Treasury Bonds vs Money Market Funds in Kenya: Which Is Right for You?

Treasury Bonds and Money Market Funds are both low-risk investments in Kenya, but they serve very different financial goals. Treasury Bonds lock in a fixed government-backed coupon for 2 to 30 years — ideal for long-term income and wealth building. Money Market Funds offer flexible, accessible daily returns with no lock-in period — better for short-term savings and emergency reserves. The right choice depends entirely on your timeline, amount, and liquidity needs.

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Key Takeaways

• Treasury Bonds pay a fixed coupon every six months for the full life of the bond (2–30 years); MMFs pay variable returns that accrue daily and are credited monthly.
• Minimum for Treasury Bonds is Ksh 50,000; most MMFs start from Ksh 100.
• MMFs allow withdrawal within 1–3 business days; Treasury Bonds are illiquid unless sold on the NSE secondary market, where prices can move against you.
• Infrastructure Bonds offer a tax-free coupon — the most tax-efficient investment in Kenya’s fixed-income market.
• Both are subject to 15% Withholding Tax on standard interest income.
• Treasury Bonds are direct government obligations; MMFs are CMA-regulated pooled funds.
• The two instruments complement each other well — most serious investors should consider holding both.

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Introduction

At first glance, Treasury Bonds and Money Market Funds appear to occupy the same corner of the investment universe — low risk, accessible to ordinary Kenyans, and offering returns that comfortably beat a standard savings account. But beneath that surface similarity, they are fundamentally different products designed for different purposes.

A Money Market Fund is built for flexibility. It is the instrument you reach for when you want your money to earn a competitive return while staying accessible at short notice. It suits the investor who is building an emergency fund, saving toward a goal that is less than a year away, or simply wants a better home for idle cash than a current account.

A Treasury Bond is built for commitment. It is the instrument you reach for when you want to lock in a known rate of return over a multi-year period, generate a predictable semi-annual income stream, and build long-term wealth without paying management fees to anyone. It rewards patience and punishes investors who need liquidity before maturity.

Understanding this core distinction — flexibility versus commitment — is the key to deciding which instrument belongs in your portfolio, and in what proportion. This guide gives you a complete, honest, side-by-side comparison so you can make that decision with confidence.

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What Are Treasury Bonds in Kenya?

Treasury Bonds are long-term debt securities issued by the Government of Kenya through the Central Bank of Kenya (CBK). When you buy a Treasury Bond, you are lending money to the government in exchange for:

• A fixed coupon payment every six months, calculated as a percentage of the face value.
• The return of your full principal at maturity.

Bonds are issued in tenors ranging from 2 to 30 years and are auctioned by CBK approximately every two weeks. The minimum investment is Ksh 50,000.

Kenya issues four main types of Treasury Bonds:

Bond Type	Key Feature
Fixed Coupon Bond	Fixed rate for life of bond; 15% WHT on coupons
Infrastructure Bond (IFB)	Fixed rate; coupons are completely tax-free
Floating Rate Bond	Rate adjusts periodically with benchmark
Reopened Bond	Additional issuance of existing series

The star of the lineup is the Infrastructure Bond — when issued, it offers the only tax-free fixed-income return available to retail investors in Kenya, making it exceptionally attractive.

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What Are Money Market Funds in Kenya?

A Money Market Fund (MMF) is a CMA-regulated pooled investment fund that collects money from many investors and places it in a diversified portfolio of short-term, low-risk instruments — primarily Treasury Bills, bank fixed deposits, call deposits, and commercial paper.

MMFs are offered by licensed fund managers including CIC Asset Management, Sanlam Investments, Britam Asset Managers, Nabo Capital, Old Mutual Investment Group, NCBA Investment Bank, and others.

Key characteristics:

• Returns accrue daily and are typically credited monthly or reinvested automatically.
• No fixed maturity — you invest and withdraw on any working day.
• Minimum investment from Ksh 100 to Ksh 1,000 depending on the fund manager.
• Accessible via mobile apps, USSD codes, and M-Pesa integrations.
• Annual management fees of approximately 1%–2% are deducted from the fund before yields are declared.

