Money market fund, SACCO, T-bills or bank? Where to save in Kenya in 2026

Side by side

Option	Typical 2026 return	Tax	Access	Protection
Money market fund	~9–11% a year (top funds)	15% withholding	2–3 working days	Regulated by CMA; assets held by custodian
Treasury bills	8.8–9.0% (Sept 2026 auction)	15% withholding	At maturity (91–364 days)	Government of Kenya
SACCO deposits	~5–13% interest; dividends higher	5% on dividends	Slow; often loan-linked	SASRA regulated; no deposit insurance yet
Bank savings	~2–5%	15% withholding	Instant	KDIC cover up to KES 500,000

Five-year example

Option	Balance after 5 years
SACCO deposits	KES 920,104
Money market fund	KES 878,990
Treasury bills	KES 869,637
Bank savings	KES 762,078

KES 100,000 start plus KES 10,000 a month, after tax, using the comparison tool's default rates.

How to choose

Emergency fund: a money market fund. Good returns and money in a few days.
Money you won't touch for a year: T-bills through the CBK's DhowCSD app. See our T-bill guide.
Building towards a loan: a SACCO. Many lend up to three times your deposits.
Everyday cash: a bank or M-Pesa, but keep only what you need there.

SACCO rates reported for 2025

Some large SACCOs announced high returns for 2025: Stima paid 16% on share capital and 11% on deposits, Kenya National Police DT 17% and 11%, and Mwalimu National 13% and 10.05%. Rates vary a lot, and SACCO deposits are not yet covered by a deposit guarantee fund, so check that a deposit-taking SACCO is licensed by SASRA.

SACCO vs bank vs MMFChange the amounts and rates to compare the four options with your own numbers.

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Inflation: the hidden cost of "safe" savings

Inflation was 6.8% in September 2026. Money in an account paying 3% loses buying power every year. To grow in real terms, your savings need to earn more than inflation after tax. Money market funds and T-bills were roughly at or above inflation after tax in 2026, while ordinary savings accounts were well below.

A simple three-bucket plan

Emergency bucket: three to six months of spending in a money market fund.
Goals bucket (1–5 years): T-bills, bonds or a SACCO for a car, wedding or land deposit.
Retirement bucket: a pension, which gets tax relief now and tax-free benefits later.

See how your savings could grow over decades with the financial future simulator.

Red flags

Promised returns far above T-bill rates "with no risk".
Pressure to recruit friends to unlock returns.
Firms not licensed by the CMA, CBK or SASRA.
Payment requested to a personal M-Pesa or bank account.

Frequently asked questions

Which is better, a SACCO or a money market fund?

A SACCO often pays more and lets you borrow, but money is hard to withdraw. A money market fund pays a little less and you can withdraw in a few days.

How much do money market funds pay in Kenya in 2026?

Top funds reported roughly 10.5% to 11% a year before tax in September 2026, with many others between 8% and 10%.

Are SACCO deposits insured in Kenya?

Not yet. A SACCO deposit guarantee scheme has been proposed but was not in operation as of 2026. Bank deposits are covered by KDIC up to KES 500,000.

What tax do I pay on money market fund interest?

15% withholding tax, deducted by the fund.

Sources

Links are for reference only. METRIKA is independent and not affiliated with or endorsed by these organisations.

Last reviewed 1 Oct 2026. METRIKA gives estimates and general information, not financial, tax, legal or immigration advice.

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