If you’ve ever wished to preserve the value of your money in U.S. dollars while still earning stable returns, the Nabo USD Money Market Fund is one of Kenya’s most reliable options in 2025.
Managed by Nabo Capital, a licensed and reputable fund manager under the Capital Markets Authority (CMA), this fund provides investors with a safe, liquid, and high-yielding USD-denominated investment vehicle.
With the Kenya shilling having experienced significant volatility in recent years, many high-net-worth individuals, diaspora investors, and local corporates are now turning to USD Money Market Funds to hedge against currency depreciation while maintaining steady income.
Among the top players in this niche—such as CIC USD MMF, NCBA USD Fixed Income Fund, Dry Associates USD MMF, and Jubilee USD MMF—Nabo USD Money Market Fund continues to carve its position as a solid, transparent, and high-quality dollar fund.
Understanding the Nabo USD Money Market Fund
The Nabo USD Money Market Fund is part of Nabo Africa Funds, a Collective Investment Scheme that allows investors to pool their resources and invest in short-term, dollar-denominated instruments.
Fund Objective
The fund aims to:
- Preserve capital in USD
- Provide liquidity
- Generate competitive returns through investment in short-term, high-quality U.S. dollar-denominated money market instruments
It is ideal for investors who earn or hold U.S. dollars and want to maintain the value of their money without converting to Kenya shillings.
Investment Strategy
According to Nabo Capital’s official site, the fund primarily invests in:
- U.S. Dollar fixed deposits in top-tier local and regional banks
- Dollar-denominated Treasury bills and bonds
- Short-term corporate debt and call deposits
These instruments are carefully selected to balance risk, liquidity, and return, ensuring the fund maintains a stable NAV (Net Asset Value) of USD 1 per unit.
Key Features of the Fund
| Feature | Details (as of June 2025) |
| Fund Manager | Nabo Capital Limited |
| Fund Type | USD-denominated Money Market Fund |
| Regulator | Capital Markets Authority (CMA) |
| Custodian | Standard Chartered Bank Kenya |
| Trustee | Co-operative Bank of Kenya |
| Minimum Investment | USD 100 |
| Minimum Top-up | USD 50 |
| Effective Annual Yield (June 2025) | 5.25% per annum |
| Management Fee | 1.5% per annum (charged daily) |
| Liquidity | Daily access — withdrawals processed within 2–3 business days |
| Currency | U.S. Dollar (USD) |
| Net Asset Value (NAV) | USD 1 per unit |
| Reinvestment Option | Earnings auto-reinvested monthly |
Fund Performance and Market Standing (as of Q2 2025)
Based on the CIS Quarterly Report for the period ended June 30, 2025, the Nabo USD Money Market Fund reported an AUM (Assets Under Management) of Kshs. 577.3 million, equivalent to approximately USD 4.5 million.
This positions it among the top 15 foreign currency-denominated funds in Kenya, alongside giants such as CIC, NCBA, Dry Associates, and Jubilee.
Nabo USD Money Market Fund in the Context of Kenya’s USD Funds (Q2 2025)
| Fund Name | Fund Manager | Fund Type | AUM (Kshs.) | Market Share (USD Funds) |
| CIC USD Money Market Fund | CIC Asset Management | MMF | 4.29 Billion | 6.9% |
| NCBA USD Fixed Income Fund | NCBA Investment Bank | FIF | 6.6 Billion | 10.6% |
| Dry Associates USD MMF | Dry Associates | MMF | 2.34 Billion | 3.8% |
| Jubilee USD MMF | Jubilee Asset Managers | MMF | 2.61 Billion | 4.2% |
| Nabo USD MMF | Nabo Capital | MMF | 577 Million | 0.9% |
| Etica USD MMF | Etica Capital | MMF | 359 Million | 0.6% |
| Kuza USD MMF | Kuza Asset Management | MMF | 240 Million | 0.4% |
| Old Mutual USD MMF | Old Mutual Investment Group | MMF | 1.44 Billion | 2.3% |
Source: CMA Collective Investment Schemes Report, Q2 2025
While it’s smaller in size compared to the major USD funds, Nabo USD MMF stands out for its professional portfolio management, competitive yield, and transparency in reporting performance updates through its monthly fact sheets.
How the Fund Works
When you invest in the Nabo USD Money Market Fund, your money is pooled with that of other investors and placed in low-risk, short-term USD assets such as:
- Treasury bills and bonds issued or guaranteed in USD
- Dollar call and fixed deposits in reputable banks
- High-grade commercial papers denominated in USD
Returns accrue daily and are compounded monthly, meaning your interest earns more interest over time — a simple but powerful concept called compounding.
Your units remain valued at USD 1, but your unit count increases as interest is credited, reflecting your earnings growth transparently.
Why Investors Choose Nabo USD Money Market Fund
The Nabo USD Fund is attractive for several reasons. Here are the key benefits:
1. Dollar Stability
Investing in USD shields your savings from local currency depreciation. If the shilling weakens, your dollar value remains intact — a smart hedge for anyone earning in Kenya shillings but saving for international goals.
2. Consistent Returns
While traditional USD bank deposits in Kenya earn around 1–3%, Nabo USD MMF yields approximately 5%, offering higher returns with minimal additional risk.
3. Professional Management
The fund is managed by a skilled investment team with over a decade of experience handling regional fixed income and currency portfolios.
4. Liquidity and Flexibility
You can redeem your funds anytime, usually within 2–3 business days — perfect for short-term dollar parking or building emergency funds in USD.
5. Accessibility
The fund is open to both local and diaspora investors, with an initial deposit as low as USD 100. Top-ups can be done through direct USD transfers or global payment options.
