The name ‘Kuza’ may not be the most famous in the money market sector, but it’s quickly becoming a mass puller thanks to its impressive payout. For example, as of 31st August 2023, the Kuza Money Market Fund had an effective annual yield rate of 12.26%, making it one of the country’s highest-yielding money market funds.
Today, Kuza isn’t just dishing out mammoth payouts to its members or unit holders, but it also delivers on several fronts, such as high liquidity and capital preservation through calculated low-risk investments.
I’ll share more about the advantages of investing in Kuza and why the fund may be your best bet yet regarding its performance. Ultimately, you will be familiar with this money market fund and have enough armory to decide if you should pursue the investment.
Here’s what you can look forward to learning about Kuza:
- What’s Kuza Money Market Fund?
- How does the Kuza MMF work?
- Kuza Money Market Fund’s performance lately
- Should you invest in the Kuza Money Market Fund?
- How do you join the Kuza MMF?
- How do you withdraw from your Kuza MMF account?
- Kuza MMF contact information
Here we go!
In a rush? Below is an updated Kuza Money Market Fund fact sheet as of 31st August 2023
Kuza Money Market Fund Fact Sheet
|Fund Name||Kuza Money Market Fund|
|Fund Structure||Collective Investment Scheme|
|Base Currency||KES and USD|
|Fund Manager||Kuza Asset Management|
|Custodian||KCB Bank Ltd|
|Trustee||Cooperative Bank of Kenya|
|Regulator||Capital Markets Authority|
|Other License||Retirement Benefits Authority|
|Effective Annual Yield Rate||12.26%|
|Minimum Investment||Ksh 5,000|
|Minimum Top-Up||Ksh 1,000|
|Management Fee||2% per annum|
|Fund Withdrawal Time||48 hours|
|Lock-In Period||Two weeks|
What’s Kuza Money Market Fund?
The Kuza Money Market Fund is a Collective Investment Scheme by Kuza Asset Management that invests in short-term low-risk securities such as bank and call deposits, government T-bills, government T-bonds, Corporate bonds, and commercial papers.
The Money Market Fund (MMF) was founded in December 2022, making it less than a year old in the country. The fund offers two products to its investors as follows:
1. Kuza Money Market Fund KES
Kuza Money Market Fund KES targets short-term-oriented, low-risk local investors who wish to invest in securities that promise inflation-beating returns.
The base currency, in this case, is the Kenya Shilling. When joining, customers must make a minimum deposit of Ksh 5,000 and a minimum top-up of Ksh 1,000.
As of 31st August 2023, the Kuza MMF KES’s effective annual rate was 12.26%, as shared in the table above.
2. Kuza Money Market Fund USD
The above money market fund product by Kuza Asset Management targets investors looking to hedge against the volatile exchange rate through short-term US-denominated securities.
So, the base currency is the US dollar. Investment-wise, the minimum joining amount is $100, and you must make a minimum top-up of $50. As of 31st August 2023, the effective annual yield rate for the Kuza MMF USD was 5.55%.
Below is a quick comparison between Kuza MMF KES and Kuza MMF USD.
|–||Kuza MMF KES||Kuza MMF USD|
|Base Currency||Kenya Shillings (KES)||US Dollar (USD)|
|Minimum Investment||Ksh 5,000||$100|
|Minimum Top-Up||Ksh 1,000||$50|
|Effective Annual Yield (As Of 31st August 2023)||12.26%||5.55%|
|Benchmark||GOK 91-day T-bill||Tier-1 KCB Average Dollar Deposit Rate|
How Does Kuza Money Market Fund Work?
All money market funds in Kenya have a similar working model, and Kuza is no exception. Like others, the Kuza Fund features several parties and key players, such as members (or unit holders), the money manager, the custodian, the trustee, and the regulator.
The members where you come in are the individual investors who pool their money in exchange for units or shares, thus the name unit holders. Usually, the interest income earned is directly proportional to the shares or units a member holds.
The money manager, who in this case is Kuza Asset Management, is tasked with developing the investment portfolio, researching the investment opportunities, and investing on behalf of the investors.
But to ensure that there are no malpractices and everything happens by the book, the Trustee, who in this case is the Cooperative Bank of Kenya, comes in.
Though the Fund Manager invests the money, he doesn’t keep it. That’s the custodian’s duty, which in this case is KCB Bank. Overall, the money market fund and the fund manager must be approved and licensed by the Capital Markets Authority(CMA).
But in addition to CMA, Kuza is also licensed by the Retirement Benefits Authority as a retirement plan for its members.
