Sanlam Money Market Fund Kenya 2026 – Interest Rates, Fees, Liquidity & Full Review
Sanlam Money Market Fund (MMF) in Kenya – Full Expert Guide 2026
The Sanlam Money Market Fund (MMF) is a low-risk investment option in Kenya designed for investors seeking capital preservation, steady income, and high liquidity. This guide explains how the fund works, its interest performance, fees, withdrawal timelines, taxation, and what makes it stand out.
What Is a Money Market Fund?
A money market fund pools investor funds and invests them in short-term, low-risk instruments such as Treasury bills, bank deposits, and high-quality corporate paper. The goal is to preserve capital while earning interest.
Sanlam MMF is regulated by the Capital Markets Authority (CMA) of Kenya.
Minimum Investment and Top-Ups
- Minimum initial investment: KES 2,500
- Minimum top-up: KES 1,000
- Lock-in period: None
Interest Rates & Performance
Interest is calculated daily and compounded monthly. Returns change with market interest rates.
- 1-year return (2024): ~14.8% p.a.
- 3-year average return: ~11.8% p.a.
- 5-year average return: ~10.8% p.a.
- Net effective yield (2025): ~10.3% p.a. before tax
Gross vs Net Returns (What Investors Actually Earn)
Gross yields show portfolio performance. Net yields reflect what investors actually receive after management fees and withholding tax.
Liquidity & Withdrawals
- M-Pesa withdrawals: Same day (within limits)
- Bank withdrawals: 2–3 working days
- One free withdrawal per calendar month
- KES 500 fee for additional withdrawals within the same month
Where Sanlam MMF Invests
- Government Treasury bills
- Bank fixed and call deposits
- High-quality short-term corporate debt
Risks to Understand
- Returns fluctuate with interest rates
- Money market funds are not bank deposits
- No deposit insurance cover
Who Should Invest?
- Conservative investors
- Emergency fund holders
- Short-term cash savers
Conclusion
Sanlam Money Market Fund offers a disciplined balance of safety, liquidity, and competitive returns. Its transparent structure, professional management, and CMA regulation make it a solid choice for Kenyan investors.
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Disclaimer
This article is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results.
About the Author
Postine Ngeli is the founder of Money Market Hub Kenya, focused on providing accurate, practical, and unbiased investment education for Kenyan investors.
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