Kenyan investors are realizing a harsh truth: holding all your money in shillings is like trying to catch water with your bare hands—it slips away faster than you think.
The shilling has been steadily weakening against the U.S. dollar, silently eroding the value of savings.
While traditional KES Money Market Funds (MMFs) remain a strong entry point, more investors are now looking for USD MMFs to hedge against currency volatility.
One of the emerging options is the Lofty-Corban USD Money Market Fund. Though still small compared to giants like CIC and Sanlam, this fund is carving its niche by offering investors a safe, dollar-based savings and investment option.
Backed by Capital Markets Authority (CMA) regulation and trusted custodial structures, it’s designed to preserve capital, provide liquidity, and deliver competitive USD returns.
This article unpacks the fund’s structure, performance, features, risks, and practical uses—so you can decide whether it deserves a place in your portfolio.
Who is Lofty-Corban?
Lofty-Corban is a CMA-licensed fund manager in Kenya. Though relatively young compared to more established players, the firm has built credibility by offering a mix of KES and USD-denominated investment funds tailored for retail investors, diaspora clients, and corporates.
Its philosophy is rooted in capital preservation and financial empowerment, ensuring clients don’t just grow wealth but also protect it. The Lofty-Corban USD MMF is a direct response to the rising demand for safe, dollar-based investments in Kenya.
What is the Lofty-Corban USD Money Market Fund?
The Lofty-Corban USD Money Market Fund (USD MMF) is a collective investment scheme (CIS) that pools money from different investors and invests it in short-term, low-risk, dollar-denominated financial instruments.
The goal is simple but powerful:
- Preserve your capital in USD.
- Generate steady interest through placements in bank deposits, treasury bills, and commercial papers.
- Ensure liquidity with a withdrawal turnaround of just two business days.
Instead of leaving your USD idle in a bank account that pays little to no interest, this fund helps you earn competitive yields while keeping your money safe. Returns are accrued daily, compounded monthly, and reflected in your unit value.
In a country where the shilling has steadily weakened against the dollar, this fund provides an essential currency hedge while delivering income in a globally recognized currency.
Key Facts and Figures (Q2 2025)
According to Lofty-Corban’s Q2 2025 Fact Sheet:
| Feature | Lofty-Corban USD MMF (Q2 2025) |
| Fund Size (AUM) | USD 1.45 million (down from USD 1.65M in Q1) |
| Average Daily Yield (Q2 2025) | 5.13% (Q1: 5.52%) |
| Annual Management Fee | 0.20% |
| Minimum Initial Investment | USD 100 |
| Minimum Top-Up | USD 10 |
| Trustee | KCB Bank Kenya Ltd |
| Custodian | Equity Bank |
| Auditor | Ochako & Associates |
| Withdrawal Turnaround | 2 business days |
| Free Withdrawals | 1 free per month |
This structure makes the fund one of the most affordable entry points for USD investors in Kenya, with just $100 to start and subsequent top-ups as low as $10.
Asset Allocation Strategy
The backbone of any money market fund lies in how it allocates its capital, and Lofty-Corban has been deliberate in constructing its USD MMF to balance safety, liquidity, and yield.
As of June 2025, the fund primarily invested in four categories:
- Bank Deposits (short-term placements):
A large share of the portfolio is placed in fixed deposits with reputable banks. These deposits are dollar-denominated and carefully negotiated to secure the most competitive interest rates.
By working with strong, regulated banks, Lofty-Corban ensures your funds are not only earning but also safe from unnecessary exposure to risky counterparties.
- Government Securities (Treasury Bills):
The fund also invests in short-term U.S. dollar government securities, which provide guaranteed returns backed by sovereign credibility. These securities add another layer of safety while ensuring steady cash flows.
- Commercial Papers:
Select, carefully vetted corporate commercial papers also form part of the fund’s allocation. These are short-term debt instruments issued by strong companies and are included only after rigorous due diligence.
- Other Cash Equivalents:
A small portion is held in cash and near-cash assets to meet liquidity demands. This ensures that when you request a withdrawal, it can be processed without disrupting the broader investment strategy.
This allocation strategy is conservative by design. Lofty-Corban’s focus is not on chasing risky returns but on ensuring capital preservation and liquidity.
The result is a portfolio that steadily compounds your money in USD while keeping risk at minimal levels. For investors, this means peace of mind: your dollars are always working, always safe, and always accessible.
Performance Snapshot
The performance of the Lofty-Corban USD Money Market Fund in Q2 2025 reflects both global economic conditions and the fund manager’s cautious strategy.
- Fund Size Movement:
The fund recorded a decline in assets under management (AUM), shrinking by 12.12% from USD 1.65 million in Q1 2025 to USD 1.45 million in Q2 2025.
