13 April 2026
Money Market Funds vs T-Bills vs Infrastructure Bonds Kenya 2026: Where to Put KES 10,000
Money market funds vs T-Bills Kenya 2026 is a question more Kenyans are asking than ever before — and for good reason. Interest rates have fallen sharply from their 2024 highs, leaving savers hunting for the best returns on their idle cash.
Last updated: April 2026 | Reading time: 7 minutes
The problem is that most guides compare these options using vague language like “competitive returns” or “low risk” without giving you the actual numbers. This guide does the opposite. We use real, current 2026 data to show you exactly what each option pays, what it costs to access, how long your money is locked up, and most importantly — which one is right for your specific situation.
Whether you have KES 5,000 or KES 500,000, there is a right answer for you. Here it is.
The Quick Answer: Which Is Best Right Now?
Before the detail, here is the summary for people who need a fast answer.
| Money Market Fund | T-Bills (91-day) | T-Bills (364-day) | Infrastructure Bond | |
|---|---|---|---|---|
| Current return (gross) | 9%–11% | 7.4% | 8.5% | 12%–14% |
| Tax | 15% WHT on returns | Zero WHT | Zero WHT | Zero — tax free |
| Effective net return | 7.6%–9.3% | ~8.7% equivalent | ~10% equivalent | 12%–14% (tax free) |
| Minimum investment | KES 100–5,000 | KES 100,000 | KES 100,000 | KES 50,000 |
| Liquidity | 1–4 days | Locked 91 days | Locked 364 days | Locked 2–25 years |
| Best for | Emergency fund, short-term savings | Parking cash for 3 months | Parking cash for 12 months | Long-term wealth building |
The tax exemption on T-Bills and Infrastructure Bonds is the key number most people miss. A 7.4% T-Bill with zero withholding tax is equivalent to roughly 8.7% on an MMF that charges 15% WHT. Once you factor that in, T-Bills are far more competitive than they appear on the surface.
Money Market Funds in Kenya 2026: The Full Picture
What they are
A Money Market Fund (MMF) is a CMA-regulated pool of investors’ money that a professional fund manager invests in low-risk, short-term instruments — primarily government Treasury bills, fixed bank deposits, and high-grade commercial paper. Your money earns interest daily and you can withdraw within 1–4 working days.
What they pay right now
As of February–April 2026, top MMF gross returns are:
| Fund | Gross return (EAR) | Net after 15% WHT |
|---|---|---|
| Cytonn Money Market Fund | ~11.05% | ~9.39% |
| Arvocap Money Market Fund | ~10.93% | ~9.29% |
| Nabo Africa MMF | ~10.89% | ~9.26% |
| Gulfcap Money Market Fund | ~10.86% | ~9.23% |
| Enwealth Money Market Fund | ~10.34% | ~8.79% |
| Sanlam Money Market Fund | ~9–10% | ~7.6%–8.5% |
| Britam Money Market Fund | ~9.4–10% | ~8%–8.5% |
| Zimele (Old Mutual) | ~10–12% | ~8.5%–10.2% |
Market average: approximately 9% EAR gross, or around 7.6% net after tax.
Note: Returns have been falling since the 2024 highs of 14%–17%. They are expected to stabilise in the 9%–11% range as CBK has paused rate cuts.
What it costs to start
The barriers are almost zero. Zimele and Cytonn accept KES 100 as a minimum investment. Most funds accept KES 1,000–5,000. You invest via M-Pesa and track your balance on an app. No CDS account needed, no forms to fill at the CBK.
The catch
The 15% withholding tax on interest earnings is deducted automatically before you see the return. A fund advertising 11% gross effectively delivers about 9.35% to your pocket. Always check the net return, not the headline figure.
