Etica vs Ziidi Money Market Funds in Kenya (2026 Expert Comparison
Etica vs Ziidi Money Market Funds in Kenya (2026)
An expert-level comparison focused on structure, liquidity, and real outcomes
Money Market Funds (MMFs) in Kenya function best as cash-management tools, not wealth-creation vehicles. Their value lies in how efficiently they balance liquidity, yield, and operational structure.
Two MMFs dominate current investor discussion: Etica Money Market Fund and Ziidi Money Market Fund. Although both are CMA-regulated, they are designed for different cash use-cases.
Fund Structure & Distribution Model
Etica Money Market Fund
Etica MMF is a conventional unit trust accessed via Etica’s platforms (app, USSD, or bank). Liquidity follows standard MMF settlement cycles (typically T+1), allowing the fund manager to optimise yield.
Ziidi Money Market Fund
Ziidi MMF is distributed directly through M-PESA. While still a regulated unit trust, it prioritises embedded, near-instant liquidity, which places a natural ceiling on yield.
Key Metrics Comparison (2026)
| Metric | Etica MMF | Ziidi MMF |
|---|---|---|
| Indicative Annual Yield* | ~11.0% – 11.5% | ~8.5% – 10.0% |
| Minimum Investment | KES 100 | KES 100 |
| Liquidity Timing | T+1 for normal withdrawals; T+1 to T+2 for larger amounts | Near-instant (M-PESA) |
| Primary Orientation | Yield optimisation | Liquidity & convenience |
*Yield ranges reflect observed averages during a high-interest-rate environment (2024–2026). Future yields will adjust with interest-rate cycles.
Underlying Portfolio Differences (Simplified)
- Etica MMF tilts more heavily toward Treasury Bills and negotiated fixed deposits with slightly longer effective duration.
- Ziidi MMF maintains shorter effective duration to preserve real-time liquidity at scale.
Exact allocations vary daily and are disclosed in official fund fact sheets.
Real Earnings Example: Same Capital, Different Outcomes
Assume two investors each invest KES 100,000 and leave the money untouched for 12 months under stable conditions.
| Investor | Fund | Assumed Avg Yield | Approx. Value After 12 Months |
|---|---|---|---|
| Investor A | Etica MMF | 11.3% | KES 111,300 |
| Investor B | Ziidi MMF | 9.2% | KES 109,200 |
Difference: ~KES 2,100 over one year.
This reflects the trade-off between yield optimisation (Etica) and liquidity convenience (Ziidi). Returns are indicative, not guaranteed.
Liquidity Considerations for Larger Etica Withdrawals
For small and medium withdrawals, Etica MMF operates within standard MMF settlement timelines (typically T+1 business day). However, for larger redemption amounts, liquidity follows a more structured process.
- Large withdrawals may settle over T+1 to T+2 business days depending on amount and market conditions.
- This allows the fund manager to unwind Treasury Bills or fixed deposits at maturity or through orderly secondary-market transactions.
- It prevents forced selling, protecting both the withdrawing investor and remaining unit holders.
Etica MMF prioritises capital preservation and yield optimisation over instant liquidity at scale — a trade-off accepted by most institutional and high-value investors.
How Professionals Actually Use MMFs
- Emergency cash: Ziidi MMF (instant access)
- Operating cash (1–6 months): Ziidi or Etica depending on timing needs
- Tactical cash / dry powder: Etica MMF (planned access, higher yield)
This framework matters more than headline returns.
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Disclaimer
This article is for educational purposes only and does not constitute financial advice. All investments carry risk. Past yields are not a guarantee of future returns. Investors should do your research before making investment decisions.
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