Absa Shilling Money Market Fund – A Smart Way to Grow Your Cash in Kenya

If you’re looking for a safe and reliable way to grow your money in Kenya, chances are you’ve already heard about Money Market Funds (MMFs)

They’ve become the go-to option for investors who want stability, liquidity, and returns that beat typical savings accounts.

By mid-2025, MMFs held close to Ksh 373 billion, making up more than 60% of the Collective Investment Schemes market. Clearly, Kenyans are trusting these funds with their hard-earned money.

Among the leaders is the Absa Shilling Money Market Fund. With over Ksh 23 billion under management and ranking as the third-largest MMF in Kenya, it’s a favorite for individuals and corporates who want their cash to work harder without taking unnecessary risks.

So, what makes this fund such an attractive option? Let’s break it down simply and practically.

Absa shilling money market fund

Understanding the Absa Shilling Money Market Fund

The Absa Shilling Money Market Fund (SMMF) is a collective investment scheme managed by Absa Asset Management Limited, a licensed subsidiary of Absa Bank Kenya. 

The fund pools money from thousands of investors and then invests it in short-term, low-risk instruments like:

  • Treasury Bills and Government Bonds (backed by the Government of Kenya).
  • Fixed deposits
  • Cash 
  • Call deposits

It’s regulated by the Capital Markets Authority (CMA), which means there is strict oversight and investment guidelines to safeguard investor funds.

Imagine you and 10,000 other people pooling your money together. Instead of each of you trying to negotiate interest rates with a bank, Absa does it at scale, securing better returns and managing risk professionally. 

That’s the power of a money market fund.

The fund’s primary objectives are simple yet powerful:

  • Capital Preservation – keep your money safe.
  • Liquidity – allows you to withdraw when needed.
  • Competitive Income – help your money grow steadily through daily interest accrual.

Performance and Market Position

Performance is often the first thing investors look at. And Absa has done exceptionally well. 

By June 2025, the Absa Shilling Money Market Fund was the third-largest MMF in Kenya, commanding Ksh 23.08 billion in AUM. That’s nearly double-digit market share growth compared to a few years ago.

To give you a sense of the landscape, here’s a look at how the major MMFs compare:

RankFundAUM (Kshs Billion)Market Share (%)
1Sanlam Money Market Fund92.724.9%
2CIC Money Market Fund87.823.6%
3Absa Shilling Money Market Fund23.16.2%
4ICEA Lion Money Market Fund20.25.4%
5Co-op Money Market Fund19.55.2%

This ranking shows Absa isn’t just a “small player”—it’s solidly in the top three of the Kenyan MMF space. That gives it credibility and demonstrates investor confidence in Absa Asset Management’s deliverability.

Absa money market fund performance

Where the Fund Invests

One thing that makes the Absa Shilling MMF appealing is its conservative investment approach. Here’s the portfolio breakdown as of June 2025:

Asset ClassAllocation (%)
Fixed Deposits60%
Government Securities (T-Bills & Bonds)35%
Cash & Demand Deposits5%

This allocation tells you two things:

  1. Your money is secure, since the bulk is placed in government-backed securities and bank deposits.
  2. The fund maintains liquidity, with a 5% buffer in cash and demand deposits to handle quick withdrawals.

That balance is why MMFs are considered low-risk, steady-return investments.

Key Features of the Absa Shilling Money Market Fund

  • Minimum Investment: Ksh 1,000.
  • Top-Ups: Flexible—you can add as little as you want after your initial deposit.
  • Liquidity: Withdrawals are processed within 2–4 working days.
  • Returns: Interest accrues daily and is credited monthly to your account.
  • Accessibility: Open to individuals, corporates, SACCOs, and investment clubs.
  • Risk Profile: Low risk, as it’s anchored in government securities and bank deposits.

What stands out here is the low entry point (Ksh 1,000), making it accessible to almost anyone looking to start investing.

Absa shilling MMF

How Returns Work – The Power of Daily Interest

Here’s a simple example:

  • You invest Ksh 100,000 in the Absa Shilling MMF.
  • The annualized yield is 10% (this fluctuates but stays within 9–12%).
  • Instead of waiting a year, interest is accrued daily and then compounded.
  • Your returns are credited to your account at the end of the month.

