Money market funds (MMFs) are the most popular way for Kenyans to save beyond a bank account. You can start with a few hundred or a thousand shillings, add money by M-Pesa, and usually withdraw within two or three working days.

This guide explains how to compare them. It is general information, not a recommendation of any fund.

What you can expect to earn

Yields move with interest rates. At the end of September 2026 the 27 shilling funds regulated by the Capital Markets Authority averaged about 9.2% a year, with the highest paying roughly two percentage points more. For comparison, the 91-day Treasury bill was paying 8.78%.

Work out what a monthly saving grows to with the savings calculator.

How to compare funds

1. Before or after tax? Interest has 15% withholding tax taken off, and it is final. Funds usually advertise the yield before tax. A fund advertising 10% pays you about 8.5%. When comparing, make sure every fund’s figure is on the same basis.

2. Effective annual yield. Most funds quote an effective annual yield, which assumes interest is compounded. Compare like with like.

3. Fees. The management fee (usually around 1.5% to 2.5% a year) is already taken out of the published yield, but check for any fees on joining or withdrawing.

4. Consistency, not one week’s rate. The top of the table changes often. A fund that has been near the top for a year says more than a spike in one week.

5. Size and manager. Large funds run by established managers are easier to exit quickly when many people withdraw at once.

6. How fast you can withdraw. Most pay out in one to three working days. Check whether withdrawals go to M-Pesa, your bank or both, and whether there are limits.

7. Minimum investment. Many funds accept KES 1,000 or less, and top-ups of KES 100 or so.

Is my money safe?

MMFs invest in low-risk things - Treasury bills, bank deposits and other short-term debt - but they are not guaranteed, and are not covered by deposit insurance.

  • Invest only with funds licensed by the Capital Markets Authority. CMA publishes the list of approved collective investment schemes.
  • Your money is held by a separate custodian, usually a bank, not by the fund manager itself.
  • Be wary of products that sound like an MMF but promise fixed, high returns and are not on the CMA list.

Dollar funds

Some managers offer US dollar money market funds. They pay less than shilling funds but protect savings against a falling shilling, which can suit people who earn or spend in dollars. The same tax rules apply.

How to open one

  1. Choose a fund and download its app or visit its website.
  2. Register with your ID or passport, KRA PIN and bank details.
  3. Deposit by M-Pesa paybill or bank transfer, using your account number as the reference.
  4. Check your statement - you should see daily interest.

MMF or Treasury bill?

  • MMF: small amounts, add any time, withdraw in days.
  • Treasury bill: larger minimum of KES 50,000, money locked until maturity, the rate fixed when you buy. See Buying Treasury bills and bonds.

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