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The African Alliance Kenya Money Market Fund (AAKMF), previously the African Alliance Kenya Shillings Fund or AA Kenya Shillings Fund, has been one of the fastest-growing money market funds since its inception in 2015. Its yield rate has been impressive and is an attraction for investors.
As of 10th February 2023, AA Kenya Shillings Fund had an effective annual yield rate of 14.2%. If you go back to 2021, the yield rate was about 5.67% as of 7th May.
I’ll share more about that when discussing the performance of the money market fund over the years. What’s important to note now is that the money market fund’s growth has been steady, and that’s what matters.
Investment-wise, you may need Ksh 100,000 (lump sum) to join the African Alliance Kenya Money Market Fund. But unlike most money market funds in the country, there aren’t minimum top-up limits.
Of course, there are many other advantages of the money market fund that I’ll share with you, as well as a few downsides you should be wary of.
But first, here are our highlights:
- What is the AA Kenya Shillings Fund?
- How does the AA Kenya Money Market Fund work?
- Why invest in AA Kenya Money Market Fund?
- Who should invest in the AA Kenya Money Market Fund?
- What are the downsides of investing in AA Kenya Money Market Fund?
- What is the performance of the AA Kenya Money Market Fund?
- How does one join the AA Kenya Money Market Fund?
- How does one contact the AA Kenya Money Market Fund?
Let’s dive in!
In a hurry? Below is an overview of the African Alliance Kenya Money Market Fund.
| Fund Structure | Collective Investment Scheme |
| Asset Class | Money Market Fund |
| Fund Identity | African Alliance (AA) Kenya Money Market Fund |
| Launch | 27th April 2015 |
| Assets Under Management | Ksh 2024,031,811.00 (as of 31st August 2023) |
| Fund Manager | African Alliance Kenya Investment Bank Limited |
| Portfolio Manager | AA Kenya Investment Team |
| Regulator | Capital Markets Authority |
| Custodian | Stanbic Bank Kenya |
| Trustee | Stanbic Bank Kenya |
| Auditor | Grant Thornton Kenya |
| Base Currency | Kenya Shillings |
| Effective Annual Yield | 14.2% (as of 16th February 2024) |
| Minimum Investment | Ksh 100,000 lump sum |
| Minimum Top-up | None |
| Maturity Profile | Less than 13 months |
What’s the AA Kenya Shillings Fund?
The African Alliance (AA) Kenya Shillings Fund is a money market fund by African Alliance Kenya Investment Bank Limited (the fund manager) launched on 27th April 2015.
Today, the money market fund is no longer referred to as the African Alliance Kenya Shillings Fund or AA Kenya Shillings Fund but the African Alliance Kenya Money Market Fund.
The fund aims to offer investors an attractive current income level and preserve capital. They invest in low-risk financial instruments with a short-term maturity profile of less than 13 months.
Its investment portfolio currently includes Treasury Bills (or T-Bills), Treasury Bonds (or T-Bonds), and bank deposits. The fund has an asset size (assets under management or AUM) of Ksh 204,031,811 as of 31st August 2023.
How Does AA Kenya Shillings Fund Work?
The AA Kenya Money Market Fund is run by the fund manager or money manager, African Alliance Kenya Investment Bank, who manages the investment portfolio and advises the investors on potential investment opportunities.
The fund manager, however, collaborates with the custodian and trustee (Stanbic Bank Kenya). As the custodian, Stanbic Bank Kenya holds the funds awaiting the money manager’s decision. While serving as a trustee, Stanbic Bank Kenya holds the money manager accountable for the funds.
Another key player is the auditor, Grant Thornton Kenya, who reviews the fund’s financial statements and records and advises the money manager accordingly.
Investors must join with a lump sum of Ksh 100,000 or Ksh 1,000 monthly installments. Since it’s a collective investment scheme, they pool money to invest in financial instruments that would otherwise be expensive for them to invest individually.
African Alliance Kenya Investment Bank prioritizes financial instruments with a short-term maturity – not exceeding 13 months, and those with a low-risk profile.
Why Invest in the African Alliance Kenya Shillings Fund?
You may want to invest in the African Alliance Money Market Fund for different reasons, and here are the primary ones:
- Professional fund management – African Alliance Kenya Investment Bank Limited, the fund manager, is experienced in managing various collective investment schemes, not just the AA Shillings Fund. Their expertise in the money market sector makes them reliable in making the best investment decisions on behalf of the investors.
- Impressive returns – Since 2021, the African Alliance Kenya money market fund has registered an effective annual yield rate of at least 10%, a remarkable return rate. It’s better than what most banks promise on savings.
- Low fees – African Alliance Kenya Investment Bank Fund only charges a 1% account management fee per year, and the withholding tax rate is only 15%.
- Fast maturity – The money market fund only invests in financial instruments with a maturity of less than 13 months.
- Safety – The fund manager carefully considers all investment opportunities to invest in options with a low-risk profile. Moreover, the fund manager is certified with the Capital Markets Authority, which means they comply with all CMA’s guidelines and standards.
- High liquidity – Processing withdrawals from the African Alliance Kenya money market fund takes only a few days. That means you can have funds and attend to pressing financial needs as soon as possible.
Who Should Invest in the African Alliance Kenya Shillings Fund?