Best for
- Emergency savings (need access within a few days)
- Saving for a specific goal 3–18 months away (house deposit, school fees, car)
- Anyone with less than KES 100,000 to invest
- First-time investors who want simplicity
Treasury Bills in Kenya 2026: The Tax-Free Hidden Gem
What they are
Treasury bills are short-term government debt. You buy a T-Bill at a discount and receive the full face value at maturity. The difference is your return. There are three types: 91-day (3 months), 182-day (6 months), and 364-day (12 months). All are auctioned weekly by the CBK.
What they pay right now
Current rates as of April 2026:
| T-Bill type | Current rate | Lock-up period |
|---|---|---|
| 91-day | 7.40% | 3 months |
| 182-day | 7.83% | 6 months |
| 364-day | 8.48% | 12 months |
These numbers look lower than MMFs — until you factor in tax. As of March 2026, interest on T-Bills is exempt from withholding tax for individual investors. This makes a significant difference:
| MMF at 11% gross | 91-day T-Bill at 7.4% | |
|---|---|---|
| Gross return | 11% | 7.4% |
| Tax deducted | 15% WHT | Zero |
| Net return | ~9.35% | ~8.7% pre-tax equivalent |
A 7.4% T-Bill is equivalent to earning roughly 8.7% on a taxable instrument. And the 364-day T-Bill at 8.48% is equivalent to about 10% pre-tax — beating the net return of most MMFs while carrying zero credit risk.
How to invest in T-Bills in 2026
The process is now fully digital through the CBK DhowCSD app:
- Download the DhowCSD app (Google Play or Apple App Store) or visit dhowcsd.centralbank.go.ke
- Open a free CDS account using your National ID and KRA PIN
- Wait 1–3 days for account activation
- Transfer funds via M-Pesa Paybill 200222
- Choose your T-Bill tenor and submit a non-competitive bid (recommended — you are guaranteed allocation at the market rate)
- Results come same day as the auction (Wednesdays for 91-day and 182-day; monthly for 364-day)
The catch
The minimum is KES 100,000, in multiples of KES 50,000. This puts T-Bills out of reach for many small savers and is the main advantage MMFs hold over T-Bills for people just starting out.
Your money is also locked for the full tenor. If you need it before 91 days or 364 days are up, you can sell on the secondary market — but this involves paperwork and may not always be possible quickly. T-Bills are not as liquid as MMFs.
Best for
- Anyone with KES 100,000 or more sitting in a bank savings account earning 2%–3%
- Savers who do not need access to funds for 3, 6, or 12 months
- Anyone who wants guaranteed government-backed returns with zero tax deducted
- Investors who want a predictable, fixed return rather than a fluctuating daily rate
Pro tip: Many investors “ladder” T-Bills — buying 91-day bills every month so that one matures every 30 days. This creates near-monthly liquidity while still earning tax-free returns above most savings accounts.
Infrastructure Bonds in Kenya 2026: The Long-Term Wealth Builder
What they are
Infrastructure bonds are long-term government bonds (typically 2–25 years) where the proceeds fund specific national projects — roads, schools, hospitals, energy. They pay interest semi-annually (every 6 months) and return your principal at maturity. They are issued by the National Treasury through the CBK and listed on the NSE.
The big advantage over regular bonds: infrastructure bond interest is completely tax-free. No withholding tax, no capital gains tax on the coupon. What the bond pays is what you receive.
What they pay right now
Recent infrastructure bond coupon rates in Kenya have ranged from 12% to 14% per annum, depending on the tenor and issue. With zero withholding tax, this is a genuine 12%–14% net return — significantly higher than any MMF net return in the current market.
A 10-year government bond yield as of April 2026 stands around 11.27%, giving a sense of the long-term rate environment.
How to invest in Infrastructure Bonds
- Open a CBK DhowCSD account (same as T-Bills above)
- Watch for Infrastructure Bond announcements on cbk.go.ke and in daily newspapers
- Minimum investment is KES 50,000, in multiples of KES 50,000
- Submit your application through DhowCSD or your bank
Infrastructure bonds are frequently oversubscribed — meaning demand exceeds supply. Non-competitive bids are recommended to guarantee allocation.
