When investors in Kenya look for a safe, liquid, and rewarding place to park their cash, the first product that comes to mind is often a Money Market Fund (MMF).
These funds dominate the collective investment schemes space, holding more than 62% of the total CIS market AUM in Kenya as of June 2025. Among the rising stars in this space is the GulfCap Money Market Fund, a relatively new entrant that is already proving its potential.
The GulfCap Money Market Fund is designed for individuals, corporates, SACCOs, institutions, and families who want to enjoy above-average returns while still maintaining access to their money.
With consistent yields, strong governance structures, and flexible entry requirements, GulfCap’s MMF is positioning itself as a strong alternative to traditional bank savings and fixed deposits.
Launched in March 2024, the fund is managed by GulfCap Investment Bank (GCIB), an institution licensed by the Capital Markets Authority (CMA).
GulfCap’s ambition is not just to compete with the most prominent players like Sanlam, CIC, and Britam, but to build trust among investors through transparency, regulation, and steady performance.
What is the GulfCap Money Market Fund?
At its core, the GulfCap Money Market Fund is a collective investment scheme (CIS) that pools money from thousands of investors and invests in short-term, low-risk securities. The goal is to preserve capital while earning a steady return that beats traditional savings products.
The fund primarily invests in:
- Treasury bills – lending money to the Government of Kenya for short-term funding.
- Bank deposits and call accounts – highly liquid deposits placed with regulated banks.
- Fixed deposits – short-term placements that earn higher interest than ordinary accounts.
Unlike speculative investments such as equities or cryptocurrencies, MMFs are designed to safeguard your money. They do this by sticking to predictable, stable instruments, making them perfect for emergency funds, short-term savings, or cash parking for businesses.
For everyday investors, the GulfCap Money Market Fund answers the question: Where can I safely store my money and still see it grow every month?
Key Features and Benefits
Here are the main features of the GulfCap MMF, with detailed insights into what each means for investors:
| Feature | Details and Implications |
| Fund Manager | GulfCap Investment Bank – licensed by CMA in 2022 and known for innovative, client-focused financial products. |
| Launch Date | March 2024 – making it a relatively new but fast-growing player. |
| Risk Profile | Low – ideal for conservative investors who prioritize capital protection. |
| Currency | Kenyan Shilling (KES). |
| Minimum Investment | KES 1,000 – affordable entry point for most investors. |
| Minimum Top-Up | KES 100 – allows gradual, consistent savings habits. |
| Lock-In Period | None – full liquidity; you can withdraw whenever needed. |
| Initial Fee | Nil – no charges when opening your account. |
| Annual Management Fee | 2% – in line with market standards, deducted from returns before distribution. |
| Income Distribution | Monthly – earnings are credited each month, and can be withdrawn or reinvested. |
| Trustee | Cooperative Bank of Kenya – safeguarding investors’ interests. |
| Custodian | I&M Bank Kenya – responsible for holding the fund’s assets. |
| Auditors | PKF Auditors – ensuring independent oversight and accountability. |
| Regulator | Capital Markets Authority (CMA). |
These features show why the GulfCap Money Market Fund is attractive: low entry barriers, daily interest accrual, and reliable liquidity.
Fund Performance Snapshot
The biggest concern for investors is always: How much return will I get?
According to the August 2025 fact sheet, the GulfCap Money Market Fund delivered a net annualized yield of 10.32%. This is competitive with Kenya’s leading MMFs and significantly higher than bank savings, which average around 3–4%.
Performance Trends 2025:
| Month (2025) | Annualized Yield (p.a.) Net of Fees |
| May 2025 | 13.02% |
| June 2025 | 11.45% |
| July 2025 | 10.11% |
| August 2025 | 10.32% |
The yields demonstrate how the fund reacts to market dynamics. For instance, higher yields in May reflected rising interest rates in the treasury bill market, while the dip in July was consistent with industry-wide easing of returns.
Despite fluctuations, the fund maintained double-digit returns, reinforcing its reliability.