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Who Should Invest in the Nabo USD Money Market Fund?
This fund is ideal for:
- Diaspora investors remitting funds to Kenya but wanting to maintain them in USD
- Corporates and NGOs with USD inflows seeking to earn interest before deployment
- Individuals saving for foreign expenses such as tuition, travel, or property purchases
- High-net-worth investors diversifying their portfolio currency exposure
- Anyone seeking a conservative USD investment option with better yields than traditional deposits
In essence, it’s perfect for those who value capital preservation, liquidity, and modest growth.
Risk Profile and Safety
Like all money market funds, the Nabo USD Money Market Fund carries low risk, but not zero risk.
Key Risks to Note
- Interest Rate Risk: Returns may fluctuate if global USD interest rates shift.
- Currency Risk: Though the fund is USD-denominated, investors converting from KES will still face exchange rate movement risk.
- Credit Risk: Minimal but present; mitigated by investing only in top-tier, highly rated banks and government securities.
Risk Mitigation
- The fund maintains strict investment limits under CMA guidelines.
- Assets are diversified across multiple banks and instruments.
- Independent oversight by the trustee (Co-operative Bank) and custodian (Standard Chartered Bank) ensures transparency.
Returns and Yield Trend
According to Nabo Capital’s published performance updates, the effective annual yield for the USD Money Market Fund has ranged between 4.8% and 5.5% throughout 2025.
This compares favorably with competitors, as shown below:
| Fund (USD) | Average Annual Yield (2025) | Minimum Investment | Liquidity |
| CIC USD MMF | 5.10% | $100 | 48 hours |
| NCBA USD FIF | 5.20% | $1,000 | 3–5 days |
| Dry Associates USD MMF | 5.30% | $100 | 2 days |
| Jubilee USD MMF | 5.00% | $100 | 2 days |
| Nabo USD MMF | 5.25% | $100 | 2–3 days |
The returns are net of management fees, and interest is credited monthly — giving investors the benefit of compounding growth while maintaining full access to their capital.
Comparison Snapshot — Nabo USD MMF vs KES MMF
| Feature | Nabo USD MMF | Nabo KES MMF |
| Currency | USD | Kenya Shilling |
| Effective Annual Yield (June 2025) | 5.25% | 12.03% |
| Minimum Investment | USD 100 | KES 1,000 |
| Risk Level | Low | Low |
| Liquidity | 2–3 days | 1–2 days |
| Best For | Dollar investors, diaspora, corporates | Local investors, short-term savers |
| Objective | Capital preservation in USD | Income generation and liquidity in KES |
While the Kenya shilling fund offers higher nominal returns, the USD fund’s strength lies in currency protection — particularly during times of local currency volatility.
How to Invest in Nabo USD Money Market Fund
Investing is simple and can be done from anywhere in the world.
Step 1: Open an Account
Visit the Nabo Capital website and select the Nabo USD Money Market Fund. You’ll be guided through an online onboarding process.
Step 2: Submit KYC Documents
Upload a copy of your ID or passport, KRA PIN (for Kenyan residents), and proof of address. For corporate clients, additional documents such as incorporation certificates are required.
Step 3: Fund Your Account
Deposit your investment in USD directly to Nabo’s designated USD bank account (details provided during registration).
Step 4: Track and Withdraw Anytime
Once invested, you can track your returns via Nabo’s investor portal. Withdrawals are processed within 48–72 hours.
Why Nabo Capital?
Nabo Capital, part of Centum Investment Group, is one of the region’s leading fund managers with a strong track record in both local and foreign currency portfolios.
With over Kshs. 8.47 billion in total AUM as of June 2025, Nabo is ranked among Kenya’s top 15 fund managers by size.
Their philosophy centers on:
- Capital preservation
- Prudent diversification
- Transparency and regular reporting
These values are especially important for foreign currency investors who require clarity and confidence in their fund manager.
Risks vs Rewards — Is It Worth It?
If your goal is to protect your wealth from currency erosion while still earning stable returns, the Nabo USD MMF is a worthy consideration.
It won’t make you rich overnight — but it will preserve your dollar purchasing power, beat inflation, and provide flexible access to your cash whenever you need it.
It’s a great way to build a dollar-based emergency fund, save for international expenses, or simply park your funds in a safe, interest-earning account.
Conclusion
The Nabo USD Money Market Fund offers Kenyan and diaspora investors an excellent balance between safety, liquidity, and competitive USD returns.
In an economy where the shilling continues to weaken and inflation eats into savings, having a portion of your portfolio in USD-denominated instruments is both wise and strategic.
Nabo Capital provides a professional platform to do this — giving you access to institutional-grade money management, even as a small investor starting with just $100.
If you’re seeking stability, flexibility, and peace of mind, the Nabo USD MMF is a fund worth adding to your portfolio today.
Before You Go!
Frequently Asked Questions
What is the minimum investment amount in Nabo USD Money Market Fund?
You can start with USD 100 and top up with as little as USD 50 thereafter.
How are returns paid?
Interest is accrued daily and compounded monthly. You can choose to reinvest your earnings or withdraw them.
How safe is my investment?
The fund invests in short-term, low-risk USD instruments and is regulated by the Capital Markets Authority. Your money is also held by an independent custodian bank.
Can I withdraw my money anytime?
Yes. Withdrawals are processed within 2–3 business days, making it suitable for short-term liquidity needs.
Who can invest in the Nabo USD MMF?
Both local and international investors, including Kenyans in the diaspora, can invest through bank transfers or international payment channels.
