The Faulu Money Market Fund (MMF) is a regulated and investor-friendly fund managed under the Faulu Unit Trust Scheme.
In Kenya’s fast-evolving investment landscape, Money Market Funds have become the most popular vehicle for both individuals and institutions seeking safe, short-term, and flexible returns.
As of June 2025, the Faulu Money Market Fund had accumulated Ksh 287.4 million in Assets Under Management (AUM).
While it is a relatively small player compared to larger funds like Sanlam, CIC, or NCBA, Faulu MMF positions itself as a steady and reliable option for savers and investors who value liquidity, accessibility, and consistent compounding growth.
For first-time investors, Faulu MMF offers one of the lowest barriers of entry in the market, starting at just KES 1,000, making it attractive to students, young professionals, SMEs, SACCOs, and even established corporates looking for a safe home for idle cash.
Key Features of Faulu Money Market Fund
Here are the most defining features that make Faulu MMF stand out in 2025:
| Feature | Details (2025) |
| Minimum Investment | KES 1,000 (low entry point, affordable to most investors) |
| Minimum Top-Up | KES 1,000 (flexible additional deposits allowed anytime) |
| Bank Account Requirement | Must hold a Faulu Bank account for seamless transactions and fund management |
| New Customers | Non-Faulu customers can open a Faulu account to access the MMF |
| Monthly Contributions | No minimum or maximum contribution limits |
| Top-Up Options | Anytime via standing order, direct deposit, or one-time transfers |
| Compounding | Interest accrues daily and compounds monthly, with reinvested earnings |
| Liquidity | Withdrawals are typically processed within 2–4 business days |
| Risk Profile | Low risk – primarily invested in Treasury Bills, Bonds, and bank deposits |
| Regulator | Licensed and supervised by the Capital Markets Authority (CMA) |
| AUM (June 2025) | Ksh 287,379,525 |
This unique blend of low entry requirements, flexible top-ups, and daily compounding makes Faulu MMF a competitive option for Kenyans seeking to grow savings without the restrictions of fixed deposits or the volatility of stocks.
How the Fund Works
The Faulu MMF pools money from investors into a professionally managed fund. This money is allocated into secure, short-term financial instruments, including:
- Treasury Bills and Treasury Bonds issued by the Government of Kenya.
- Fixed deposits in tier-one and reputable banks.
- Other carefully vetted money market instruments that prioritize safety.
Every day, your money earns interest, which is calculated and accrued daily. At the end of the month, this interest is compounded and reinvested, increasing your unit balance and accelerating your growth.
This system of monthly compounding ensures your money grows faster than in a bank savings account, where interest accrues quarterly or annually.
Performance and Market Standing in 2025
- Effective Annual Yield: Faulu MMF’s return typically ranges between 9% and 11%, aligning with industry standards. While it may not offer the absolute highest yield in the market, it provides consistent and predictable growth.
- Assets Under Management: At Ksh 287.4 million, the fund remains modest compared to giants like Sanlam and CIC, but its steady 4% quarterly growth in Q2 2025 demonstrates stability and investor confidence.
- Market Share: With just about 0.1% of total MMF industry AUM, Faulu is still a small-scale player, but it fills an important niche—providing accessibility and flexibility to everyday savers.
Why Choose Faulu Money Market Fund?
1. Affordable and Accessible
Unlike many funds that demand a higher initial investment (KES 5,000 to KES 10,000), Faulu MMF allows you to start with KES 1,000 only. This makes it one of the most inclusive MMFs in Kenya.
2. Seamless Banking Integration
Investors must hold a Faulu Bank account. While this may look like a restriction, it actually ensures faster transactions, easy monitoring, and smooth fund management, compared to funds requiring third-party bank transfers.
3. Flexibility in Contributions
There are no minimum or maximum monthly contributions. You can invest regularly through standing orders or top up sporadically, depending on your cash flow. This makes it ideal for both salaried professionals and self-employed individuals.
4. Daily Interest, Monthly Compounding
Unlike bank savings accounts that compound quarterly, Faulu MMF accrues interest daily and compounds monthly. This maximizes the growth of your money and keeps your cash working harder.
5. Liquidity and Access
Withdrawals are processed within 2–4 business days, making it a convenient emergency fund option. Unlike fixed deposits, you don’t lose accrued interest when accessing your money early.
Who Should Consider Faulu MMF?
The Faulu Money Market Fund is designed to meet the needs of a broad spectrum of investors. Its low entry barrier, daily accrual of interest, and flexible contribution structure make it a versatile choice across different demographics.
Let’s explore in more detail:
- Young Professionals: If you’ve just started working and are looking for a place to build your savings, Faulu MMF provides the perfect stepping stone. With only KES 1,000 required to start, young earners can cultivate a savings and investing culture without straining their finances.
- Families and Households: Parents can use Faulu MMF to set aside funds for school fees, medical expenses, and household emergencies. Since withdrawals are processed in a few business days, it offers a balance between accessibility and growth.
- Small and Medium Enterprises (SMEs) & SACCOs: Faulu MMF offers a solution where idle funds work for the business, earn daily returns, and remain accessible when cash flow needs arise. SACCOs can also use it to optimize returns on member contributions before deploying them to loans.
- Conservative Investors: For retirees, low-risk investors, or those diversifying from more volatile assets, Faulu MMF is a good fit. It preserves capital, provides regular compounding growth, and acts as a hedge against inflation in the short term.
- Goal-Oriented Savers: Unlike banks, which may limit how frequently you can top up or withdraw, Faulu MMF allows unlimited deposits and flexible access, aligning well with personal financial goals.
