Etica Money Market Fund Review (2026): Liquidity, Returns, Fees & Investor Suitability

Last updated: 2026 | Kenya

Money Market Funds (MMFs) have become a core component of short-term investing in Kenya, especially for investors seeking capital stability, daily interest, and fast liquidity. This article provides a clear, professional, and fact-driven review of the Etica Money Market Fund (KES), explaining how it works, how liquid it truly is, expected returns, and where it fits within a serious investment strategy.

This article is part of an ongoing Money Market Fund analysis series published on MoneyMarketHub Kenya.

TL;DR — Etica MMF Summary

  • Minimum investment: KES 100
  • Liquidity: Same-day to 1–2 business days
  • Returns: Market-linked, compounded daily
  • Fees: ~2.0% p.a. (embedded)
  • Regulation: CMA-licensed
  • Best for: Emergency funds, short-term savings, beginners

What Is the Etica Money Market Fund?

The Etica Money Market Fund (KES) is a CMA-regulated collective investment scheme managed by Etica Capital Limited. Its objective is to deliver steady short-term income while preserving capital, primarily through low-risk money market instruments.

Unlike equities or long-duration bond funds, Etica MMF is designed strictly for cash management, not capital appreciation.

Related reading:
Cytonn Money Market Fund Review (2026)

Regulation, Governance & Investor Protection

Etica MMF operates under Kenya’s collective investment framework regulated by the Capital Markets Authority (CMA).

  • Independent custodian and trustee
  • Segregation of investor funds
  • Annual audits and regulatory reporting

While MMFs are not capital-guaranteed, regulatory oversight significantly reduces operational and governance risk.

Related reading:
Sanlam Money Market Fund Kenya (2026)

Where Etica MMF Invests Its Money

  • Government of Kenya Treasury Bills
  • Fixed deposits with tier-one banks
  • High-quality commercial paper
  • Short-dated corporate debt
  • Cash and near-cash instruments

The fund maintains short-duration exposure, helping protect investors from price volatility while supporting liquidity.

Related reading:
How Money Market Funds Work in Kenya

Minimum Investment & Accessibility

  • Initial investment: KES 100
  • Top-ups: From KES 100
  • Lock-in period: None
  • Access: Mobile app and online portal

This structure favors beginners, salary earners, and investors building emergency funds.

Related reading:
Best Money Market Funds for Small Investors in Kenya

Interest, Returns & Compounding Explained

Sources of returns:

  • Interest on Treasury Bills
  • Interest from fixed deposits
  • Discount income on short-term securities

Interest is calculated and credited daily, with returns reflected through NAV appreciation. Published yields are annualized estimates and not guaranteed.

Related reading:
Understanding MMF Interest Rates in Kenya

Liquidity & Withdrawals

  • No notice period
  • No withdrawal penalties
  • Partial or full withdrawals allowed

Small withdrawals are often processed same day or within 24 hours. Larger amounts typically take 1–2 business days.

Related reading:
MMF Liquidity Comparison in Kenya

Fees, Charges & Net Returns

  • Management fee: ~2.0% p.a. (embedded)
  • Entry fee: None
  • Exit fee: None

Any M-PESA or bank transfer charges are transactional and not fund management fees.

Related reading:
Hidden Fees in Kenyan Money Market Funds

Taxation

Interest earned is subject to a 15% withholding tax, deducted at source. Returns received by investors are net of tax.

Risk Analysis

  1. Interest rate risk
  2. Credit risk (mitigated through diversification)
  3. Liquidity risk in extreme market stress
  4. Inflation risk

Frequently Asked Questions (FAQ)

Is Etica Money Market Fund safe?

Etica MMF is regulated by the CMA and invests in low-risk instruments, but it is not capital-guaranteed.

How fast can I withdraw money?

Withdrawals typically take same day to 1–2 business days, depending on amount and payment method.

What is the minimum investment?

The minimum initial investment and top-up is KES 100.

Are returns guaranteed?

No. Returns are market-linked and fluctuate with interest rates.

Is interest taxed?

Yes. A 15% withholding tax applies to interest income.

Final Verdict

The Etica Money Market Fund is best suited for short-term cash management and capital preservation. Its low entry point, daily compounding, and strong liquidity make it ideal for conservative investors and disciplined savers.

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About the Author

Postine Ngeli
Finance Researcher & Money Market Fund Analyst
Founder – MoneyMarketHub Kenya

I analyze Kenyan money market funds using a data-driven, investor-first approach, focusing on liquidity, risk, and real-world usability.

Disclaimer

This article is for educational purposes only and does not constitute personalized financial advice. Investments are subject to market risk, and past performance is not indicative of future results.

© 2026 MoneyMarketHub Kenya. All rights reserved. Unauthorized reproduction or distribution without attribution is prohibited.

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