KSh 100,000 in a money market fund at 10.50% grows to KSh 109,341 in 12 months after tax.
How Money Market Funds work
A money market fund pools investor money into low-risk instruments like Treasury bills, fixed deposits and commercial paper, paying out daily interest that compounds. Kenya has roughly 30 licensed funds, regulated by the Capital Markets Authority, with gross yields typically ranging from about 5% to 13% depending on the manager's investment strategy and market conditions.
Interest is subject to a 15% withholding tax for individual investors, deducted before it's credited to your account, so the rate a fund advertises is always higher than what you actually receive. This calculator lets you plug in your specific fund's current rate to see the real, after-tax picture.
Why doesn't this calculator list specific MMF rates like CIC or Sanlam?
Kenya has around 30 licensed money market funds, and their advertised yields change weekly, currently ranging from roughly 5% to over 13% gross depending on the provider and the week. Hardcoding a specific fund's rate here would go stale within days, so this calculator asks for your own fund's current advertised rate instead, which you can find on the fund manager's website or app.
Is MMF interest taxed in Kenya?
Yes, interest earned on money market funds is subject to a 15% withholding tax for individual investors, deducted before the return is credited to your account.
Are MMF returns guaranteed?
No. Advertised yields are variable and can go up or down with market conditions and the fund manager's underlying portfolio. Past performance does not guarantee future returns.