Anyone seeking a low-risk investment vehicle with more competitive rates than what local banks offer can invest in the African Alliance Kenya Shillings fund. Moreover, anyone who’s looking to save for whatever reason. That includes the following:
- Emergency fund
- School fees – in the form of a college fund
- Business startup capital
- Building project
- Business inventory
- Family or staff welfare
- Vacation
- Wedding preparation
- Large purchases like land or car
- Chama project
Downsides of Investing in the African Alliance Kenya Shillings Fund
The biggest downside of the AA Kenya Shillings Money Market fund is that the initial investment is relatively high. You must pay a Ksh 100,000 lump sum or contribute Ksh 1,000 every month until you hit the Ksh 100,000 target. That’s pretty expensive, considering that most money market funds in Kenya only require Ksh 100-Ksh 1,000 to join.
Performance of the African Alliance Kenya Shillings Funds Compared to Other Funds
Let’s compare the AA Kenya Money Market Fund interest rate from 2021 to that of other money market funds in the country, according to various Cytonn Reports:
2021
As of 7th May 2021, the AA Kenya Money Market Fund recorded an effective annual yield rate of 5.67%, which by today’s standards is relatively low. That saw the fund rank position 16/25.
According to the report, the top three highest-yielding money market funds at the time were Cytonn Money Market Fund (10.53%), Nabo Africa Money Market Fund (10.09%), and Zimele Money Market Fund (9.91%).
2022
As of 29th July 2022, the AA Kenya Money Market Fund registered a slightly improved effective annual yield rate of 7.9%. Cytonn maintained position 1 with a yield rate of 10.5%, while Nabo Africa and Zimele tied at position two with a yield rate of 9.9%.
2023
Another Cytonn report dating 29th September 2023 shows the AA Kenya Money Market Fund’s effective annual yield rate hitting 12.8%. According to the report, the top three highest-yielding funds were Gen Africa, Enwealth, and Cytonn money market funds, with an effective yield rate of 14.2%, 13.9%, and 13.8%, respectively.
2024
Most recently (16th February 2024), the African Alliance Kenya Money Market Fund’s effective annual yield rate was an impressive 14.2%, ranking it at position 14/25. Meanwhile, the top three highest-yielding funds were Etica, Lofty-Corban, and Cytonn money market funds, with an effective yield rate of 17.1%, 17.0%, and 16.7%, respectively.
Table Breakdown
Here’s what we arrive at from the above analysis of the performance of the African Alliance Money Market Funds since 2021:
| – | 2021 Effective Annual Yield Rate (As of 7th May) | 2022 Effective Annual Yield Rate (As of 29th July) | 2023 Effective Annual Yield Rate (As of 29th September) | 2024 Effective Annual Yield Rate (As of 16th February) |
| Top 3 Money Market Fund | Cytonn Money Market Fund (10.53%), Nabo Africa Money Market Fund (10.09%), and Zimele Money Market Fund (9.91%) | Cytonn Money Market Fund (10.5%), Nabo Africa Money Market Fund (9.9%), and Zimele Money Market Fund (9.9%) | Gen Africa Money Market Fund (14.2%), Enwealth Money Market Fund (13.9%), and Cytonn Money Market Fund (13.8%) | Etica Money Market Fund (17.1%), Lofty-Corban Money Market Fund (17.0%), and Cytonn Money Market Fund (16.7%) |
| AA Kenya Money Market Fund | 5.67% | 7.9% | 12.8% | 14.2% |
How to Join AA Kenya Shillings Fund?
Here are the steps for joining the African Alliance Kenya Money Market Fund:
- Go to the African Alliance website and tap on the ‘Asset Management’ tab at the top
- Drop down to the ‘Unit Trust’ tab and tap on it
- Go to the Kenya section and click to download an individual application form
- You can also use this link to access the individual application form quickly
- Fill out the application form accordingly
- Attach the relevant KYC documents (ID/Passport copy, proof of residence, KRA PIN, color passport photo, among others) and proof of payment (MPESA statement or a copy of the bank deposit)
- Make the necessary deposit (Ksh 100,000 lump sum or Ksh 1,000 in monthly installments)
- Send the application via email using the email address info@africanalliance.com and wait for the response from the fund manager.
How to Deposit Funds into Your African Alliance Kenya Shillings Fund Account
You can deposit funds into your AA Kenya Shillings fund account using any of these two options:
Option 1 – Via MPESA
Just use the pay bill number 7527655
Option 2 – Via Bank
You can also make deposits via Stanbic Bank Kenya using the information in the table below:
| Bank Name | Stanbic Bank of Kenya |
| Branch | Kenyatta Avenue |
| Branch Code | 31002 |
| Account Name | AAKAM-Asset Management Client Clash |
| Account Number | 0100002095607 |
| Swift Address | SBICKENX |
African Alliance Kenya Investment Limited Contacts
You can contact African Alliance Kenya Investment Limited, the money manager, for inquiries using any of these options:
- Head Office: 4th Floor, Kenya RE Towers Upper Hill, Off Ragati Road
- Postal Address: 27639-00506, Nairobi
- Phone Number: +254 709 997 000
- Email: info@africanalliance.com
- Contact form: Go to the website and click on the ‘Contacts’ tab, which will allow you to fill out a contact form
Concluding Thought:
The AA Kenya Shillings Fund may not yet be among the country’s top five highest-yielding money market funds. However, the fund has grown much and is on its way there. Its yield rate has been impressive, giving prospective investors like you a reason to invest.
For more information on other investment opportunities other than money market funds, expert tips on personal finance, and overcoming debt, visit our online shop today to see what we’ve in store for you. So many Kenyans benefit from our expertly assembled financial guides, books, and programs.
