The CPF USD Money Market Fund has quickly become one of the notable additions to Kenya’s investment landscape. In an economy where the shilling continues to face pressure, many investors are looking for safe, USD-denominated options that combine liquidity, stability, and steady returns.
CPF Asset Managers introduced this fund to meet exactly that need.
For years, Kenyans relied heavily on shilling-based products—Treasury Bills, fixed deposits, and shilling money market funds. While effective, these products don’t protect investors from the depreciation of the Kenyan shilling against the US dollar.
That gap has fueled demand for dollar-based funds, and CPF USD MMF is stepping up as a solution.
This blog takes you through everything you need to know about the CPF USD Money Market Fund in 2025: what it is, how it works, its features, benefits, risks, performance, and why it might be the right choice for your financial goals.
What is the CPF USD Money Market Fund?
The CPF USD Money Market Fund (MMF) is a sub-fund under the CPF Unit Trust Funds, managed by CPF Asset Managers Limited, a firm licensed by the Capital Markets Authority (CMA) in May 2023.
The fund’s primary objective is simple: provide investors with a safe, liquid, and USD-denominated investment option. It achieves this by investing in high-quality short-term securities, both within Kenya and offshore, all denominated in US dollars.
As of June 2025, CPF USD MMF had an Assets Under Management (AUM) of Kshs. 10.6 million. While modest compared to established peers like CIC or Jubilee, this represents over 300% growth in one quarter, proving that investors are warming up to the fund.
Key Objectives and Investment Policy
CPF USD MMF is guided by three objectives: capital preservation, liquidity, and steady returns.
- Capital preservation means your principal investment is safeguarded.
- Liquidity ensures you can redeem your money when you need it.
- Steady returns are achieved by investing in short-term, USD-denominated securities.
Investment Instruments
The fund invests in a diversified portfolio, including:
- Treasury Bills and Bonds (USD-denominated)
- Commercial Papers
- High-quality Corporate Bonds
- Call and Fixed Deposits
To reduce interest rate exposure, CPF ensures the average weighted life of its portfolio is capped at 18 months.
Benchmark
The fund’s performance is benchmarked against the 30-day Secured Overnight Financing Rate (SOFR) + 0.25%, aligning it with global standards for USD investments.
Features of the CPF USD Money Market Fund
The CPF USD Money Market Fund is designed with investor needs in mind, blending transparency, flexibility, and cost-effectiveness. Unlike traditional savings accounts or fixed deposits that tie up your funds, this product gives you continuous access to your money while still earning competitive returns.
Key Features Explained
- Open-Ended Structure – You’re not locked in. Investors can buy into the fund at any time and redeem units whenever needed. This feature makes it especially useful for both individuals and institutions that may have fluctuating cash needs.
- Entry and Exit Fees: 0% – Unlike some investment products that charge upfront to join or penalize you for withdrawing, CPF USD MMF has no such charges. Every dollar you put in starts working for you immediately, and you can exit without losing money to hidden fees.
- Management Fee: 3% of AUM per year – This covers the cost of professional management, custodians, trustees, and administration. While higher than some peers, it ensures robust oversight and regulatory compliance, giving you peace of mind that your money is in safe, expert hands.
- Performance Fee: 15% of Returns Above Benchmark – The benchmark is set at the 30-day SOFR plus 0.25%. CPF only earns this fee if they exceed the expected baseline, aligning the fund manager’s incentives with your interests.
- Liquidity – Funds are accessible within short notice compared to fixed deposits that may lock money for months. This makes it ideal for investors who want their USD to remain flexible and available for emergencies, business, or personal needs.
- Tax Treatment – Income from this fund is exempt from Kenyan taxes, making it more rewarding than taxable bank deposit interest. Non-resident investors should confirm taxation rules in their home countries.
In short, CPF USD MMF’s features make it a well-structured product for both individuals and businesses who need a flexible, transparent, and regulated way to hold USD while earning interest.
Risk and Reward Profile
When investing, understanding risk is just as important as evaluating returns. The CPF USD Money Market Fund is rated Category 1 on the Capital Markets Authority’s (CMA) scale of 1–7, which is the lowest risk rating available.
This classification means the fund prioritizes capital preservation and stability over chasing high returns.
Types of Risks to Consider
- Currency Risk – If you eventually convert your investment back into Kenyan shillings, exchange rate movements can influence your net returns. For example, if the shilling strengthens significantly against the dollar, your effective value in KES terms may be lower.
- Market Risk – Although the fund invests in short-term securities, interest rates can still fluctuate. If global or local USD rates dip, the yield you receive may temporarily decline.
- Issuer Risk – Very rare, but still possible, is the risk that a company or institution issuing a commercial paper or bond defaults on payment.
How CPF Manages Risk
The fund reduces these risks through diversification across multiple securities, limiting the portfolio’s average maturity to 18 months, and focusing on high-quality instruments.
