MMF vs T-bills vs SACCO vs fixed deposit
By Arnold Ochieng · Money market funds hub · paybillke is an independent guide and is not affiliated with any fund manager.
In October 2026 the average money market fund paid 9.3% a year after fees, against 9.03% for the 1-year Treasury bill. Bank fixed deposits averaged 6.91% in August 2026. MMFs win on access, because you can withdraw on any working day. T-bills win on safety, because the government is the borrower. SACCOs suit savers who also want to borrow against their deposits.
Figures are dated
Not financial advice. The averages above are from TechTrendsKE, 19 October 2026. Check today's rates before you decide; individual fund yields are on our MMF rates page, each with its own date.
Which fits what
- Emergency fund, or money you may need this month: an MMF. Your money stays available and keeps earning daily.
- A lump sum you will not touch for 3 to 12 months: a T-bill. It pays about the same as an MMF, with the government as borrower and no management fee.
- You want a loan later: a SACCO. Your deposits set your borrowing limit, at a multiple each SACCO sets.
- You want more and can take swings: a special fund. These hold equities, offshore assets or private debt, can fall in value, and unlisted holdings can be slow to sell.
The trend to watch
MMF returns follow T-bill rates with a lag. As a fund's older, higher-yield holdings mature, they are replaced at lower rates. The 1-year T-bill fell from 9.39% to 9.03% over the year to October 2026, and the average MMF fell from 9.9% to 9.3%. 20 of the 26 funds tracked were paying less than a year earlier. If T-bill rates keep falling, expect MMF returns to follow.
Money is also shifting: MMFs held 48.5% of unit trust assets in the June 2026 quarter, and special funds 26.6% (TechTrendsKE, 19 October 2026).
Related: infrastructure bonds and the SACCO hub.
About this page
| Money market fund | Treasury bill | SACCO deposits | Bank fixed deposit | Special fund | |
|---|---|---|---|---|---|
| Return (latest) | 9.3% average after fees (15 October 2026) | 9.03%, 1-year (mid-October 2026) | Set yearly by each SACCO | 6.91% average (August 2026) | Varies widely; not comparable |
| Get your money | Any working day, per the fund's payout time | At maturity (91, 182 or 364 days), or sell early | Usually only on exit, with notice | At maturity; early exit may cost interest | Depends on the fund |
| Who regulates | CMA | CBK | SASRA (deposit-taking SACCOs) | CBK | CMA |
| Main risk | Low; holdings are short-term debt | Lowest: the government is the borrower | Governance of the SACCO | Low; KDIC covers deposits up to a limit | Higher: equities, offshore assets, private debt |
| Start with | KES 100 to 5,000 depending on the fund | Set by CBK; check before bidding | Set by each SACCO | Set by each bank | Set by each fund |
Frequently asked
Is an MMF better than a T-bill in Kenya?
They paid about the same in October 2026: 9.3% average for MMFs after fees and 9.03% for the 1-year T-bill. The MMF is easier to get money out of; the T-bill has the government as borrower and no management fee.
Is a SACCO better than an MMF?
A SACCO suits you if you want to borrow later, because deposits set your loan limit. An MMF suits money you may need at short notice, because most SACCOs only return deposits when you exit.