors like Cytonn MMF
Returns subject to withholding tax
Inflation risks may erode real gains if rates rise further
Verdict and Ratings
Affordability: ★★★★★ (KES 1,000 entry point is highly accessible)
Reliability: ★★★★★ (Strong governance and 20+ year track record)
Innovation: ★★★★☆ (M-Pesa integration is excellent, though rivals offer similar features)
Usability: ★★★★★ (Easy to invest, top up, and withdraw)
Overall Rating: 4.7/5
The Old Mutual Money Market Fund is a top-tier option for conservative investors seeking a safe, flexible, and rewarding place to grow their money.
Key Takeaway
For young investors, parents, and chamas looking for a balance between liquidity, safety, and attractive returns, the Old Mutual Kenya Shilling Money Market Fund is one of the best entry-level investment products available in Kenya.
If you are saving for a short-term project, emergency fund, or simply want a better alternative to a savings account, this fund is worth serious consideration.
Frequently Asked Questions (FAQs)
1. What is the minimum investment for the Old Mutual Money Market Fund?
You can start with as little as KES 1,000, making it very accessible.
2. How do I withdraw my money?
Withdrawals can be made via M-Pesa (real-time for digital users) or bank transfer (2–5 working days).
3. Is the Old Mutual MMF safe?
Yes. The fund is regulated by the Capital Markets Authority (CMA), with assets held by KCB Bank as custodian.
4. How much return can I expect?
As of January 2024, the annual effective yield was 13.13% but returns vary depending on market conditions.
5. How does it compare to bank savings?
The fund typically offers almost double the yield of average bank deposit rates, making it a more rewarding savings option.
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