The Arvocap Money Market Fund (MMF) has rapidly established itself as a competitive player in Kenya’s collective investment landscape. Since its launch in June 2024, the fund has demonstrated consistent performance and gained significant investor confidence, earning a position among Kenya’s top 10 money market funds by January 2026.
For many investors, the challenge has always been balancing safety, liquidity, and returns. Traditional savings accounts offer security but very low interest (typically 2-5%), while riskier assets like equities provide higher returns but come with volatility.
The Arvocap MMF bridges this gap by allowing investors to grow idle cash at double-digit yields while preserving capital and keeping funds accessible. This guide covers everything there is to know about the Arvocap MMF.
What is the Arvocap Money Market Fund?
The Arvocap MMF is a CMA-regulated Collective Investment Scheme that pools funds from investors and allocates them into short-term, low-risk, interest-bearing instruments. These include:
- Treasury Bills and short-term Government Bonds – backed by the Government of Kenya, making them highly secure.
- Fixed Deposits with top-tier commercial banks.
- Commercial Papers issued by financially sound corporations.
The fund’s core mandate is to:
- Preserve capital.
- Provide liquidity to investors.
- Deliver competitive and consistent returns.
Because of this design, the Arvocap MMF is particularly suitable for risk-averse investors and anyone looking for a secure place to grow cash without committing to long-term lockups.
Current Performance (As of January 30, 2026)
Effective Annual Yield: 11.83%
According to the latest market rankings from January 30, 2026, Arvocap MMF has climbed to 2nd position among Kenya’s 31 licensed money market funds, replacing Dry Associates MMF in the top 10. This represents significant competitive positioning for a fund that is less than two years old.
With a minimum deposit of just KES 3,000 and a 7-day lock-in period, this fund has become an accessible, safe, and rewarding investment tool for individuals, SMEs, and corporates looking to earn competitive returns on their idle cash.
What This Means for Investors
This performance tells two powerful stories:
- Competitiveness in Yield
Arvocap MMF is proving that even smaller funds can deliver returns on par with, and at times better than, industry leaders. With yields consistently above 11%, investors gain meaningful growth on their cash without the risks associated with equities or real estate.
- Confidence and Expansion
The doubling of total unit trust assets is a strong signal of investor confidence. Institutions and individuals alike are starting to view Arvocap not as a niche player but as an emerging competitor in Kenya’s MMF market.
For an investor, this combination of high yield + rapid growth + strong oversight suggests that Arvocap MMF is not just a short-term performer, but a fund with long-term potential to cement its place among Kenya’s top MMFs.
Key Features of the Arvocap Money Market Fund
| Feature | Details |
|---|---|
| Effective Annual Yield (Jan 30, 2026) | 11.83% |
| Market Ranking | 2nd out of 31 MMFs in Kenya |
| Minimum Initial Investment | KES 3,000 |
| Minimum Top-Up | KES 1,000 |
| Lock-in Period | 7 days |
| Liquidity After Lock-in | Withdrawals within 2-3 working days |
| Return Structure | Interest accrues daily, compounds monthly |
| Management Fee | 2% per annum (already factored into quoted yields) |
| Withholding Tax | 15% (deducted automatically) |
| Fund Size (AUM, December 2024) | KES 550.33 Million |
| Eligible Investors | Individuals, SMEs, corporates, institutions |
| Fund Manager | Arvocap Asset Managers Ltd (CMA License No. 191) |
| Custodian | NCBA Bank PLC |
| Trustee | NCBA Trustees |
| Fund Inception | 3rd June 2024 |
| Domicile | Kenya |
| Currency | Kenya Shillings (KES) |
Why Choose the Arvocap Money Market Fund?
When deciding where to place your money, three questions usually come to mind: Is my money safe? How much will it earn? And how quickly can I access it if I need it?
The Arvocap Money Market Fund addresses all three with compelling answers, which is why it’s quickly gaining traction in 2025.
1. Competitive Yields That Outpace Savings Accounts
With an effective annual yield of 11.83% (as of January 30, 2026), Arvocap MMF significantly outperforms traditional savings accounts (2-5%) and most fixed deposit products (6-8%). While yields have normalized from 2024 highs, the fund remains competitive and ranks 2nd among 31 licensed MMFs in Kenya.
2. Safety of Capital Through Conservative Investments
Unlike equities or real estate, the Arvocap MMF is built for capital preservation. The majority of its portfolio is held in government securities and bank deposits, both considered low-risk assets.
By focusing on safe and secure instruments, Arvocap gives investors peace of mind that their principal is protected, while still earning double-digit returns.
3. Liquidity and Cash Flow Flexibility
In a world where financial needs can change overnight, liquidity matters. With the Arvocap MMF, withdrawals are processed within 2–3 working days, ensuring your money is never out of reach.
This makes it particularly useful for businesses managing operational cash, individuals maintaining emergency funds, or investors holding cash temporarily before moving into larger opportunities.