By doing so, CPF Asset Managers ensures that investors enjoy stability while avoiding undue exposure to long-term or speculative risks.
In essence, the CPF USD MMF is for investors who want to play it safe, keep their dollars intact, and accept modest but steady returns rather than taking big risks for higher gains.
Benefits of the CPF USD Money Market Fund
The CPF USD MMF stands out not just because of what it avoids—high risk—but because of the clear benefits it offers to everyday investors and institutions.
Why Investors Choose CPF USD MMF
- Liquidity and Flexibility – You can access your funds on short notice, unlike fixed deposits or long-term securities. This makes it perfect for investors who need quick cash access without disrupting long-term plans.
- Capital Preservation – The fund is structured to protect your principal. For investors who simply cannot afford to lose money—like parents saving for tuition or businesses holding working capital—this is invaluable.
- Competitive USD Returns – While it won’t match the double-digit returns of equities, CPF USD MMF typically delivers better yields than keeping dollars idle in a current account, ensuring your cash keeps growing even in the short term.
- Diversification Across Markets – By spreading investments across USD-denominated securities locally and offshore, the fund shields you from concentration risk and aligns with international standards of safe investing.
- Professional Oversight and Regulation – Your investment is managed by CPF Asset Managers, regulated by the CMA, with custodians and trustees providing an additional layer of accountability. This ensures transparency and compliance at every step.
When compared to leaving USD in a bank account that earns virtually no interest, CPF USD MMF gives you a disciplined yet rewarding alternative. Your money stays liquid, safe, and productive—all under professional management.
Performance Snapshot (June 2025)
As of June 2025, CPF USD MMF reported an AUM of Kshs. 10.6 million, up from Kshs. 2.5 million in March 2025. This growth shows strong early adoption.
Comparison of USD Money Market Funds in Kenya (June 2025)
| Fund Manager | Fund Name | AUM | Market Position |
| CIC Asset Managers | CIC USD MMF | Kshs. 4.29B | Largest |
| Jubilee Asset Managers | Jubilee USD MMF | Kshs. 2.61B | Strong player |
| Dry Associates | Dry Associates USD MMF | Kshs. 2.34B | Niche but solid |
| Absa Asset Management | Absa USD MMF | Kshs. 2.30B | Competitive mid-tier |
| Old Mutual | Old Mutual USD MMF | Kshs. 1.44B | Established |
| Etica | Etica USD MMF | Kshs. 359M | Growing steadily |
| Kuza | Kuza USD MMF | Kshs. 240M | Expanding |
| Lofty-Corban | Lofty-Corban USD MMF | Kshs. 187M | Emerging |
| Britam | Britam USD MMF | Kshs. 41.8M | Smaller |
| CPF Asset Managers | CPF USD MMF | Kshs. 10.6M | New & niche |
CPF’s size may be small for now, but its growth trajectory shows rising investor confidence.
Who Should Invest in CPF USD MMF?
The CPF USD Money Market Fund is not a product for everyone—it is best suited for people and institutions with direct or indirect exposure to dollars. If you fall into any of these groups, the fund could be a strategic fit:
- Kenyans earning in USD – Consultants, freelancers, export traders, and contractors who receive payments in dollars. Instead of converting to shillings immediately, they can preserve their earnings in USD and earn interest while deciding how to deploy the funds.
- Diaspora Kenyans – Millions of Kenyans abroad send remittances home every month. Instead of leaving the money idle in foreign accounts or converting it to shillings at unfavourable rates, the CPF USD MMF allows families to invest directly in USD and access it when needed.
- Businesses and NGOs – Companies or organizations that receive USD inflows (e.g., donor funding, export proceeds, or consultancy payments) often hold large balances temporarily. Parking this money in CPF USD MMF ensures it earns returns while remaining available for use.
- Parents and Guardians – Families preparing for international education expenses can use CPF USD MMF as a holding account for tuition fees. This reduces exposure to shilling depreciation and ensures funds are readily available when school bills are due.
- Investors seeking diversification – Not all wealth should be concentrated in one currency. For investors who already have shilling-based portfolios, CPF USD MMF offers a simple way to diversify into USD and hedge against local currency risk.
If you fit in any of these categories, the CPF USD MMF provides a safe, liquid, and regulated home for your dollars.
Practical Use Cases
To see the fund’s value more clearly, let’s explore some real-world applications:
- Parking funds before large purchases abroad – Suppose you are migrating or planning to buy property overseas. While preparing, you can hold your dollars in CPF USD MMF so they remain safe and liquid while earning interest.
- Saving for tuition fees in USD – Education abroad is one of the biggest dollar-denominated expenses. Parents saving for their children’s studies in the US, UK, or Canada can keep part of the tuition funds in CPF USD MMF, avoiding a last-minute scramble or losses due to exchange rate changes.
- Maintaining a USD emergency fund – Emergencies such as urgent overseas medical treatment or last-minute travel can be costly. Having a ready pool of USD in CPF USD MMF ensures you are financially prepared without dipping into risky investments.