Assets Under Management (AUM)
As per the CMA CIS Q2 2025 report, GulfCap Unit Trust Funds collectively managed KES 766 million, with the GulfCap MMF holding KES 380 million.
Though this is just 0.1% of the MMF market, it represents 43% growth quarter-on-quarter, proving rising investor confidence.
Why Choose GulfCap Money Market Fund?
1. Capital Preservation
The fund invests at least 80% of its assets in bank deposits and call accounts. This strategy ensures your principal is preserved even in volatile markets.
2. Flexibility and Liquidity
Unlike fixed deposits that lock you in for months, GulfCap MMF allows you to withdraw funds anytime, making it perfect for emergency funds, short-term savings, or cash parking.
3. Competitive Returns
Earning over 10% per annum consistently means your idle cash is working for you. If you had KES 1,000,000 invested in August 2025, you would earn about KES 103,200 annually—far higher than a savings account.
4. Compounding Power
Monthly payouts can be reinvested, compounding your earnings over time. A disciplined investor topping up monthly could achieve impressive cumulative returns.
5. Transparency and Regulation
With oversight from the CMA, a trustee (Co-op Bank), and a custodian (I&M Bank), your investment is independently monitored.
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How to Invest in the GulfCap MMF
Investing is simple and convenient. You can fund your account through:
- Bank Transfer
- Bank: I&M Bank (Spring Valley Branch)
- Account No.: 03604204381357
- Bank: I&M Bank (Spring Valley Branch)
- M-Pesa
- Paybill: 4221888
- Account No: GMF Client Code + M (e.g., GMF01001M)
- Paybill: 4221888
- Cheque/RTGS
- Acknowledgement slip provided upon deposit.
- Account reflects instantly after clearance.
- Acknowledgement slip provided upon deposit.
With a minimum investment of KES 1,000 and top-ups of just KES 100, GulfCap MMF is accessible to everyone—from students to corporates.
Visit the company website for clarification.
How GulfCap Compares to Other MMFs
| Fund | Yield (Aug 2025) | AUM (KES) | Lock-In Period |
| GulfCap MMF | 10.32% | 380M | None |
| Sanlam MMF | 11.5% (avg.) | 92.7B | None |
| CIC MMF | 11.4% (avg.) | 87.8B | None |
| Britam MMF | 10.5% (avg.) | 12.8B | None |
| Jubilee MMF | 10.3% (avg.) | 9.2B | None |
| Enwealth MMF | 10.1% (avg.) | 1.1B | None |
While GulfCap is still small in AUM compared to the giants, its returns are competitive, and its growth rate is outpacing some larger funds. For investors who value agility and competitive yields, it is an attractive option.
Frequently Asked Questions
1. Is the GulfCap Money Market Fund safe?
Yes. It is regulated by the CMA and invests mainly in short-term, low-risk securities like treasury bills and deposits. Independent oversight from Co-op Bank (trustee) and I&M Bank (custodian) enhances safety.
2. How quickly can I withdraw my money?
Withdrawals are processed quickly, often within 2–3 business days, depending on your bank. The fund has no lock-in period, ensuring liquidity.
3. What kind of returns should I expect?
Returns vary monthly depending on interest rates, but GulfCap has consistently delivered 10–13% p.a. in 2025.
4. Can I invest via M-Pesa?
Yes. GulfCap allows contributions via Paybill 4221888 using your GMF client code.
5. Who can invest in GulfCap MMF?
Individuals, SACCOs, chamas, corporates, NGOs, pension schemes, and even parents on behalf of minors. The fund is inclusive and flexible.
Final Thoughts
The GulfCap Money Market Fund may not yet rival the giants in terms of AUM, but investor confidence is steadily growing. Its consistent double-digit yields, low entry barriers, and zero lock-in make it an excellent choice for those who want a safe, liquid, and rewarding place to invest.
For conservative savers, SMEs with idle cash, and families building emergency funds, GulfCap MMF is not just an option—it’s a smart financial strategy. With continued growth and transparency, GulfCap has the potential to become a bigger force in Kenya’s MMF market in the coming years.
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