4. Affordable Entry Point for All Investors
Accessibility is one of Arvocap’s strongest selling points. With a minimum deposit of just KES 3,000 and top-ups from KES 1,000, it caters to both first-time investors looking to test the waters and larger clients with substantial liquidity to manage.
This inclusivity broadens the appeal of the fund to students, salaried professionals, SMEs, and corporates alike.
5. Professional Fund Management and Regulatory Oversight
Arvocap Asset Managers are licensed and regulated by the Capital Markets Authority (CMA). This means the fund adheres to strict compliance standards designed to protect investors.
Beyond regulation, the fund is professionally managed by a team that actively monitors the fixed-income market to optimize returns while managing risk. For investors, this translates into trust, security, and disciplined performance.
6. Rapid Growth and Increasing Investor Confidence
The near doubling of Arvocap’s overall unit trust assets in just one quarter shows a wave of investor confidence.
As more individuals and institutions choose Arvocap, it benefits from greater economies of scale, better negotiation power on deposits, and stronger market visibility—all of which feed back into improved fund performance.
How the Fund Works
To understand how your money grows in the Arvocap MMF, it helps to break it down step by step:
- Pooling Contributions: Investor deposits are pooled together to create a sizeable fund.
- Strategic Allocation: The pooled funds are invested across a basket of short-term assets—mainly Treasury Bills, high-quality bank deposits, and corporate commercial papers.
- Daily Accrual: Interest is calculated daily, which means your money starts working for you immediately after investment.
- Monthly Compounding: Returns are compounded monthly, giving you the power of reinvested earnings to accelerate growth.
- Flexible Withdrawals: When you need your money, a withdrawal request can be made and typically processed within 2–3 business days.
This structure strikes a perfect balance between growth, safety, and liquidity, making it a powerful tool for both personal and corporate financial strategies.
Example of Potential Earnings
Let’s put the numbers into perspective. If you invested KES 100,000 at the current yield of 11.83%:
- After one year, your investment would grow to about KES 111,830.
- That’s KES 11,830 in interest, earned passively with almost no risk exposure.
To compare, if the same money were placed in a savings account at 3%, you’d only earn around KES 3,000. In a fixed deposit at 6%, you’d get KES 6,000.
The difference highlights why MMFs—and particularly Arvocap’s competitive rates—are attracting so much investor attention.
Risks to Consider
While the Arvocap MMF is designed to minimize risk, investors should never forget that no investment is entirely risk-free. Here are the main risks worth noting:
- Interest Rate Risk: Returns are tied to prevailing rates in the fixed-income market. If Treasury Bill yields or bank deposit rates decline, the MMF’s returns will also adjust downward.
- Credit Risk: Though rare and carefully managed, there is always a slim chance that a corporate issuer of commercial paper could default. Arvocap mitigates this by only selecting high-grade, vetted issuers.
- Liquidity Risk: In extreme cases, such as sudden large-scale withdrawals, there could be slight delays in processing redemptions. However, since most of the fund is invested in liquid government securities, this risk remains low.
For perspective, these risks are far less severe than those associated with equities, real estate, or unregulated investment schemes. The Arvocap MMF remains one of the safest ways to preserve and grow your money in Kenya.
Arvocap vs Other Money Market Funds in Kenya (January 2026)
One of the best ways to evaluate a money market fund is to compare it against its peers. Kenya has a vibrant MMF market, with more than 30 licensed players, ranging from established giants like Cytonn and CIC to newer, fast-growing funds like Arvocap and Nabo.
Each fund comes with unique strengths in terms of yield, entry requirements, and market size.
Comparing the Top 31 MMFs in Terms of Effective Annual Yield as of 30th January 2026
| Rank | Fund Manager | Effective Annual Yield |
|---|---|---|
| 1 | Cytonn Money Market Fund | 11.86% |
| 2 | Arvocap Money Market Fund | 11.83% |
| 3 | Nabo Money Market Fund | 11.80% |
| 4 | Enwealth Money Market Fund | 11.08% |
| 5 | Lofty Corban Money Market Fund | 11.02% |
| 6 | Etica Money Market Fund | 10.88% |
| 7 | Gulfcap Money Market Fund | 10.79% |
| 8 | Kuza Money Market Fund | 10.48% |
| 9 | Jubilee Money Market Fund | 10.47% |
| 10 | Old Mutual Money Market Fund | 10.19% |
| 11 | Madison Money Market Fund | 10.00% |
| 12 | Orient Kasha Money Market Fund | 9.98% |
| 13 | Britam Money Market Fund | 9.90% |
| 14 | Gen Africa Money Market Fund | 9.69% |
| 15 | Dry Associates Money Market Fund | 9.60% |
| 16 | SanlamAllianz Money Market Fund | 9.56% |
| 17 | Apollo Money Market Fund | 9.49% |
| 18 | KCB Money Market Fund | 9.12% |
| 19 | Faulu Money Market Fund | 9.00% |
| 20 | Genghis Money Market Fund | 8.67% |
| 21 | CIC Money Market Fund | 8.49% |
| 22 | ICEA Lion Money Market Fund | 8.32% |
| 23 | Co-op Money Market Fund | 8.24% |
| 24 | CPF Money Market Fund | 8.24% |
| 25 | Elidi Money Market Fund | 8.08% |
| 26 | Absa Money Market Fund | 7.52% |
| 27 | Mayfair Money Market Fund | 7.04% |
| 28 | African Alliance Money Market Fund | 6.12% |
| 29 | Zimele Money Market Fund | 6.04% |
| 30 | Stanbic Money Market Fund | 5.05% |
| 31 | Equity Money Market Fund | 4.93% |
Market Context: Understanding the Yield Environment
The current yields reflect a normalized interest rate environment following the Central Bank of Kenya’s monetary policy adjustments throughout 2024 and into 2026. The CBK lowered the benchmark interest rate from 12.75% to 9.75% to stimulate economic growth, which has resulted in lower returns across all MMFs compared to the highs seen in mid-2024.
