Money Market Funds in Kenya explained in 2 Mins!

MMF meaning Money Market Fund, is an example of a unit trust in Kenya. Money market funds in Kenya are low risk unit trusts that invest pooled funds in short term investments through a fund manager licensed by the Capital Market Authority (CMA). They are sometimes called Shilling Funds whereas their owners are called unitholders. Money market funds in Kenya are ideal for managing excess cash or short term investment goals. They offer higher returns than saving accounts while having the liquidity of a current account. There are no penalties for withdrawing the principal and you get to keep the interest earned. Money Market Funds are an example of an online investment with daily interest in Kenya. This is because money market funds such as Sanlam MMF and CIC MMF will calculate your interest daily and compound it monthly. Interest earned from MMFs in Kenya is charged 15% withholding tax (WHT). This is a preferential rate compared to the tax charged for example on employment income (30%).