Kenya
Market Outlook
Comprehensive coverage of Money Market Funds, Government Bonds, Fixed Deposits, and Real Estate — with trend analysis, top-performer tracking and investor guidance for Q1 2026.
| # | Fund | Yield p.a. | Trend |
|---|---|---|---|
| 1 | Cytonn MMF | 11.43% | ▼ 40bps Jan |
| 2 | Nabo Africa MMF | 11.20% | ▼ 81bps Jan |
| 3 | Lofty Corban MMF | 10.72% | ▼ 35bps Jan |
| 4 | Kuza MMF | 10.43% | ▼ 32bps Jan |
| 5 | GenAfrica / Jubilee | 10.25% | = Stable |
| 6 | Old Mutual MMF | 10.08% | = Stable |
| 7 | Britam MMF | 9.73% | ▼ 12bps |
| 8 | KCB MMF | 9.23% | = Stable |
| 9 | CIC / Co-op / ICEA | 8.28–8.49% | ▼ minor |
| 10 | NCBA Fixed Income | 8.00% | = Stable |
| ⚠ | Equity MMF | 3.93% | ▲ 11bps |
On a KES 1 million position held for one year, choosing Equity MMF (3.93%) over Cytonn (11.43%) costs KES 75,000 in foregone yield. There is no data-based rationale for this choice — MMFs offer daily liquidity across all funds.
Top-tier funds have compressed 35–81 bps since January 2026, tracking CBK's monetary easing trajectory. Nabo Africa shows the most volatility (peaked at 12.79% in mid-January). Locking in longer-duration IFBs now hedges against further compression.
🏆 Top Infrastructure Bonds (Tax-Free) — March 2026
Kenya's Infrastructure Bonds carry a 0% withholding tax, meaning every basis point of gross yield translates directly to investor returns. A T-Bond at 12.75% gross yields only 11.48% after the standard 10% WHT — making even lower-coupon IFBs superior on a like-for-like basis. For any investor in the 10% WHT bracket, the IFB universe is the most efficient fixed-income allocation in Kenya.
| Bank | 3 Mo | 6 Mo | 12 Mo | Min Dep |
|---|---|---|---|---|
| I&M Bank ⭐ | 8.0% | 9.5% | 11.0% | 50K |
| NCBA Bank ⭐ | 8.0% | 9.0% | 11.0% | 100K |
| Co-op Bank | 8.5% | 9.5% | 10.5% | 50K |
| DTB Bank | 8.5% | 9.5% | 10.5% | 100K |
| Equity Bank | 8.0% | 9.0% | 10.0% | 50K |
| Stanchart | 7.5% | 8.5% | 9.5% | 250K |
| Absa Kenya | 8.5% | 9.5% | 10.5% | 100K |
| KCB Bank | 7.5% | 8.5% | 10.0% | 50K |
Top MMFs (11.43%) currently beat the best FD rates (11.00%) by 43 bps while offering daily liquidity vs 3–12 month lock-up. However, FDs guarantee the rate for the tenor — useful if CBK cuts rates, which would compress MMF yields. For rate-lock certainty, the I&M / NCBA 12-month FD is the best available.
🏆 Land — Top Performing Areas
| # | Area | County | Category | Annual Appreciation | Cumulative | Price/Acre (KES) |
|---|---|---|---|---|---|---|
| 1 | Juja | Nairobi | Residential/Student | 15.5% | 80% | 25,500,000 |
| 2 | Mlolongo | Nairobi | Residential | 14.9% | 75% | 35,000,000 |
| 3 | Syokimau | Nairobi | Residential | 14.4% | 70% | 39,900,000 |
| 4 | Spring Valley | Nairobi | Residential | 13.3% | 55% | 305,900,000 |
| 5 | Ruiru | Nairobi | Residential | 13.1% | 68% | 30,000,000 |
| 6 | Ruaka | Nairobi | Residential | 8.5% | 65% | 111,100,000 |
| 7 | Diani | Kwale | Tourism/Resi | 7.5% | 50% | 15,000,000 |
The data is unambiguous: Juja (15.5%), Mlolongo (14.9%), Syokimau (14.4%), and Ruiru (13.1%) are all peripheral Nairobi satellite towns outperforming established prime areas. These areas benefit from SGR connectivity, ongoing infrastructure investment, and population overspill from a congested CBD. For budget-conscious investors (entry at KES 25–40M/acre vs 300M+ in Spring Valley), satellite towns offer superior total returns with lower capital outlay.
The optimal Kenya portfolio in Q2 2026 positions 35–45% in IFBs (lock in tax-free yield before CBK cuts), 20–30% in top-tier MMFs (Cytonn/Nabo as liquidity buffer), 20–25% in satellite land (Juja/Syokimau, 5+ years), and 10–15% in rental apartments for blended income + appreciation. Fixed deposits make sense only if CBK eases aggressively before Q3 2026. Data-driven. Discipline-first.
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