Read also: How to Invest in Treasury Bonds in Kenya

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Head-to-Head Comparison

Feature	Treasury Bonds	Money Market Funds
Issuer / Manager	Government of Kenya (via CBK)	CMA-licensed fund managers
Minimum Investment	Ksh 50,000	Ksh 100 – Ksh 1,000
Tenor / Commitment	2 to 30 years	No lock-in; open-ended
Return Type	Fixed coupon, paid semi-annually	Variable daily accrual, credited monthly
Typical Returns	Varies — check CBK auction results	Approximately 10%–14% p.a. (varies)
Liquidity	Low–Medium (NSE secondary market)	Very High (T+1 to T+3 withdrawal)
Tax on Returns	15% WHT (0% for Infrastructure Bonds)	15% WHT on interest/dividends
Management Fees	None (direct DhowCSD)	1%–2% per annum
Risk Level	Very Low (direct government obligation)	Low (diversified, CMA-regulated)
Return Certainty	High (fixed rate locked at allotment)	Medium (fluctuates with market rates)
Accessibility	DhowCSD account + Ksh 50,000 minimum	App, USSD, M-Pesa
Reinvestment	Manual (every coupon payment)	Automatic
Best For	Long-term goals, passive income	Short-term savings, emergency funds

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Returns: Which Pays More?

This is the question every Kenyan investor asks first — and the answer is more nuanced than a simple number comparison.

How Treasury Bond Returns Work

When your bond bid is accepted at auction, the coupon rate is fixed for the entire life of the bond. If you invest in a 10-year bond at 14% coupon, you receive 14% per annum on your face value for 10 years, regardless of what happens to interest rates in Kenya during that period.

This is both the great strength and the great constraint of bonds. In a falling rate environment, being locked into 14% when the market has moved to 10% is a significant advantage. In a rising rate environment, being locked into 14% when the market offers 17% feels like a missed opportunity — though you still receive your contracted return in full.

Example on Ksh 1,000,000 in a 10-year bond at 14% coupon:

• Gross semi-annual coupon: Ksh 70,000
• After 15% WHT: Ksh 59,500 net per coupon
• Total net coupon income over 10 years: Ksh 1,190,000
• Plus principal returned: Ksh 1,000,000
• Total received: Ksh 2,190,000 over 10 years

For an Infrastructure Bond at the same rate, coupons are tax-free:

• Semi-annual coupon: Ksh 70,000 (no WHT deduction)
• Total coupon income over 10 years: Ksh 1,400,000
• Plus principal: Ksh 1,000,000
• Total received: Ksh 2,400,000 over 10 years — Ksh 210,000 more than the standard bond

How MMF Returns Work

MMF returns are expressed as an annualised effective yield that changes regularly based on prevailing interest rates and the fund’s portfolio composition. When the CBK raises rates, MMF yields tend to rise. When rates fall, MMF yields follow.

Returns accrue daily and are either credited to your account monthly or automatically reinvested as additional units. The yield you see quoted by a fund manager is typically net of management fees but before WHT.

Example on Ksh 1,000,000 in an MMF at 12% effective annual yield:

• Annual gross return: Ksh 120,000
• After 15% WHT: approximately Ksh 102,000 net
• Over 10 years with reinvestment at same rate: approximately Ksh 2,707,000 total value (due to compounding)

Note that the MMF example assumes returns are consistently reinvested and the yield remains stable — both of which involve uncertainty. The bond example is contractually fixed.

Which Pays More in Practice?

Over a 10-year horizon, the outcome depends heavily on three variables:

• The bond coupon rate at the time of investment
• The average MMF yield over the same 10 years
• Whether you actively reinvest MMF returns to benefit from compounding

In periods when bond coupon rates are significantly above average MMF yields, bonds tend to produce higher total returns over the full tenor — especially Infrastructure Bonds with their tax-free advantage. In periods when MMF yields are high and bond rates are low, MMFs can outperform bonds net of fees for shorter holding periods.

For most investors, the comparison is not purely about which number is higher today — it is about which instrument delivers the certainty and income pattern that matches your goal.

Always compare current Treasury Bond coupon rates at www.centralbank.go.ke against live MMF yields published by CMA-licensed fund managers before making a decision.

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Liquidity: The Biggest Practical Difference

If returns are the most discussed difference between bonds and MMFs, liquidity is the most practically important one for most Kenyan investors.

Treasury Bond Liquidity

Treasury Bonds are not designed to be liquid in the short term. Once your bid is accepted and settlement occurs, your capital is committed to the bond’s tenor — which could be 2, 5, 10, or 25 years.