Despite this normalization, Arvocap MMF has maintained its competitive edge, ranking 2nd overall while many established funds have seen more significant yield compressions.
Historical Performance Comparison
For context, here’s how Arvocap’s yield has evolved since inception:
- June 2024: 16.2%
- July 2024: 16.9%
- August 2024: 17.2%
- September 2024: 16.8%
- October 2024: 16.7%
- November 2024: 16.5%
- December 2024: 15.32%
- January 2026: 11.83%
This trend mirrors the broader market adjustments as inflation stabilized and monetary policy became more accommodative.
Takeaway for Investors
If you’re seeking a proven, established fund with massive scale, Sanlam and CIC are industry leaders with substantial investor bases and billions in assets under management. However, if you’re looking for a fast-growing, competitive alternative that delivers top-tier yields, the Arvocap MMF stands out.
Its affordability (KES 3,000 minimum), 2nd-place ranking by yield, and ability to produce returns that rival the market leader make it an attractive option in 2026. Arvocap is big enough to be trusted and small enough to grow quickly—a sweet spot for investors who value both safety and upside potential.
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How to Invest in the Arvocap Money Market Fund
Getting started with the Arvocap MMF is straightforward, and Arvocap has deliberately kept the process simple to encourage accessibility.
Whether you are an individual, a small business, or a corporate institution, Open Account Here: https://shorturl.at/cpjsP
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FAQs About the Arvocap Money Market Fund
1. What is the current yield on the Arvocap MMF?
As of 31st January 2026, the fund achieved a daily yield of 11.50% and an effective annual yield of 12.13%. These rates place Arvocap among Kenya’s most competitive MMFs in 2025.
2. How much do I need to get started?
You need a minimum of KES 3,000 to open an account. After that, you can make top-ups starting from KES 1,000. This relatively low entry point makes it suitable for beginners while still appealing to more established investors.
3. How soon can I access my money if I need it?
Withdrawals are processed within 2–3 working days. This liquidity makes the Arvocap MMF ideal for short-term savings goals, parking idle business funds, or building an emergency reserve.
4. Is the Arvocap MMF safe?
Yes. The fund invests primarily in low-risk securities such as Treasury Bills, Treasury Bonds, and fixed deposits in reputable banks. It is also regulated by the Capital Markets Authority (CMA), ensuring strict compliance and transparency.
While no investment is 100% risk-free, MMFs are considered one of the safest options available in Kenya.
5. Can businesses and organizations invest in the fund?
Absolutely. The Arvocap MMF is open to individuals, SMEs, corporates, and institutions. Many businesses use MMFs as a way to manage short-term liquidity while earning returns higher than what they’d receive from current accounts.
6. How do I receive my returns?
Returns accrue daily and are compounded monthly. You can reinvest earnings automatically to benefit from compound growth or withdraw interest regularly if you prefer additional cash flow.
7. How does Arvocap compare to other MMFs in Kenya?
While Arvocap is smaller in size (AUM ~KES 200M as of June 2025) compared to giants like Sanlam (KES 92B) or CIC (KES 87B), its yields are just as competitive, and its growth trajectory has been remarkable. This makes it an attractive option for investors who want both performance and growth potential.
Conclusion
The Arvocap Money Market Fund has proven itself as one of Kenya’s most promising investment options in 2026. With yields averaging above 11%, affordable entry requirements, and rapid fund growth, it provides an excellent option for both individuals and businesses.
Though still smaller compared to industry leaders, Arvocap MMF’s consistent performance, liquidity, and professional management make it a strong alternative for investors looking for safety, flexibility, and competitive returns.
If you’re building an emergency fund, managing business cash flow, or simply seeking a better alternative to bank savings, the Arvocap MMF deserves serious consideration.
For a broader perspective, make sure to read my full blog on Money Market Funds in Kenya, where I compare multiple funds side by side.
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