While contraction might look worrying on the surface, it is common in emerging funds where investor inflows and outflows can fluctuate as markets adjust.
- Yield Performance:
The fund’s average daily yield stood at 5.13% in Q2 2025, slightly lower than the 5.52% achieved in Q1 2025. This decline mirrors the global environment where the U.S.
Federal Reserve held its policy rates steady at 4.25%–4.5%, signaling stability but also hinting at possible reductions in the second half of 2025.
- Investor Context:
Compared to most USD bank deposits in Kenya, which offer between 2–3% annually, the Lofty-Corban USD MMF still delivers a much stronger yield.
Investors who stayed in the fund throughout the quarter enjoyed compounded daily returns that outperformed traditional USD savings options.
The takeaway is simple: even in a quarter where AUM contracted slightly, the Lofty-Corban USD MMF maintained competitive yields and provided investors with a safe, liquid, and dollar-based return on their capital.
Why Consider the Lofty-Corban USD MMF?
Investing is never just about numbers—it’s about solving real financial problems. The Lofty-Corban USD MMF solves several challenges Kenyan and diaspora investors face:
- Hedge Against Currency Risk: With the Kenyan shilling’s continued depreciation, holding dollars has become more than a choice; it’s a necessity. This fund ensures your wealth isn’t eaten away by local currency weakness.
- Accessibility: With a minimum entry of just USD 100, this is one of the most accessible USD-denominated funds in the market. Investors don’t need to be high-net-worth individuals to start protecting their wealth in hard currency.
- Competitive Returns: Earning 5.13% on average in Q2 2025 makes this fund far superior to USD fixed deposits offered by Kenyan banks, which typically range between 2–3%.
- Liquidity & Flexibility: With a withdrawal turnaround of just two business days and one free withdrawal per month, investors can enjoy both growth and accessibility—something fixed deposits rarely allow.
- Professional Oversight: The fund is overseen by KCB Bank Kenya Ltd (trustee), Equity Bank (custodian), and audited by Ochako & Associates, all under the regulation of the Capital Markets Authority (CMA). This triple oversight structure means your money is not only invested but also safeguarded.
In other words, the Lofty-Corban USD MMF provides security, growth, and convenience in one package.
Who Should Invest?
While every investor can theoretically benefit from exposure to dollars, the Lofty-Corban USD MMF is particularly suited to:
- Diaspora Kenyans: Many Kenyans abroad remit funds back home in USD. Instead of letting these funds sit idle in a non-interest-bearing account, parking them in this fund ensures they earn while awaiting transfer or use.
- Parents with Education Goals: If your children are heading abroad for studies, paying in dollars is inevitable. By saving directly in USD through this fund, you bypass conversion losses and grow your tuition fund safely.
- Importers and Exporters: Businesses engaged in international trade often experience volatility in exchange rates. By holding surplus USD in the Lofty-Corban MMF, they not only preserve capital but also earn a return before making payments.
- Frequent Travelers and Expats: Whether for work, leisure, or medical reasons, maintaining a liquid USD reserve is essential. This fund gives such individuals a safe place to keep travel money while earning interest.
- Wealth Builders Seeking Diversification: For high-net-worth individuals or professionals already invested in KES MMFs, bonds, or equities, this fund adds a much-needed USD layer to balance risk.
Risks and Considerations
No investment is risk-free, and even a conservative option like the Lofty-Corban USD MMF comes with its considerations:
- Currency Conversion Risk: If you eventually need to convert your dollars back into shillings, you may face losses if the KES strengthens against the USD—though history suggests the opposite trend.
- Interest Rate Risk: The fund’s returns depend on prevailing USD interest rates. A reduction in the U.S. Federal Reserve’s benchmark rates could see yields decline.
- Liquidity Risk: While the fund generally processes withdrawals within two business days, extreme market stress could temporarily slow redemptions.
- Fund Manager Execution: Returns depend on the fund manager’s skill in placing deposits and securities. Poor execution, while unlikely under regulation, could impact yields.
- Inflation Risk: Even though you are holding USD, U.S. inflation can reduce the real purchasing power of your returns.
These risks are relatively mild compared to equities, long-term bonds, or real estate. For investors prioritizing stability, the Lofty-Corban USD MMF remains a safe haven.
Practical Use Cases
The true value of any fund lies in its application. Here are practical scenarios where the Lofty-Corban USD MMF shines:
- Tuition Planning: Parents saving for international school fees avoid last-minute forex shocks by accumulating funds directly in USD.
- Corporate Treasury Management: Companies with USD revenue streams can hold surplus cash in the fund, earning interest while awaiting deployment.