You can sell your bond before maturity on the NSE secondary market through a licensed stockbroker or via DhowCSD, but there are significant caveats:

• Price risk: If market interest rates have risen since you bought the bond, the secondary market price will be below face value. You will receive less than you invested.
• Thin retail liquidity: For smaller amounts (below Ksh 1 million), finding a buyer at a fair price can take time and may require a price concession.
• Transaction costs: Selling on the secondary market involves brokerage fees that reduce your net proceeds.

The practical implication: treat Treasury Bond investments as money you will not need until maturity. Investing short-term money in long-term bonds is one of the most common and costly mistakes Kenyan investors make.

Money Market Fund Liquidity

MMFs are purpose-built for accessibility. Most Kenyan fund managers process withdrawal requests within one to three business days. Several MMFs with M-Pesa integration offer near-instant withdrawals for amounts below certain thresholds — often the same day you request.

There are no secondary market mechanics, no price risk on withdrawal, and no brokerage fees. You withdraw the current value of your units at the prevailing NAV, which in an MMF is designed to be stable.

Verdict on Liquidity

Money Market Funds are decisively more liquid. For any money you might need within the bond’s tenor, an MMF is the only sensible choice. Treasury Bonds are for money you have consciously set aside for a specific long-term goal.

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Risk: Comparing Two Low-Risk Options

Both instruments sit firmly at the lower end of Kenya’s investment risk spectrum, but they are not identical.

Treasury Bond Risk Profile

Treasury Bonds are direct obligations of the Government of Kenya. The government is contractually required to pay your coupon every six months and return your principal at maturity. The risk of default on a domestic Kenyan Shilling bond is considered extremely low by market participants and rating agencies.

The primary risks in Treasury Bonds are not default risks but structural ones:

• Interest rate risk: Rising rates after you buy reduce the market value of your bond (relevant if you sell early).
• Inflation risk: Over 10–20 year tenors, Kenya’s inflation could erode the real purchasing power of fixed coupon payments.
• Liquidity risk: You may not be able to exit at full value before maturity.

MMF Risk Profile

MMFs are not government-backed but they are CMA-regulated, diversified, and audited. The risks include:

• Fund manager risk: Mismanagement, fraud, or operational failure at the fund manager level — mitigated significantly by CMA oversight.
• Credit risk: MMFs hold bank deposits and occasionally commercial paper, which carry slightly higher credit risk than pure government securities.
• Yield variability: Unlike bond coupons, MMF returns can fall significantly if interest rates drop. An investor relying on a consistent 13% MMF yield may find it drops to 9% in a low-rate environment.
• NAV stability: Designed to be stable but not guaranteed in all market conditions.

Verdict on Risk

Treasury Bonds carry marginally lower credit risk because they are direct government obligations. However, bonds introduce significantly more interest rate risk over long tenors. MMFs carry slightly higher credit risk but virtually no interest rate risk due to their short-duration portfolios. For most practical purposes, both are safe. Choose based on your goals, not primarily on this risk distinction.

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Tax: Where Infrastructure Bonds Change Everything

Both standard Treasury Bonds and MMFs are subject to 15% Withholding Tax on income. In isolation, neither has a tax advantage over the other. However, Kenya’s Infrastructure Bonds completely rewrite the tax comparison.

Standard Bond vs MMF Tax (15% WHT Both)

On an identical 13% gross return, both a standard bond and an MMF net you approximately 11.05% after 15% WHT. No meaningful difference.

Infrastructure Bond Tax Advantage

When CBK issues an Infrastructure Bond — which carries a 0% WHT exemption on coupon income — the calculation shifts dramatically.

Scenario	Gross Return	WHT	Net Return
MMF at 13%	13%	15%	~11.05%
Standard Bond at 13%	13%	15%	~11.05%
Infrastructure Bond at 13%	13%	0%	13.00%

An Infrastructure Bond at 13% effectively returns almost 2 percentage points more per year than both an MMF and a standard bond at the same gross rate. Over a 10-year IFB on Ksh 1,000,000, that difference exceeds Ksh 200,000 in additional net income.

IFBs are not always available — they are announced periodically and tend to be heavily oversubscribed. But when they are offered, they represent the single most tax-efficient fixed-income opportunity in the Kenyan retail investment market. Investors who monitor CBK auction notices and act quickly on IFBs consistently outperform those who do not.

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Fees: A Growing Advantage for Bonds Over Time

Treasury Bonds (Direct via DhowCSD)

Zero management fees. The only cost is the 15% WHT (or zero for IFBs). On Ksh 1,000,000 invested directly through DhowCSD, your coupon income is entirely yours minus only the statutory tax.

