Investing
CIC Money Market Fund Review 2026: Yield, Fees, Minimums and How to Invest
The CIC Money Market Fund is a low-risk, liquid Kenyan unit trust with a KES 5,000 minimum. Here is what the published 8.43% really means, the 2% fee, what is left after 15% tax, and how to invest.
- Effective annual rate
- 8.43%
- Fee
- 2%
- Minimum
- KES 5,000
- Withholding tax
- 15%
The fund at a glance
The CIC Money Market Fund is a unit trust run by CIC Asset Management and regulated by the Capital Markets Authority. It aims to preserve capital and pay interest from short-term investments. CIC rates it low risk. Interest is calculated daily and credited at the end of each month.
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- Current effective annual rate: 8.43% (variable).
- Minimum initial investment: KES 5,000.
- Minimum top-up: KES 1,000.
- Interest calculated daily, credited monthly.
- 2% annual management fee and 15% withholding tax.
- Withdrawals at short notice, with no stated penalty fees.
Best for: savers who want a liquid, professionally managed cash fund and can accept a variable return. Not ideal for: anyone who needs a guaranteed return, long-term growth or instant cash.
What the fund invests in
CIC says the fund holds call and fixed deposits with CBK-regulated institutions, Treasury bills and other government securities, and approved commercial paper. Its July 2026 fact sheet shows how that looked in practice:
| Holding | Share of the fund |
|---|---|
| Treasury securities | 49.96% |
| Demand deposits | 24.95% |
| Fixed deposits | 23.07% |
| Corporate bonds | 1.77% |
| Cash and net settlements | 0.25% |
Source: CIC Money Market Fund fact sheet, July 2026. The fund held about KES 69.7 billion at that date. Weights change monthly.
About half the fund sits in government paper and the rest in bank deposits, so the yield tracks short-term interest rates.
The yield: daily rate versus effective rate
CIC’s website lists a current daily rate of 8.12% and a current effective annual rate of 8.43%. The effective rate is higher because interest credited each month then earns interest itself.
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- Current daily rate: 8.12%, the simple rate applied to your daily ending balance.
- Effective annual rate: 8.43%, the compounded return if interest is left in the account for 12 months.
The 2% rule: do not subtract the 2% annual management fee from these figures. CIC publishes these rates net of management fees but gross of tax.
We checked the maths: compounding 8.12% monthly over a year gives 8.43%, so the two numbers are consistent.
The rate moves
CIC’s page also shows how much the yield has varied: a high of 12.67% and a low of 8.53% over the past year, a 2025 average of 9.84% and a 2026 average to date of 8.50%. The current 8.43% is slightly below that one-year low, so do not plan on the yield rising. CIC’s page states that past performance is not an indicator of future performance.
Fees: what you pay
| Fee | Amount | Notes |
|---|---|---|
| Initial fee | Nil | No entry charge (CIC fact sheet) |
| Annual management fee | 2.00% a year | Charged inside the fund (CIC fact sheet) |
| Withdrawal penalty | None stated | The fact sheet says withdrawals are at short notice with no penalty fees. Your bank or M-Pesa may charge to receive the money |
The 2% is a fee taken from the fund’s return, not a bill you pay separately. Whether it is already out of the 8.43% is the question flagged in the yield section.
Tax: what you keep
Interest from a Kenyan money market fund is generally subject to 15% withholding tax, deducted at source, and for resident individuals it is generally treated as the final tax on that interest. Companies and non-residents can be treated differently, so confirm unusual cases with KRA or an adviser.
A quick estimate is the published rate multiplied by 0.85. For CIC: 8.43% × 0.85 = 7.17%.
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- Input: KES 100,000 investment.
- Plus KES 8,430 gross yield at 8.43%.
- Minus KES 1,264.50, 15% withholding tax.
- Equals KES 7,165.50 net interest.
Quick maths: published rate × 0.85 gives about 7.17%.
The arithmetic on the slide is right. Treat the result as an illustration: it holds the 8.43% rate constant for a year, which rarely happens, and it ignores any bank or M-Pesa charge when you withdraw.
Return calculator
Put in your own amount, the current rate and how long you will hold it. It uses simple interest, so it is a rough estimate.
Gross interest
–Tax withheld
–Interest you keep
–After-tax yield
–Default example: KES 100,000 at 8.43% for 12 months.
Assumes the rate stays constant, no extra deposits or withdrawals, and no withdrawal charges. If the 8.43% is gross of the 2% fee, lower the rate by 2 points to see the effect.
If you open with KES 5,000 and add KES 1,000 every month for 12 months, you will have paid in KES 17,000 before interest and tax.
How to invest
- Check the latest rate and terms. Read CIC’s Money Market Fund page and the current fact sheet. Rates change.
- Get the unit trust application form. Download it from CIC’s website, collect it at a branch, or request it by email from CIC Asset Management.
- Prepare your KYC documents. CIC lists your national ID or passport, a passport photo, your KRA PIN certificate and bank proof such as a cancelled cheque, a recent statement or the front of your ATM card.
- Submit the application by email or at a branch. CIC says it opens accounts within 24 working hours, then sends a welcome letter by email and your member number by SMS.
- Make your first deposit of at least KES 5,000 through the CIC Asset App or M-Pesa.
- Confirm the deposit. You should get an SMS, and your app or statement should show the balance.