- Managing business operational float – NGOs and export businesses often receive USD payments. Instead of leaving these funds idle in a current account, placing them in CPF USD MMF allows organizations to earn income until the money is needed for operations.
- Short-term savings for travel or international projects – Individuals saving for a big trip abroad or companies planning projects with foreign suppliers can keep their funds in CPF USD MMF to preserve value and earn returns until payment is due.
In short, CPF USD MMF is not just an investment—it is a practical financial tool that fits seamlessly into day-to-day financial planning for dollar earners and spenders.
How to Invest in CPF USD Money Market Fund
Getting started with CPF USD MMF is straightforward. The process is designed to be inclusive, quick, and transparent.
Steps to Get Started
- Open an Account – Visit CPF Asset Managers’ offices at CPF House, Haile Selassie Avenue, Nairobi, or apply online via their official platform. CPF also works with licensed agents who can help you set up your account.
- Submit KYC Documents – To comply with regulations, investors must provide standard documentation such as a National ID or Passport, KRA PIN, and proof of address (utility bill, tenancy agreement, etc.). This ensures compliance with anti-money laundering guidelines.
- Fund the Account – Investors deposit funds in USD, typically through bank transfer. While CPF has not published a strict minimum, most funds in the market start from as little as USD 100, making it accessible for both small savers and institutions.
- Monitor and Grow – CPF provides regular statements and updates so you can track your returns. Many unit trust platforms also provide online dashboards to help you stay updated on balances and performance.
This simple process means anyone—from a freelancer in Nairobi to a diaspora Kenyan in the US—can easily start building a USD cushion through CPF USD MMF.
Risks and Considerations
While the CPF USD MMF is classified as low risk, no investment is completely without risks. Here are key considerations:
- Lower returns compared to high-risk assets – Unlike equities or special funds, this product prioritizes stability. Investors seeking double-digit growth may find its returns modest.
- Currency conversion costs – For investors who will eventually convert USD back into shillings, currency fluctuations and bank conversion fees can impact effective returns.
- Small fund size – With Kshs. 10.6M AUM as of June 2025, CPF USD MMF is still small compared to giants like CIC or Jubilee. While this does not affect safety, large institutional investors may prefer funds with deeper liquidity pools.
- Management and Performance Fees – The 3% management fee and 15% performance fee above benchmark slightly reduce net returns. Investors should weigh this against the fund’s convenience, liquidity, and professional oversight.
Overall, CPF USD MMF is best described as a capital preservation tool. It is not designed to multiply wealth but to safeguard it in USD while generating modest returns.
Frequently Asked Questions
1. What is the minimum investment amount?
Most USD funds in Kenya accept investments from USD 100. CPF has not publicly confirmed its threshold, but it is expected to be similar, making it accessible to both small savers and large investors.
2. How safe is CPF USD MMF?
The fund is classified as Category 1 (lowest risk) by the CMA. It focuses on short-term, high-quality USD instruments, making it one of the safer investment vehicles available.
3. How quickly can I redeem my money?
The fund is open-ended, meaning you can request redemptions anytime. CPF typically processes redemptions quickly, making the fund liquid and reliable.
4. Are there entry or exit charges?
No. CPF USD MMF charges 0% entry fees and 0% exit fees, ensuring your money is not eroded when investing or withdrawing.
5. How are returns determined?
Returns are linked to the performance of the underlying securities (Treasury bills, deposits, corporate papers) and benchmarked against the 30-day SOFR + 0.25%.
6. Is CPF USD MMF better than a USD bank account?
Yes. Unlike USD current accounts that pay little or no interest, CPF USD MMF ensures your dollars earn a competitive return while remaining liquid.
7. Is CPF USD MMF regulated?
Yes. CPF Asset Managers is licensed and supervised by the Capital Markets Authority (CMA) under license number 164, issued in May 2023.
8. Can non-Kenyans invest?
Yes. Non-resident investors can participate. However, they should confirm tax obligations in their home countries since rules vary.
Conclusion – Should You Consider the CPF USD Money Market Fund?
The CPF USD Money Market Fund represents more than just another investment product—it reflects the growing sophistication of Kenya’s capital markets and the rising demand for dollar-denominated options.
While small compared to established giants, its rapid AUM growth proves that investors are embracing it as a safe, regulated, and professional way to hold USD.
If you are a diaspora Kenyan, a professional earning in USD, or a business handling dollar inflows, CPF USD MMF offers a smart way to keep your money liquid while still earning a return.
It’s not about chasing high-risk, high-reward bets, but about building a secure foundation for your dollar wealth.
The bottom line: If your financial goals include preserving value in USD, diversifying away from the shilling, and maintaining liquidity, then CPF USD MMF deserves a place in your portfolio.
Always consult a licensed financial advisor to confirm how it fits into your overall investment strategy.
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