Money Market Funds

Fund managers typically charge an annual management fee of 1%–2% of assets. This fee is deducted from the fund before yields are declared, so the quoted yield is net of fees. However, the compounding impact of a 1.5% annual drag on large sums is significant.

Fee impact on Ksh 1,000,000 over 5 years at 1.5% annual management fee:

The cumulative management fees deducted from a Ksh 1,000,000 MMF investment over 5 years amount to approximately Ksh 75,000–80,000 that never appears as a deduction on your statement but is absent from your returns. This is the invisible cost of convenience.

Verdict on Fees

Treasury Bonds win clearly on fees for investors who invest directly via DhowCSD. The zero-fee structure becomes increasingly valuable on larger amounts and longer time horizons.

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Accessibility: Where MMFs Have a Clear Advantage

Treasury Bonds

• Require a verified DhowCSD account (1–3 business days to activate).
• Minimum Ksh 50,000 per investment.
• Auctions occur approximately every two weeks — you must time your investment.
• Not available via USSD or M-Pesa.
• Require basic understanding of bond pricing, coupon mechanics, and auction procedures.
• Selling before maturity requires a licensed stockbroker.

Money Market Funds

• Start from Ksh 100 — accessible to almost every Kenyan with a mobile phone.
• Invest on any working day with no auction schedule.
• Available via M-Pesa, USSD codes, smartphone apps.
• No financial knowledge required to get started.
• Automatic reinvestment removes the need for active management.

Verdict on Accessibility

Money Market Funds are far more accessible. For first-time investors, lower-income savers, or anyone who needs simplicity and immediacy, MMFs are the natural starting point.

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Who Should Choose Treasury Bonds?

Treasury Bonds are the better choice when:

• You have a long-term financial goal — retirement, a child’s university fund, building generational wealth.
• You can commit at least Ksh 50,000 for 2 years or longer without needing access to the money.
• You want a fixed, predictable income stream every six months — for school fees, annual insurance, or retirement income.
• You want to maximise yield without paying annual management fees.
• You are investing a lump sum (bonus, property proceeds, matured policy) and want to lock in a strong rate.
• An Infrastructure Bond auction is announced and you want to capture the tax-free advantage.
• You want the discipline of a fixed maturity that prevents premature spending.

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Who Should Choose a Money Market Fund?

A Money Market Fund is the better choice when:

• You are investing less than Ksh 50,000 or building up savings gradually.
• Your financial goal is less than two years away.
• You need your money accessible at short notice — emergency fund, business working capital, or school fees due within months.
• You prefer a fully automated, hands-off investment that requires no timing or monitoring.
• You are a first-time investor and want a simple, low-risk introduction to investing in Kenya.
• You want a high-yield alternative to a savings account where you can add and withdraw freely.

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The Smart Combination: Using Both Together

For investors with enough capital to do both, combining Treasury Bonds and a Money Market Fund is the most effective strategy — not choosing one over the other.

A practical two-tier approach for a Kenyan investor:

Tier 1 — Liquid Reserve (Money Market Fund) Keep 3–6 months of living expenses in an MMF. This money earns a competitive daily return and is accessible within 1–3 days for genuine emergencies. You never need to sell a bond at a loss to cover an unexpected expense.

Tier 2 — Long-Term Growth (Treasury Bonds) Invest any money beyond your liquid reserve into Treasury Bonds. Prioritise Infrastructure Bonds when they are issued. Build a ladder across 2-year, 5-year, and 10-year bonds so that bonds mature regularly, giving you reinvestment opportunities and reducing interest rate concentration risk.

The reinvestment loop: When coupon payments arrive every six months, deposit them into your MMF temporarily while you wait for the next suitable bond auction. When a good auction appears, sweep the accumulated coupons into a new bond. This keeps every shilling earning returns at all times.

This structure gives you liquidity where you need it, maximum yields where you can afford patience, and the tax advantage of IFBs when they appear — without ever being caught with long-term money in a short-term instrument or vice versa.

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Pros and Cons Summary

Treasury Bonds

Pros

• Direct government obligation — among the lowest credit risk in Kenya.
• Fixed coupon rate locked in for the entire life of the bond.
• Predictable semi-annual income for precise financial planning.
• Infrastructure Bonds offer Kenya’s only retail tax-free fixed-income return.
• No management fees on direct DhowCSD investment.
• Long tenors allow real wealth accumulation over time.