So, even if you withdraw mid-year, you’ll still have earned interest up to that point. This daily compounding is one of the reasons MMFs beat savings accounts hands down.

Benefits of Investing in Absa Shilling Money Market Fund

1. Safety of Capital

The risk of losing money is minimal because most investments are in government securities and fixed deposits.

2. Liquidity

Unlike fixed deposits, you’re not locked in. You can access your funds in just a few days.

3. Higher Yields

With average yields between 9–12%, the Absa MMF typically outpaces savings accounts (2–4%) and even some fixed deposits (7–9%).

4. Professional Fund Management

Absa Asset Management brings banking expertise, compliance, and economies of scale that you wouldn’t get on your own.

5. Flexible Usage

It’s perfect for:

  • Emergency funds.
  • Saving for school fees or rent.
  • Businesses managing payroll or short-term liquidity.
  • Parking lump sums while deciding on long-term investments.
Absa money market fund

How to Invest in the Absa Shilling Money Market Fund

  1. Open an Account – through Absa branches or Absa Asset Management.
  2. KYC documents (such as a national ID/Passport, a KRA PIN, and proof of address).
  3. Deposit Funds – via bank transfer, standing order, or M-Pesa.
  4. Start Earning – interest accrues daily.
  5. Withdraw Anytime – usually within 2–4 working days.

Absa also offers an online and mobile portal, making it easy for tech-savvy investors to monitor balances and returns in real time.

Risks and Considerations

While the Absa Shilling MMF is low-risk, no investment is entirely risk-free. Some points to consider:

  • Inflation Risk: If inflation rises above the fund’s yield, your “real returns” may be eroded.
  • Variable Yields: Returns fluctuate depending on market interest rates.
  • Short-Term Nature: Great for capital parking, but not ideal for long-term wealth creation.
  • Systemic Risks: In the unlikely event of government default or liquidity crunch, performance could be affected.

That said, MMFs are considered among the safest investment vehicles in Kenya today.

Absa’s Place in the Bigger Picture

It’s worth noting that Absa doesn’t just run the Shilling MMF. Their Unit Trust portfolio also includes:

  • Absa Dollar Money Market Fund.
  • Absa Bond Fund.
  • Absa Equity Fund.
  • Absa Balanced Fund.

Collectively, these funds held over Ksh 25.4 billion in AUM by June 2025, giving Absa a 4.3% share of the total CIS market.

This diversification means investors can eventually move from the MMF into other funds if they want more risk or long-term growth—without leaving the Absa ecosystem.

Absa money market fund KES

Is the Absa Shilling Money Market Fund Right for You?

This fund is ideal if you:

  • Want a safe, low-risk place to keep your money.
  • Are saving for short-term goals like school fees, travel, or a house deposit.
  • Run a business and need to manage liquidity efficiently.
  • Are just starting your investment journey and want to learn while earning steady returns.

It’s not ideal if you:

  • Want high-risk, high-return growth (e.g., stocks, crypto).
  • Are looking for long-term aggressive wealth building.

Final Thoughts – Why Absa Shilling Money Market Fund Stands Out

The Absa Shilling Money Market Fund has firmly established itself as one of Kenya’s top three MMFs. 

With over Ksh 23 billion in AUM, consistent returns in the 9–12% range, and the credibility of Absa Bank backing it, this fund offers a compelling blend of safety, liquidity, and steady growth. 

It’s a smart way for individuals to build an emergency fund or save for near-term goals. 

For businesses, it’s a reliable cash management tool that ensures idle money keeps working. In a country where inflation eats into savings and unpredictable markets scare investors away, the Absa Shilling Money Market Fund is proof that you don’t need to take big risks to make your money grow.

If you’ve been wondering where to park your cash while still earning competitive returns safely, this fund deserves to be at the top of your list. And if you’ve been looking for a proven way to put your financial house in order and make it big, check out my 7-Step Wealth Masterplan E-Book. This free-to-download e-book is the ultimate guide to mastering money, gowing it, and protecting wealth.

Picture of Written by Alex

Written by Alex

I have passion in helping people Make, Manage, Multiply & Protect Wealth.Download my Free Guide to Financial Freedom >>[ GET IT HERE]<<