The Old Mutual Dollar Money Market Fund has become one of the most talked-about solutions in Kenya’s investment landscape—and for good reason. With the Kenyan shilling losing value year after year, many investors are asking themselves how to preserve wealth in a currency that keeps sliding.
For parents paying school fees abroad, for businesses importing goods, and for diaspora Kenyans remitting dollars back home, the challenge is the same: how do you make your money work while keeping it safe in dollars?
If you’ve observed the market, you know the painful truth. Every year, the shilling buys you less. What used to cost Ksh 100 is now 120, sometimes even 150. Inflation is relentless, and the forex exchange gap keeps widening. This isn’t just a national statistic—it’s a lived reality for every Kenyan with dollar-related expenses.
That’s why more and more investors are turning to dollar-denominated funds. And among the best, the Old Mutual Dollar Money Market Fund stands out as a reliable, safe, and liquid option backed by one of the world’s most trusted financial brands.
In this article, we’ll dig deep into how the fund works, its performance, who should invest, risks to be aware of, and why it could be the dollar anchor your portfolio has been waiting for.
Understanding the Old Mutual Dollar Money Market Fund
At its core, the Old Mutual Dollar Money Market Fund (OM USD MMF) is a collective investment scheme (CIS) that pools together dollars from different investors and invests in short-term, high-quality instruments. These include U.S. treasury bills, fixed deposits with top-rated banks, and other dollar-denominated securities.
Unlike the more common shilling-based money market funds, this one operates fully in USD. That means if you invest in dollars, you also earn your interest in dollars, and you can withdraw in dollars. For anyone with recurring USD obligations, it offers a perfect match.
Old Mutual itself is no lightweight. Globally, the group has more than 175 years of financial experience. In Kenya, it is a trusted household name managing billions across various unit trust schemes.
As of June 2025, the Old Mutual Unit Trust Scheme controlled Ksh 23.4 billion in assets, representing a 3.9% share of Kenya’s CIS market. Within this, the Dollar MMF alone managed USD 1.44 billion, making it a serious contender in the foreign currency investment space.
Performance Snapshot: Where the Fund Stands Today
Performance is where many investors start, and rightly so. You want to know how a fund is performing relative to others in the market.
As of June 2025, the Old Mutual Dollar Money Market Fund had USD 1.44 billion in assets under management (AUM). This marks a steady rise from USD 1.03 billion in December 2024, showing that investors are increasingly trusting Old Mutual with their dollar savings.
But how does it compare with other USD MMFs?
| Fund | AUM (June 2025) | Growth Trend | Market Position |
| CIC Dollar MMF | USD 4.29B | Strong leader | Market leader |
| Jubilee Dollar MMF | USD 2.61B | Fastest growth in 2025 | Top 3 |
| Dry Associates USD MMF | USD 2.34B | Stable growth | Mid-tier |
| Absa Dollar MMF | USD 2.30B | Expanding steadily | Mid-tier |
| Old Mutual Dollar MMF | USD 1.44B | Double-digit growth since Dec 2024 | Growing |
Also Read: Etica Money Market Fund USD – Complete Guide
Clearly, CIC dominates, but Old Mutual has carved out a niche as a trusted, globally backed brand with steady growth.
Looking at the bigger picture, foreign currency-denominated funds (mostly USD) now hold KSh 62.1 billion in assets, which is 10% of the entire CIS industry in Kenya.
Just a year ago, in June 2024, they held Ksh 23.8 billion. That’s a 160% increase in one year—proving that Kenyans are rapidly shifting into dollar investments.
The Old Mutual Dollar MMF is part of this growth wave, riding investor demand for safe, liquid USD-based solutions. Its AUM growth, though smaller compared to giants like CIC, signals stability, trust, and sustainable expansion. For conservative investors, that’s a very good sign.
Is a Dollar Money Market Fund Worth It?
Why not just hold your money in a USD bank account? Why go through a fund? Here are the reasons that make a dollar MMF so attractive:
1. Protection Against Shilling Depreciation
The Kenyan shilling has lost over 50% of its value in the last decade. This trend isn’t slowing down. A dollar MMF shields you from these losses by keeping your capital in USD.
2. Global Purchasing Power
Your child’s tuition in the U.S. isn’t billed in shillings. Your imports from Dubai aren’t priced in KES. By holding money in USD, you match your liabilities with your assets, ensuring stability.
3. Liquidity and Safety
Unlike dollar fixed deposits that lock you in for months, an MMF allows easy withdrawals. This makes it ideal for both short-term and medium-term needs.
4. Remittance Advantage
Diaspora Kenyans can send dollars directly into the fund. Instead of converting into KES (and losing on forex spreads), you keep your money in dollars and earn returns.