Cons

• Capital is illiquid for the full tenor under normal conditions.
• Interest rate risk if you need to sell early in a rising rate environment.
• Inflation over very long tenors can erode the real value of fixed coupons.
• Auctions are infrequent — requires planning and timing.
• Minimum Ksh 50,000 excludes investors with smaller savings.
• Coupon reinvestment requires active management every six months.

Money Market Funds

Pros

• Start from Ksh 100 — accessible to any Kenyan with a phone.
• Near-instant or next-day withdrawals — maximum liquidity.
• Returns are automatically reinvested with no manual action required.
• No auction schedule — invest or withdraw any working day.
• Diversified portfolio across multiple issuers reduces concentration risk.

Cons

• Annual management fees of 1%–2% reduce effective returns.
• Yields are variable and can fall significantly in a low-rate environment.
• Not government-backed directly — carries fund manager and credit risk.
• No ability to lock in today’s rate for future periods.
• Returns are not contractually fixed — can decrease after you invest.

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Common Mistakes When Comparing Bonds and MMFs

Comparing Gross Yields Without Accounting for Fees and Tax

A Treasury Bond quoted at 14% and an MMF quoted at 13% are not straightforwardly comparable. After 15% WHT, the bond nets approximately 11.9%. After 15% WHT, the MMF nets approximately 11.05% — but the MMF yield is already quoted net of a 1.5% management fee that was deducted before the yield was declared. Accounting for all costs and taxes puts them much closer together than the headline numbers suggest. For Infrastructure Bonds, the comparison shifts decisively in favour of bonds.

Investing Emergency Money in Long-Term Bonds

This is the most damaging mistake in practice. An investor puts their entire savings — including their emergency reserve — into a 10-year Treasury Bond to capture the attractive coupon. When an unexpected medical bill or job loss occurs, they are forced to sell on the secondary market at a loss because interest rates have risen. Always maintain a liquid MMF reserve before committing to long-term bonds.

Assuming MMF Returns Will Stay Consistent

Some investors build long-term financial plans assuming their MMF will consistently yield 13% or 14%. MMF yields track short-term interest rates. If CBK cuts the benchmark rate significantly — as can happen during economic slowdowns — MMF yields can fall to 8% or 9%. Treasury Bond coupons are immune to this once locked in.

Overlooking Infrastructure Bonds When They Are Issued

Many retail investors do not actively monitor CBK auction notices and therefore miss IFB issuances entirely. Given the dramatic tax advantage of IFBs over both standard bonds and MMFs, missing them repeatedly represents a significant long-term cost. Set up alerts for CBK auction announcements and treat IFBs as a priority when they appear.

Treating All MMFs as Identical

Not all Kenyan MMFs are equal. Fund managers differ in their portfolio composition, fee structures, liquidity terms, and management quality. Some hold more bank deposits (higher credit risk, potentially higher yield); others hold predominantly government securities (lower risk, slightly lower yield). Always review the fund’s fact sheet and check that it is licensed by the CMA before investing.

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Frequently Asked Questions

1. Which gives better long-term returns — Treasury Bonds or Money Market Funds in Kenya?

Over a 10-year horizon, a Treasury Bond locked in at a high coupon rate — particularly an Infrastructure Bond — typically delivers higher total returns than an MMF after accounting for the MMF’s annual management fees. However, this depends on the rates available at the time of investment. MMFs benefit from automatic compounding, which partially offsets the fee drag. For the longest time horizons, bonds generally win; for periods under two years, MMFs are more practical.

2. Can I lose money in a Treasury Bond or MMF in Kenya?

In a Treasury Bond, you cannot lose money if you hold to maturity — your principal is guaranteed by the government. However, if you sell before maturity in a rising interest rate environment, you may receive less than you invested on the secondary market. In an MMF, your capital is not guaranteed but the risk of loss is very low given the short-duration, diversified nature of the portfolio. No major Kenyan retail MMF has imposed capital losses on investors, but this is not a legal guarantee.

3. What is the minimum investment for each?

Treasury Bonds require a minimum of Ksh 50,000. Most Kenyan MMFs start from Ksh 100 to Ksh 1,000 depending on the fund manager. This makes MMFs accessible to virtually any investor, while bonds suit those with a meaningful lump sum to commit.