In essence, anyone who wants to earn steady, predictable returns while preserving capital and still maintain flexibility should consider Faulu MMF.
How to Join Faulu Money Market Fund
Getting started with the Faulu MMF is straightforward, even if you’re new to investing. Here’s a detailed step-by-step process to help you onboard smoothly:
- Open a Faulu Bank Account: This is a mandatory step for both new and existing customers. If you are already banking with Faulu, you can link your existing account. If not, you’ll need to open one.
- Complete the Investor Application Form: The form is available on Faulu’s official website or at any Faulu branch. It captures key details such as personal information, bank account, and investment preferences.
- Submit Required KYC Documents: Investors will need to provide a copy of their national ID, KRA PIN certificate, passport photo, and bank details. This process ensures accountability, compliance, and investor protection.
- Make the Initial Deposit: To activate your account, you must invest at least KES 1,000. Once credited, you become an active unit holder in the fund.
- Start Growing Your Wealth: From the day your funds are deposited, interest begins accruing daily. At the end of each month, the interest is compounded, automatically reinvested, and reflected in additional units in your account.
- Top-Up Anytime: Unlike fixed savings accounts, Faulu MMF allows flexible top-ups of KES 1,000 or more at any time. You can set up a standing order for regular contributions, make direct deposits, or use one-time transfers depending on your financial situation.
- Withdraw When Needed: Withdrawals are processed within 2–4 working days, ensuring access to your funds while still giving the fund manager time to settle transactions.
The entire process is straightforward, making Faulu MMF an attractive option even for first-time investors unfamiliar with collective investment schemes.
Risks and Considerations
Although the Faulu Money Market Fund is categorized as low risk, it is still essential for investors to recognize that no investment is entirely risk-free. Understanding the potential dangers ensures realistic expectations and better financial planning.
- Interest Rate Risk:
The fund’s performance is tied to prevailing interest rates set by the Central Bank of Kenya (CBK). When interest rates drop, yields from Treasury Bills and other money market instruments may decline, leading to slightly lower returns.
Conversely, when rates rise, the fund’s performance improves.
- Liquidity Constraints:
While withdrawals are typically processed within 2–4 working days, unforeseen market pressures or large redemption requests could slow down payouts temporarily. However, such delays are rare given the fund’s focus on short-term instruments.
- Smaller Asset Base:
With AUM at Ksh 287.4 million as of June 2025, Faulu MMF is smaller compared to industry giants managing billions. This may limit diversification in asset classes.
Still, Faulu MMF maintains a disciplined investment strategy by focusing on government securities and top-tier deposits, which significantly mitigates concentration risk.
- Inflation Risk:
While returns often outpace ordinary savings accounts, they may not always beat long-term inflation rates. For investors with longer horizons, MMFs are better used alongside higher-return investments like equities, bonds, or property.
Despite these risks, Faulu MMF remains a stable, regulated, and transparent option for Kenyans seeking safety and predictability in their investments.
FAQs about Faulu Money Market Fund
1. How much do I need to start?
You only need KES 1,000 to begin investing. This is one of the lowest entry requirements in the Kenyan MMF market, making it highly accessible.
2. Can I top up at any time?
Yes. The fund allows you to top up from as little as KES 1,000 whenever you wish. You can automate this through standing orders or make one-time deposits, depending on your convenience.
3. Why is a Faulu Bank account required?
Having a Faulu Bank account ensures smooth transaction processing, easier monitoring of your units, and faster settlements. It also aligns your banking and investment activities within one ecosystem.
4. How often does my money grow?
Interest is calculated daily, ensuring your money never sits idle. At the end of every month, this interest is compounded and reinvested, increasing your overall unit balance.
5. How safe is Faulu MMF?
The fund is regulated by the Capital Markets Authority (CMA) and invests in secure instruments such as Treasury Bills, Treasury Bonds, and deposits in reputable banks. This makes it one of the lowest-risk investment vehicles in Kenya.
6. Can businesses also invest?
Yes. SMEs, SACCOs, and corporates can open accounts under the Faulu MMF to manage their short-term liquidity, build reserves, and optimize returns on surplus funds.
Conclusion
The Faulu Money Market Fund has carved out a unique space in Kenya’s investment market by offering affordability, accessibility, and flexibility.
With its KES 1,000 entry point, daily interest accrual, monthly compounding, and seamless Faulu Bank integration, it provides a safe and effective alternative to bank deposits that often yield negligible returns.
Though smaller in size compared to industry giants, Faulu MMF shines as a fund designed for the everyday Kenyan investor—from young professionals and families to SMEs and conservative savers.
It strikes the right balance between capital preservation, regular growth, and liquidity, making it ideal for short-term savings, emergency funds, and goal-based financial planning.
In 2025, as Kenyans continue to look for ways to outpace inflation and make their money work harder, the Faulu Money Market Fund remains a credible and practical choice.
It may not deliver the absolute highest returns, but it offers something more valuable—peace of mind, stability, and financial discipline.
If you’re searching for a safe entry into the world of investing, Faulu MMF is a gateway worth considering.
Don’t Miss These Opportunities Before You Go!
- Join Cent Warrior Education & Protection WhatsApp Tribe: https://shorturl.at/dzvHz.
- Join the Cent Warrior WhatsApp Money & Wealth Mastery Tribe: https://shorturl.at/l7Fgg.
- Get Your Free Wealth Masterplan E-Book: https://shorturl.at/n7u0M
- Visit My Resources Hub Here: https://linktr.ee/centwarrior
- Visit My Online Shop Here: https://centwarrior.com/shop/
