Money market funds in Kenya: how they work
Updated 1 October 2026 · 6 min read
A money market fund (MMF) pools money from many savers and lends it out safely and short term: T-bills, government bonds close to maturity, and bank deposits. It is the most popular way for Kenyans to earn more than a savings account while keeping quick access to their money.
The key facts
| Top yields (end of Sep 2026) | 10.3–11.0% a year |
| Withholding tax on interest | 15% |
| Typical minimum to start | KSh 1,000–5,000 |
| Time to withdraw | 1–3 working days |
| Regulator | Capital Markets Authority (CMA) |
Kenyans hold about KSh 460 billion in money market funds, across more than 4 million investors.
How the yield is quoted
The yield you see advertised is a yearly rate after the fund's management fee but before the 15% withholding tax. Interest is worked out daily, so your balance grows every day.
Example: KSh 100,000 in a fund yielding 10.5%. After 15% tax you earn about 8.9%, so roughly KSh 108,900 after a year, if the rate stays the same.
How to choose a fund
- Net yield: compare funds on the same basis, after fees. Our comparison table does this for you.
- Size and track record: a large fund with years of steady returns is usually safer than a small new one chasing the top spot.
- Access: how fast withdrawals reach your M-Pesa or bank, and whether there are withdrawal charges.
- Minimums and top-ups: check you can add small amounts easily, for example by M-Pesa paybill.
The risks
- An MMF is not a bank deposit, so it isn't covered by deposit insurance.
- Yields change daily and can fall, especially when Central Bank rates drop.
- The fund could lose money if a borrower it lent to fails. That's why size and spreading of investments matter.
Dollar money market funds
Some fund managers also run US dollar funds, a useful option for diaspora savers or anyone saving for costs in dollars. They yield less (the top ones paid around 5–6.5% in September 2026) but protect you from the shilling weakening.
Frequently asked questions
MMF or T-bill? An MMF lets you withdraw any time and start small. A T-bill locks in a rate but needs KSh 50,000 and ties up your money. Many people use both: see how to buy T-bills.
How much will my savings grow? KSh 5,000 a month at 8.5% after tax grows to about KSh 372,000 in 5 years.
For education only, not financial advice. Past yields don't guarantee future returns. Read each fund's documents before you invest.