Kuza Money Market Fund Performance
Though Kuza is barely a year old, the money market fund has been doing well against the traditional ‘big boys.’ Here’s a Cytonn Report as of 25th August 2023 showing Kuza rubbing shoulders with the leading money market funds in the country.
The table below ranks Kuza among the top 10.
|Rank||Money Market Fund||Effective Annual Yield (as of 25th August 2023)|
|1||GenAfrica Money Market Fund||13%|
|2||Enwealth Money Market Fund||12.6%|
|3||Cytonn Money Market Fund||12.5%|
|4||Lofty-Corban Money Market Fund||12.4%|
|5||Etica Money Market Fund||12.4%|
|6||Madison Money Market Fund||12.2%|
|7||Jubilee Money Market Fund||12.1%|
|8||Kuza Money Market Fund||12%|
|9||Coop Money Market Fund||11.6%|
|10||Apollo Money Market Fund||11.6%|
It’s worth noting that the 12% highlighted in the table was Kuza’s Effective Annual Yield as of 31st August 2023. That’s the highest the fund has registered over the past two months. On 31st July, for example, the yield rate was 11%, which shows the Kuza curve is on its way up.
Should You Invest in The Kuza Money Market Fund?
All money market funds involve some risk, but that shouldn’t stop you from investing. As for Kuza, here are the reasons the money market fund is worth investing:
1. Good returns
Let’s face it: not many market funds can pay out an effective annual yield rate of 12%, yet that’s what Kuza currently promises. The return rate is undeniably good.
2. Reasonable investment and top-up limits
Even though you’ve to deposit at least Ksh 5,000 to join Kuza and top up at least Ksh 1,000, the amount isn’t too much of an ask. It’s pretty reasonable, you may say.
3. High liquidity
Ordinarily, it takes up to 48 hours (2 business days) to withdraw funds from your Kuza Money Market Fund account. That allows you to become liquid quickly and quickly attend to your pressing financial emergency.
4. Low risk
Kuza targets low-risk securities with the potential for short-term and mid-term growth. Their goal is to preserve capital just as much as they want to grow it, which often involves taking calculated risks.
Their expert team does due diligence to ensure that the fund manager takes up the correct investments and buys the right securities on behalf of its members.
5. Passive income
Kuza distributes its interest income monthly, allowing you to earn something every month, and you don’t have to do anything but invest.
6. Saving culture
You can use a money market fund like Kuza to provoke you to save for whatever money goal. Generally, you can attain your money goal if you are consistent with the top-ups.
That includes saving up for the following:
- Emergency fund
- College fees
- Mortgage deposit
- Car purchase
- Land purchase
- Chama project
- Family welfare
- Staff welfare
Remember, the advantage of saving up with an MMF like Kuza is that your money grows with you. As long as you continue saving, your money will earn interest. And in case you want to withdraw, you get to do it anytime, and you can have your funds in a few days.
There are just not many investment vehicles that can promise such advantages, and Kuza, being one of the best-yielding money market funds in the region, they are indeed a worthy consideration.
How Do You Join the Kuza Money Market Fund?
The process of joining the Kuza is pretty straightforward. Here are the basic steps:
Step 1 – Go to the company website and click on the Application form tab in the top right corner.
Step 2 – Choose between the individual and corporate form, depending on whether you are joining as an individual or group. Download the form and fill it out.
Step 3 – Attach the necessary KYC documents (copy of ID/Passport, pin certificate or tax exemption, proof of bank, proof of investment, and birth certificate in case of a minor).
Step 4 – Make the necessary deposits (a minimum of Ksh 5,000 to join and forward the form to firstname.lastname@example.org.
How to Withdraw Money from Kuza Money Market Fund?
You can withdraw funds from your Kuza MMF account using any of these two options:
- Using the App – Launch the app, tap on Withdraw, and follow the prompts. That will allow you to quickly withdraw funds from Kuza at the tap of a button.
- Using the online portal – You can also withdraw funds using the Kuza online portal. Log into your online account, click withdraw, and follow the prompts.
Kuza Money Market Fund Contact Information
You can contact Kuza to make inquiries on the money market fund using any of these details:
- Head office: Prism Tower, 12th floor, 3rd Ngong’ Avenue, Nairobi
- Box number: 26180 – 00100, Nairobi Kenya
- Email: email@example.com
- Website: www.kuza.africa (online chat)
- Phone: +254 705 666 444
The Kuza Money Market Fund is, without a doubt, a worthy investment if you are looking for a low-risk money market fund vehicle. The returns are also impressive, and you don’t have to break the bank to get started.
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