The biggest number on an MMF advert is usually the yield. But two funds with similar headline returns can still leave you with different outcomes because fees, withdrawal charges and the way the yield is presented can differ.
What fees can appear in a Kenyan MMF?
| Cost to check | Why it matters |
|---|---|
| Fund-management fee | Charged for managing the portfolio. The disclosure may state an annual percentage or maximum. |
| Trustee/custodian costs | Collective-investment schemes use independent oversight and custody structures; relevant scheme fees should be disclosed in the fund's documents/reports. |
| Withdrawal/transaction charges | Some providers give free withdrawals up to a limit and charge thereafter, or pass through payment-channel charges. |
| Tax treatment | A quoted effective annual yield may be gross of withholding tax even when it is net of management fees. |
Why “net of fees” matters
Britam's MMF disclosure, for example, says its effective annual yield is net of fees but gross of withholding tax. That means you should not simply compare that percentage with another provider's number until you understand how the other provider defines its yield.
Kuza's published MMF factsheet lists a 2.00% annual management fee. Its FAQ also says bank withdrawals beyond the first two in a month can attract a transaction fee, while M-PESA transactions can attract applicable M-PESA charges.
These are provider examples, not a market-wide rule. Fee schedules and product terms can change.
What does CMA expect funds to disclose?
Kenya's collective-investment-scheme framework requires scheme documents and financial reporting to disclose relevant fund-manager, trustee and custodian fees. That is why the information memorandum, factsheet and financial statements matter when a marketing page looks too simple.
How should you compare two MMFs?
- Check the latest published yield and its date.
- Check whether the yield is gross or net of management fees.
- Check whether withholding tax is already reflected.
- Check withdrawal fees and payout-channel charges.
- Check the minimum investment and withdrawal time.
- Verify the scheme/provider in the relevant CMA records.
Frequently asked questions
Do all MMFs charge the same management fee?
No. Fees vary by provider and product. Use the current provider disclosure rather than assuming one standard percentage.
Are withdrawal fees common?
They vary. Some providers offer a number of free withdrawals and then charge; some digital channels may be free at fund level but still have payment-channel rules.
Should I choose the cheapest MMF?
Not automatically. Cost is one factor alongside yield basis, liquidity, minimums, service, source freshness and regulatory status.
Primary sources checked
- Capital Markets Authority — CIS regulatory framework ↗
- CMA — Collective Investment Schemes disclosure checklist ↗
- Kuza Asset Management — MMF factsheet information ↗
- Kuza Asset Management — fees and withdrawal FAQs ↗
- Britam Kenya — MMF yield-basis disclosure ↗