Topping up by M-Pesa Paybill 600118
Open M-Pesa, choose Lipa na M-Pesa, then Pay Bill. Enter business number 600118, then your account number, the amount without commas, and your PIN.
The deck’s application steps slide had numbering errors, and its M-Pesa slide a typo, so we have written both as text above instead.
Withdrawals
CIC says you can withdraw at short notice, and its fact sheet says there are no penalty fees. It does not publish a settlement time. One third-party guide says 2 to 4 business days to M-Pesa or a bank, which we could not confirm with CIC, so allow a few days and do not treat the fund as same-day cash. The fact sheet also says the right to redeem units may be suspended in specified circumstances.
Is it safe?
It is a low-risk fund with named oversight, but it is not risk-free. Kenya Commercial Bank is the trustee, Co-operative Bank is the custodian and PwC is the auditor, according to CIC’s fact sheets.
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- Trustee, Kenya Commercial Bank: ensures the manager adheres to the governing trust deed.
- Custodian, Co-operative Bank: holds the underlying cash and regulated securities.
- Auditor, PwC: independent financial verification and oversight.
Separation of duties means CIC manages the investment strategy while independent institutions hold the assets.
The three names are confirmed. The one-line job descriptions are general descriptions of those roles, not text from CIC.
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- Floating rates: the 8.43% yield is not locked.
- Settlement time: withdrawals are at short notice, but not instant same-day ATM cash.
- No deposit insurance: unit trusts do not carry standard bank deposit protection guarantees.
- Purchasing power: if inflation exceeds the roughly 7.17% net yield, the real value of your money falls.
CIC versus a fixed deposit
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- Return: fund variable; fixed deposit locked for the term.
- Access: fund at short notice; fixed deposit locked, early exit usually penalised.
- Minimum: fund KES 5,000; fixed deposit usually higher, set by the bank.
- Interest: fund daily, credited monthly; fixed deposit per bank terms.
Takeaway: the fund optimises for flexibility and continuous top-ups; fixed deposits for rate certainty.
Choose a fixed deposit if certainty matters more than flexibility, and the fund if you want access and the ability to add money over time. Interest on fixed deposits can also attract withholding tax, so compare rates after tax.
Who it suits
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Target profile: an emergency cash buffer; saving for goals less than 12 months away; building savings gradually with KES 1,000+ top-ups; professional management of Treasury bill exposure.
Mismatch profile: needs a strictly guaranteed, unchangeable return; needs instant same-day cash; seeks high-growth long-term equity or retirement returns; is trying to avoid tax on investment income completely.
If you are building an emergency buffer to avoid costly mobile loans, see our guide to the cheapest personal loans in Kenya. For longer savings, compare it with the best SACCOs.
Checklist before you invest
- I have checked today’s daily rate and effective rate on CIC’s page and asked whether the 8.43% is net or gross of the 2% fee.
- I have estimated my return after 15% withholding tax.
- I have my ID, KRA PIN certificate, passport photo and bank proof ready.
- I have confirmed with CIC the exact M-Pesa account number format for Paybill 600118.
- I am using this for capital preservation and short-term liquidity, not high-growth investing.
Frequently asked questions
What is the current CIC Money Market Fund rate?
CIC’s website lists a current daily rate of 8.12% and an effective annual rate of 8.43%. The rate changes, so confirm it with CIC before you invest.
Is the 8.43% rate after tax?
No. It is before 15% withholding tax. After tax, 8.43% is about 7.17%.
Is the 2% management fee already taken out?
CIC’s 2024 and 2025 fact sheets say the effective annual yield is net of fees. Its 2026 fact sheets do not say so clearly, so ask CIC which basis the current rate uses.
What is the minimum investment?
KES 5,000 to start and KES 1,000 for each top-up, according to CIC’s fact sheet.
Does CIC charge an entry fee?
No. The initial fee is nil. The management fee is 2% a year.
How do I top up by M-Pesa?
Use Paybill 600118 with your member number as the account number. CIC’s pages disagree on whether to add the letter M, so confirm the format with CIC first.
How long do withdrawals take?
CIC says short notice and publishes no settlement time. Allow a few days, and note that redemption can be suspended in specified circumstances.
Is the CIC Money Market Fund safe?
It is a low-risk fund with a named trustee, custodian and auditor and is regulated by the CMA. It is not a guaranteed bank deposit, and the yield can fall.
How we researched this guide
We checked the rates, fees and minimums against CIC’s website and its July 2026 fact sheet, and earlier fact sheets for the wording on fees. We recalculated the tax and compounding figures ourselves. We have not opened a CIC account for this review, so nothing here is first-hand testing of the sign-up or withdrawal process. Where CIC’s pages disagree, as on the M-Pesa account format and the fee basis, we say so. Contact the editor to report an error.
Sources
- CIC Insurance Group, Money Market Fund page (8.12% daily, 8.43% effective, one-year range; viewed 23 October 2026)
- CIC Money Market Fund fact sheet, July 2026 (fees, minimums, trustee, custodian, auditor, portfolio)
- CIC Money Market Fund fact sheet, February 2026 (“return is gross of fees charged” footnote)
- CIC Money Market Fund fact sheet, April 2025 (“net of fees and gross of withholding tax”)
- CIC, how to open and top up a unit trust account by Paybill 600118 (2022; account-opening documents and the “M” format)
- Business.co.ke, CIC Money Market Fund guide (14 September 2026; 15% final withholding tax; secondary source)
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