As traditional savings rates struggle to keep up with inflation, more Kenyans are looking for smarter, safer ways to grow their cash without locking it away. Money Market Funds (MMFs) are increasingly emerging as the go-to short-term investment choice — offering liquidity, steady returns, and regulatory oversight in an unpredictable economy.
The rise of money market funds in Kenya
Money Market Funds are collective investment schemes that pool funds from multiple investors and place them in short-term, low-risk instruments such as Treasury Bills, government securities, and fixed deposits. In Kenya, these funds have gained popularity among both individual savers and corporates seeking better returns on idle cash.
According to data from the Capital Markets Authority (CMA), MMFs collectively hold over KSh 300 billion in assets under management, making them the fastest-growing unit trust category in 2025. This growth is driven by ease of entry — many funds allow minimum investments starting at just KSh 1,000 — and attractive annual yields ranging between 12 % and 16 %, depending on the fund.
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Why investors are making the switch
Traditional savings accounts in Kenya often earn interest rates of between 2 % and 4 %, which, after inflation, translate to negative real returns. MMFs, by contrast, offer daily interest accrual and near-instant liquidity. Investors can withdraw their money within a day or two, making them ideal for emergency funds, short-term savings, or business cash-flow management.
Additionally, MMFs are licensed and regulated by the CMA, giving investors a level of safety and transparency. Fund managers are required to publish daily yield updates and periodic reports, ensuring accountability and investor protection.
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How to get started
Opening an MMF account is simple. Most fund managers in Kenya — including those offering mobile-enabled options — allow online registration and deposits via M-Pesa. Investors receive daily statements and can monitor returns in real time.
When choosing a fund, it’s advisable to compare management fees, historical performance, liquidity terms, and the fund’s investment policy. Even small differences in fees or daily rates can significantly impact annual returns.
As Kenya’s financial landscape continues to evolve, MMFs have positioned themselves as a stable bridge between saving and investing — offering higher yields without taking excessive risk.
Whether you’re an individual saver or a small business owner, exploring a regulated Money Market Fund could be your first step toward smarter financial growth.
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