5. Returns vs. Bank Accounts
Most USD bank accounts in Kenya pay zero or near-zero interest. In contrast, the Old Mutual Dollar MMF offers competitive, market-driven yields. The effective annual rate, for instance, at the time of creating this blog post was 5.18%, which is quite decent.
6. Peace of Mind
Unlike forex trading or speculative investments, this is conservative, CMA-regulated, and trustee-managed. You sleep easily knowing your dollars are safe.
Key Features of the Old Mutual Dollar Money Market Fund
Here’s what sets the Old Mutual Dollar MMF apart:
- Minimum Investment: Relatively accessible compared to other USD funds, making it open to both professionals and corporates. The minimum investment is $100 (USD) and a similar top-up limit.
- Liquidity: Withdrawals are processed quickly, often within 3–5 working days.
- Daily Returns: Income is accrued daily and compounded monthly, so your dollars are constantly working for you. The daily yield rate at the time of writing, for example, was 5.05%.
- Low Risk Profile: The fund invests only in high-quality short-term instruments—think fixed deposits with strong banks and government securities.
- Professional Management: Run by Old Mutual’s asset management team with decades of global experience.
- Transparency: Daily unit prices are published on Old Mutual’s Fund Prices Page.
- CMA Regulation: The fund is licensed and overseen by Kenya’s Capital Markets Authority, with trustees safeguarding investor interests.
Together, these features make it not just a safe place to hold dollars, but also a smart one—balancing liquidity, safety, and consistent returns.
How the Old Mutual Dollar Money Market Fund Works
The mechanism is simple yet effective. Investors pool their dollars, which are then allocated into a diversified portfolio of safe instruments:
- 31% Cash & Demand Deposits – for liquidity.
- 34% Government Securities – typically short-term T-bills.
- 20% Fixed Deposits – with reputable commercial banks.
- 15% Offshore Investments – for additional diversification.
This blend ensures three things:
- Capital Preservation – your dollars are protected.
- Consistent Returns – short-term interest-bearing assets deliver steady yields.
- Liquidity – a buffer of cash ensures withdrawals can be honored promptly.
Unlike equity or special funds, MMFs don’t gamble on volatility. The fund’s role is simple: keep your money safe, accessible, and growing modestly in USD.
Who Should Invest in the Old Mutual Dollar Money Market Fund?
The Old Mutual Dollar Money Market Fund isn’t just for one type of investor—it’s a versatile solution designed for anyone who needs stability in USD.
Diaspora Kenyans
Imagine sending money home every month, only to see it quickly converted into shillings and eroded by depreciation. With Old Mutual’s Dollar MMF, diaspora Kenyans can remit funds directly in USD, keep them invested, and withdraw when needed. This means your family gets more value, and your remittances aren’t quietly eaten away by currency fluctuations.
Parents Paying School Fees Abroad
Education is one of the biggest financial commitments for families. If you’re paying tuition in the U.S., UK, Canada, or Australia, keeping your savings in shillings is risky. Fees don’t wait for exchange rates to stabilize. By investing in the Dollar MMF, you lock savings in the same currency as your obligation, ensuring predictability and peace of mind.
Importers & Exporters
Businesses trading across borders face constant forex risk. One day you’re budgeting $50,000 for imports, the next week the same order costs much more in shillings. By holding reserves in the Old Mutual Dollar MMF, importers and exporters can manage working capital in USD while earning returns on idle cash.
Professionals Preparing to Relocate
Planning to relocate to the diaspora? A dollar fund is the smartest cushion. Instead of holding money in KES and praying the rate won’t bite you later, you can build up a dollar reserve today. This gives you a head start when transitioning to a new life abroad.
High-Net-Worth Individuals
Wealthy investors understand the rule of diversification: never put all your eggs in one basket, and never in one currency. For those already invested in Kenyan real estate, equities, or shilling MMFs, adding a USD MMF balances the portfolio against local risks.
SMEs and Corporates
Many businesses hold surplus liquidity for payroll, supplier payments, or expansion. Leaving this cash in a non-interest-bearing USD account is wasteful. By placing it in the Old Mutual Dollar MMF, SMEs and corporates can preserve liquidity while earning competitive returns.
In short, if you deal with dollars in any way—earning, spending, or remitting—this fund isn’t just an option. It’s a necessity.
Risks and Considerations
Let’s be clear: no investment is 100% risk-free. Even a dollar money market fund has considerations investors must weigh. Here’s what you should know:
- Currency Risk
While rare, if the Kenyan shilling were to strengthen significantly against the USD, your dollar holdings could lose value when converted back into shillings. For investors with dollar expenses, this isn’t an issue, but it matters if your ultimate needs are in KES.
