Is my money market fund safe?
By Arnold Ochieng · Money market funds hub · paybillke is an independent guide and is not affiliated with any fund manager.
A CMA-approved money market fund is one of the lower-risk places to keep cash in Kenya, but it is not risk-free. Your money is held by a separate custodian bank, not the fund manager, and the fund holds short-term government and bank debt. It is not covered by the Kenya Deposit Insurance Corporation, and fund rules allow withdrawals to be paused in rare cases.
6 checks before you invest
- Is the fund on the CMA's approved list? Search the CMA's list of licensed fund managers and approved collective investment schemes. If it is not there, do not invest.
- Is it the fund, or another product from the same company? Some managers sell unregulated notes or "high yield" products next to their regulated MMF. Check that your money goes into the named MMF.
- Who is the custodian? It should be a bank separate from the manager. It is in the fund's fact sheet or information memorandum.
- Is the yield far above the pack? When one fund pays several points more than the 9.3% October 2026 average, ask what it holds. A higher yield usually means riskier holdings. Fund-site banners are not a dated figure; use the factsheet.
- How big is the fund? Larger funds can meet withdrawals more easily. The fund's factsheet gives its size.
- Is the paybill on the manager's own site? Only pay into numbers listed on the fund's official site, or on our list. Never pay a number someone sends you on WhatsApp.
What can go wrong
- A borrower defaults. If a bank or company the fund lent to cannot pay, the fund's unit price can drop.
- Withdrawals are suspended. Fund rules allow managers to pause withdrawals in certain circumstances, and Madison's own statutory disclaimer says so.
- The CMA does not stand behind the fund. Fund disclaimers state that the CMA takes no responsibility for a scheme's financial soundness.
- You are scammed. Fake fund agents and lookalike paybills are a bigger risk than the fund itself. See paybill scams.
What's changing
The CMA is weighing ratings for unit trust funds and their managers, covering asset quality, liquidity, volatility, foreign-currency exposure and governance (TechTrendsKE, 19 October 2026). Once ratings are published, we will add them to the rates table.
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Frequently asked
Can I lose money in a money market fund?
It is rare, but yes. A borrower in the portfolio could default, or redemptions could be suspended. MMFs are not covered by the Kenya Deposit Insurance Corporation.
Is my MMF covered by KDIC?
No. KDIC covers bank deposits up to a limit. A money market fund is a collective investment scheme regulated by the CMA, and its assets are held by a custodian instead.