What is a money market fund?
A money market fund pools investor cash and invests it in short-term, lower-risk instruments such as Treasury bills, fixed deposits and near-cash securities. The fund publishes an annualized yield, while your balance usually earns interest daily and credits income periodically depending on the fund manager.
Why invest in an MMF?
- Liquidity is usually better than a fixed deposit because withdrawals are commonly processed within a few business days.
- Minimum balances are often accessible for retail investors.
- Returns usually track short-term interest rates more closely than ordinary savings accounts.
- Fund assets are held separately from the fund manager through a custodian structure.
How to compare top funds
Start with the net yield because that is closer to what you keep after withholding tax. Then compare the manager, withdrawal process, minimum balance, fees, customer support and how consistently the fund publishes rates. For a current sorted view, use the MMF rankings page and the performance overview.
Tax on MMF returns in Kenya
MMF interest is generally quoted gross before tax and net after Kenya's 15% withholding tax on interest. Real Time Rates shows both values where available, but investment decisions should compare the net annual yield.