The catch
Your money is locked up for the full term — potentially 5, 10, or even 25 years. While infrastructure bonds can be sold on the NSE secondary market, liquidity there is limited and you may not find a buyer quickly or at a price you like.
They also require a longer-term mindset. If you need the money in 2 years for school fees, an infrastructure bond is the wrong vehicle.
Best for
- Long-term wealth building and retirement savings
- Investors who receive semi-annual interest payments as income
- Anyone with KES 50,000+ they will not need for at least 5 years
- People who want the highest guaranteed return in Kenya with zero tax
The Real Comparison: KES 100,000 Invested for 12 Months
To make this concrete, here is what KES 100,000 earns in each vehicle over one year:
| Vehicle | Gross return | Tax paid | Net return | KES earned |
|---|---|---|---|---|
| Bank savings account | 3% | 15% WHT | 2.55% | KES 2,550 |
| MMF (average) | 9% | 15% WHT | 7.65% | KES 7,650 |
| MMF (top performer) | 11% | 15% WHT | 9.35% | KES 9,350 |
| 91-day T-Bill (rolled 4x) | 7.4% | Zero | 7.4% | KES 7,400 |
| 364-day T-Bill | 8.48% | Zero | 8.48% | KES 8,480 |
| Infrastructure Bond | 13% | Zero | 13% | KES 13,000 |
The infrastructure bond wins by a wide margin for anyone who can commit for the full term. For money you might need back within a year, top-performing MMFs and the 364-day T-Bill are closely matched — with the T-Bill having the edge in security and tax efficiency, and the MMF having the edge in liquidity.
Which Should You Choose? The Decision Framework
You have KES 5,000–99,000: → Money Market Fund. T-Bills require KES 100,000 minimum. Start with Zimele (KES 100 min), Cytonn, or Britam via M-Pesa.
You have KES 100,000+ and need access within 3 months: → 91-day T-Bill or MMF. Both work; T-Bill wins on tax efficiency if you do not mind the lock-up.
You have KES 100,000+ and will not need it for 6–12 months: → 364-day T-Bill. Tax-free, government-guaranteed, higher net return than most MMFs.
You have KES 50,000+ and are saving for 5+ years: → Infrastructure Bond. Highest net return, completely tax-free, government-backed.
You want a mix: → Keep 3–6 months of expenses in an MMF as your emergency fund. Put the rest in T-Bills or Infrastructure Bonds depending on your time horizon. This is the approach most Kenyan financial advisors recommend.
Getting Started Today
For MMFs: Download the fund manager’s app (Cytonn, Britam, Sanlam, Old Mutual/Zimele) or use M-Pesa to invest. Most are operational within minutes.
For T-Bills and Infrastructure Bonds: Download the DhowCSD app or visit dhowcsd.centralbank.go.ke. Have your National ID, KRA PIN, and an M-Pesa registered number ready. Account opening is free and takes 1–3 days.
The best time to start was six months ago. The second best time is today.
Returns quoted are as of April 2026 based on published CBK data, CMA-regulated fund factsheets, and Serrari Kenya MMF index. Returns are not guaranteed and may change. This article is for informational purposes only and does not constitute financial advice. Verify current rates directly before investing.
Sources: CBK DhowCSD (T-Bill rates April 2026), Serrari Kenya MMF Index, Vasili Africa MMF Report February 2026, CBK Treasury Bills and Bonds pages.
Related guides:
- Safaricom Dividend 2026 — KES 0.85 interim paid, final TBC April 30
- Safaricom Share Price 2026 — price history and analyst targets
- Safaricom Stock 2026: Buy, Hold or Sell? — full investment case
- Best Kenyan Stocks 2026 — Safaricom vs KCB vs Equity vs KenGen
- NSE Dividend Calendar 2026 — all upcoming payment dates
- NSE Trading Hours Kenya 2026 — T+3 settlement and book close guide
- Equity Bank Dividend 2026 — May 22 record date — next urgent deadline