4. Are Infrastructure Bonds better than MMFs?

For investors who can commit funds for the full IFB tenor (typically 5–15 years), Infrastructure Bonds are almost always superior to MMFs on an after-tax, after-fee basis. The 0% WHT on coupon income, combined with zero management fees, gives IFBs a substantial advantage over any MMF at comparable gross yields. The trade-off is liquidity — IFBs are not immediately accessible before maturity.

5. How liquid are Treasury Bonds compared to MMFs?

MMFs are far more liquid. Most MMFs allow withdrawals within 1–3 business days with no price risk. Treasury Bonds require either holding to maturity (2–30 years) or selling on the NSE secondary market, where the price depends on prevailing rates and you may receive less than you invested. For practical purposes, treat bonds as illiquid until maturity.

6. Do Treasury Bonds and MMFs have the same tax treatment in Kenya?

Standard Treasury Bonds and MMFs are both subject to 15% WHT on income — so tax treatment is equivalent. Infrastructure Bonds are the exception: their coupon income is entirely tax-free, giving them a significant net return advantage over MMFs at the same gross yield.

7. Should I invest in Treasury Bonds if I already have an MMF?

Yes, for most investors who have accumulated at least Ksh 50,000 beyond their emergency reserve. An MMF is an excellent starting point and an essential liquidity buffer, but it does not replace the higher certainty, fee-free returns, and tax advantages available through direct bond investment. The two instruments are complementary, not competing.

8. How do I start investing in Treasury Bonds in Kenya?

Register on the CBK’s DhowCSD portal at www.dhowcsd.go.ke with your National ID, KRA PIN, and bank account details. Account activation takes 1–3 business days. Monitor CBK auction notices for upcoming bond auctions, submit a non-competitive bid on auction day, and await your allotment confirmation. Coupons are then automatically paid to your linked bank account every six months.

9. Can I invest in both at the same time?

Yes — and doing so is the recommended approach for most serious investors. Keep your emergency fund and short-term savings in an MMF for accessibility, and invest your longer-term committed capital in Treasury Bonds for fixed returns and zero management fees. This structure optimises both liquidity and yield across your portfolio.

10. Which is better for retirement savings in Kenya — bonds or MMFs?

For retirement savings with a horizon of 10 years or more, Treasury Bonds — particularly Infrastructure Bonds — are generally superior because they lock in returns, require no management fees, and provide the predictable semi-annual income stream that many retirees need. MMFs are more appropriate for retirees who need flexible access to funds for day-to-day expenses. A retirement portfolio ideally holds a ladder of long-term bonds for income alongside an MMF for liquidity and short-term needs.

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Final Verdict

Treasury Bonds and Money Market Funds are not rivals — they are partners in a well-structured Kenyan investment portfolio. The question is not which one wins, but which one you need more of right now, given your goals, your timeline, and your liquidity requirements.

If you are starting out, investing small amounts, or need flexibility, a Money Market Fund is the right first step. It is accessible, simple, automatic, and offers competitive returns with no lock-in. Start there, build your savings, and treat it as your financial foundation.

If you have accumulated a meaningful lump sum, have a clear long-term goal, and can commit funds for two or more years, Treasury Bonds — especially Infrastructure Bonds when they are available — offer superior after-tax, after-fee returns with the certainty of a fixed government-backed coupon. Add bonds to your portfolio as your savings grow and your investment horizon lengthens.

If you have both short-term reserves and long-term savings, use both instruments simultaneously. Keep your liquid emergency fund in an MMF. Invest your committed capital in a laddered bond portfolio. Sweep coupon payments into your MMF until the next suitable auction. Let each instrument do what it was built to do.

The most expensive financial decision in Kenya is not choosing the wrong instrument between these two — it is choosing neither and leaving your money in a low-interest savings account while both options sit unused.

Disclaimer: Returns and yields referenced in this article are illustrative and based on general market conditions. Actual T-Bond coupon rates change with each auction and MMF yields change regularly. Always verify current rates at www.centralbank.go.ke and review CMA-licensed fund manager fact sheets before investing. This article is for educational purposes only and does not constitute financial advice. Consult a licensed financial advisor for personalised investment guidance.

Read also:

• How to Invest in Treasury Bonds in Kenya
• Treasury Bills vs Money Market Funds in Kenya: Which Is the Better Investment?
• Money Market Funds in Kenya
• How to Invest in Treasury Bills in Kenya