Imagine you are a 35-year-old running a side hustle. Your contracted driver deposits Sh2,000 daily into your mobile money account. For months, your money remains there; safe, yes, but not growing. Or consider a 28-year-old professional who recently landed a good job.
Instead of letting his salary pile up in a bank account earning almost nothing, he could put it somewhere it starts working for him immediately, while still being available when he needs it.
These everyday scenarios share a common theme: money can sit idle or can work for you safely. This is exactly what money market funds (MMF) do, and more Kenyans are discovering them.
In fact, over 2.5 million Kenyans now have money in these funds, more than double from last year. Together, we’ve put Sh370 billion into money market funds signaling a massive jump.
But here’s the problem: many of us don’t really understand how these funds work or when to use them.
At Orient Asset Managers, we talk to investors every day in our Kasha Money Market Fund. We see the same patterns repeating. People treat MMF like parking spaces—somewhere to keep cash for a few weeks, then move it again. When they hear that another fund is offering a slightly higher rate on WhatsApp groups or TikTok, they quickly withdraw and switch.
What do money market funds actually offer? In 2025, most of them earned between nine percent and 12 percent for investors. Compare that to a regular bank savings account, which pays around four percent.
If you had Sh1 million, that’s a difference of about Sh58,000 extra in your pocket each year, just from choosing where to keep your money. Currently, inflation in Kenya is around 4.5 percent. That means if your money is sitting in an account earning four percent, you are losing 0.5 percent.
So why aren’t more Kenyans using MMF’s? Data shows that we have about Sh5 trillion sitting in regular bank accounts across Kenya. Only about Sh370 billion of that is in money market funds—just seven percent. The opportunity is huge, but so is the knowledge gap.
Here’s what’s happening in 2026 that makes this important. The Central Bank of Kenya has been lowering its benchmark interest rate from 13 percent earlier in the year to nine percent in December 2025 and 8.75 percent on Tuesday.
Treasury bills, which is one of the asset class money market funds invest in, are also paying less now at around 7.6 percent for a 91 day. Due to the current low-interest rate environment money market funds will likely register returns lower than 12 percent in 2026. When that happens, will you panic and pull out your money? Or will you understand that 9-10 percent is still much better than the four percent you would get in a bank?
We know that, for generations, land has been the trusted choice. Land feels safe because you can see it and touch it. But when you need money urgently, how quickly can you sell it? Land is stuck until you find a buyer, which can take months or years.
Money market funds are the opposite. You can’t touch them or see them, but you can access your money within two days. That’s the trade-off: land might grow in value over many years, but money market funds give you safety, returns above inflation, and the ability to get your cash when life demands it.
Interestingly, the two-day waiting period also works as a helpful barrier as it prevents impulse decisions and protects you from pressure to give money away too quickly.
Before putting your money anywhere, ask yourself five things: When will I need this money? How quickly must I get it out? Can I keep adding to it regularly? What fees will I pay? And most importantly, who is managing it, and can I trust them?
Money Market Funds are also perfect for certain life moments. Say you’ve just received a retrenchment package of Sh2million, or a bonus of Sh500,000. Family and friends immediately have “investment opportunities” for you. Someone wants you to partner in a business you know nothing about.
Another has a “sure deal” that needs cash immediately. In the past, many Kenyans rushed into such decisions and lost everything—to failed businesses, pyramid schemes, or scams. A Money Market Fund gives you breathing room.
Put that money there while it earns 9-10 percent, and take your time, to really think through what you want to do. Research that business idea properly. Consult people who’ve done it before.
Check if that “investment opportunity” is registered and legitimate. Your money is safe, it’s growing, and the two-day withdrawal process means you won’t hand it over in a moment of pressure or excitement. You’re protected from both scammers and your own rushed decisions.
The World Bank expects Kenya’s economy to grow by nearly 5 percent in 2026, with prices staying fairly stable. This is actually a good time to be smart about where you keep your money. But “smart” doesn’t mean chasing the highest return you see on WhatsApp or TikTok. It means understanding what you’re getting into.
The writer is Investment Manager at Orient Asset Managers.