- Emergency Preparedness: Medical travel abroad or unforeseen international expenses are easier to handle with a ready USD emergency fund.
- Travel Planning: Frequent travelers can maintain a pool of dollars for trips, earning interest between flights.
- Portfolio Diversification: Investors already exposed to equities, bonds, and KES MMFs use the fund as a stabilizing anchor.
These use cases demonstrate that the Lofty-Corban USD MMF is not just an investment—it’s a financial tool for life’s realities.
How to Invest in Lofty-Corban USD MMF
Getting started with this fund is simple and streamlined:
- Account Opening: Register with Lofty-Corban either directly, via their online platform, or through their distribution partners.
- Documentation: Provide the standard KYC documents—ID/Passport, KRA PIN, and proof of address.
- Initial Investment: Deposit at least USD 100. For ongoing savings, you can top up with as little as USD 10.
- Funding Methods: Deposits can be made via bank transfer, SWIFT, or RTGS into the designated Lofty-Corban USD collection account.
- Earning Returns: Interest accrues daily, is compounded monthly, and is automatically reflected in the fund’s unit value.
- Withdrawals: Redeem funds at any time, with a turnaround of just two business days. One withdrawal per month is free, encouraging investors to stay consistent while enjoying flexibility.
This straightforward process ensures that even first-time investors can access the fund without unnecessary hurdles.
Comparing Lofty-Corban USD MMF with Other Dollar Funds
When measured against other USD MMFs in Kenya, Lofty-Corban stands out for its accessibility and yields:
| Fund | AUM (Q2 2025) | Average Yield | Min. Investment |
| CIC USD MMF | $4.29B | ~5.1% | $1,000 |
| Dry USD MMF | $2.34B | ~4.7% | $500 |
| Jubilee USD MMF | $2.61B | ~4.6% | $1,000 |
| Lofty-Corban USD MMF | $1.45M | 5.13% | $100 |
| Absa USD MMF | $2.30B | ~4.8% | $500 |
Lofty-Corban’s fund may be small in size compared to its competitors, but it compensates with a lower entry threshold and competitive yields, making it attractive for retail and diaspora investors who want to start small but still enjoy dollar exposure.
Read Also: CPF USD Money Market Fund
Growth Opportunities
Several tailwinds position the Lofty-Corban USD MMF for growth:
- Rising Diaspora Remittances: Kenya continues to receive over $5B annually from its diaspora, much of which can be channeled into dollar-denominated investments.
- Increasing Currency Awareness: More investors are recognizing the need to diversify beyond the shilling, boosting demand for USD MMFs.
- Corporate Uptake: Businesses dealing with international trade are looking for efficient ways to manage dollar cash flows—funds like Lofty-Corban’s USD MMF provide an attractive solution.
- Product Expansion Potential: As Lofty-Corban scales, we may see more tailored USD offerings, adding depth to the market.
The fund is small today, but with these opportunities, its growth trajectory could be significant in the coming years.
Frequently Asked Questions (FAQs)
What’s the minimum to invest?
You can start with as little as USD 100, and top up from USD 10.
How are returns calculated?
Returns are accrued daily, compounded monthly, and reflected in your unit value. This means your money grows consistently, without the need for active management.
How safe is my money?
Your funds are placed in low-risk instruments like bank deposits and treasury bills. The structure includes KCB Bank Kenya Ltd as trustee, Equity Bank as custodian, and Ochako & Associates as auditor, with CMA providing regulatory oversight.
How quickly can I withdraw?
Withdrawals are processed within two business days. Additionally, investors enjoy one free withdrawal per month.
How does it compare to USD bank deposits?
While most banks in Kenya pay only 2–3% on USD deposits, the Lofty-Corban USD MMF averaged 5.13% in Q2 2025. On top of that, it offers flexibility and liquidity that fixed deposits cannot match.
Conclusion: Should You Invest?
The Lofty-Corban USD Money Market Fund may be a smaller player in Kenya’s dollar investment space, but it offers something many of its larger peers don’t: accessibility without compromise on returns.
With just USD 100, investors can enjoy dollar-denominated returns, capital preservation, and liquidity—backed by strong custodial and regulatory frameworks.
For individuals seeking to protect their wealth from shilling depreciation, for parents planning to pay tuition abroad, for businesses managing USD cash flows, or for anyone simply looking to diversify into hard currency, this fund is an effective, practical solution.
In a world where the shilling weakens year after year, the smart investor’s question isn’t “Should I invest in USD?” but rather “Where should I place my USD for safety and returns?”
And the Lofty-Corban USD Money Market Fund stands as one of the answers. Visit Lofty-Corban’s website to explore how you can begin your journey today.
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