- Inflation Risk
The fund preserves and grows your dollars, but U.S. inflation could eat into real returns. For example, if the fund yields 3% annually but inflation in the U.S. is 4%, your purchasing power technically shrinks. This is why many use the fund for medium-term needs rather than very long-term wealth growth.
- Opportunity Cost
Dollar MMFs are conservative. They prioritize safety and liquidity. But this means returns are often lower than other USD options like fixed income funds or high-yield special funds. You trade higher returns for peace of mind and instant access.
- Liquidity Shocks
Though rare, during extreme events (say, a global credit crunch), large redemptions could strain fund liquidity. The CMA, however, has strict guidelines to ensure buffers are in place, and Old Mutual actively manages cash flow to handle withdrawals.
The upside? Old Mutual’s robust governance, trustee oversight, and CMA regulation significantly mitigate these risks. This makes the fund one of the safest dollar investment channels in Kenya today.
How to Invest in Old Mutual Dollar MMF
Getting started is straightforward. Here’s a step-by-step breakdown:
- Open an Account
- Provide basic documents: National ID or Passport, KRA PIN, and bank account details.
- For corporates: company registration documents and board resolutions are needed.
- Provide basic documents: National ID or Passport, KRA PIN, and bank account details.
- Fund Your Account
- Make your first deposit in USD via bank transfer, forex transactions, or diaspora remittances. ($100 minimum)
- The minimum investment is kept accessible, ensuring professionals, SMEs, and corporates can all participate.
- Make your first deposit in USD via bank transfer, forex transactions, or diaspora remittances. ($100 minimum)
- Track Your Returns
- Old Mutual updates daily unit prices on their Fund Prices Page.
- You can monitor your investment in real-time through the investor portal.
- Old Mutual updates daily unit prices on their Fund Prices Page.
- Withdraw When Needed
- Requests are processed within 3–5 working days.
- Funds are paid out in USD, directly to your bank account.
- Requests are processed within 3–5 working days.
With Old Mutual’s wide branch network and digital support, the process is smooth for both local and diaspora investors.
Growth Opportunities for Investors
The future of USD MMFs in Kenya is massive. Here’s why:
- Rising Popularity of Dollar Funds
In just one year (June 2024 to June 2025), foreign currency funds grew from Ksh 23.8 billion to Ksh 62.1 billion in AUM. That’s a 160% surge—proof that investors are moving to USD en masse.
- CMA Approvals Are Increasing
More players are entering the market, boosting competition and innovation. Old Mutual, with its global brand, is well-placed to capture this growth.
- Diaspora Remittances Are at Record Levels
Kenya’s diaspora sent home over $5 billion in 2024, a figure expected to grow. USD MMFs provide the perfect home for these inflows.
- SME and Corporate Adoption
Businesses are learning that idle USD in current accounts is wasted potential. Moving it to MMFs is becoming standard treasury practice.
- Fintech Integration
Expect easier access through mobile money, apps, and online platforms. This will make dollar funds more accessible to everyday investors.
All these trends mean one thing: early adopters of USD MMFs like Old Mutual will be ahead of the curve, enjoying liquidity, safety, and growth in hard currency.
FAQs
What is the minimum investment for the Old Mutual Dollar MMF?
The fund keeps its minimum entry level accessible. While exact figures vary, it’s designed to allow both individuals and businesses to participate. Always confirm the latest thresholds on Old Mutual’s website or branch offices.
How safe is my money in this fund?
Very safe. The fund invests only in high-quality short-term instruments such as treasury bills and fixed deposits with top-tier banks. Oversight by the CMA and trustees ensures your capital is well-protected.
How often are returns paid out?
Returns are accrued daily and compounded monthly, meaning your dollars grow continuously. You don’t have to wait until year-end to benefit.
Can I invest in the Old Mutual Dollar MMF from abroad?
Yes. Diaspora Kenyans can remit money directly into the fund. It’s one of the easiest ways to send money home, keep it in USD, and still earn a return.
How does it compare with holding USD in a bank account?
Bank accounts often pay little or no interest on dollar deposits. The Old Mutual Dollar MMF puts your money to work, delivering returns while keeping them liquid and safe. It’s the smarter alternative to idle cash.
Ready to Protect Your Dollars the Smart Way?
The writing is on the wall. The Kenyan shilling will continue to face pressure, and those who fail to hedge in hard currency will watch their wealth quietly erode.
The Old Mutual Dollar Money Market Fund offers you a simple, safe, and effective way to build and preserve your dollar wealth. Whether you’re paying tuition abroad, running a dollar-based business, or sending money from the diaspora, this fund is designed for you.
So, the question is: Will you let your dollars sit idle, or will you put them to work with Old Mutual?
