Before you invest in a Money Market Fund (MMF), use this calculator to see exactly how much you’ll earn. Most young Kenyans leave money in savings accounts earning 0-2% when MMFs pay 14-18% annually – that’s KSh 14,000-18,000 on every KSh 100,000 you invest.
Money Market Funds are the smartest place to park emergency cash, salary savings, and short-term money while earning real returns.
Use our Net Pay Calculator to see your take-home salary, then use this MMF calculator to plan where to invest those savings.
What is a Money Market Fund? #
A Money Market Fund pools investor money to buy short-term, high-quality debt securities like:
- Treasury Bills – Government securities (91, 182, 364 days)
- Commercial Paper – Corporate short-term debt
- Bank Deposits – Fixed deposits with banks
- Repurchase Agreements – Short-term lending to financial institutions
Key benefits:
- Low risk – Invests in safe, government-backed securities
- High liquidity – Withdraw within 1-3 business days
- Better returns – 14-18% annually vs 0-2% in savings accounts
- No lock-in period – Access your money anytime
- Low minimum – Start with KSh 1,000-5,000
Licensed and regulated by Capital Markets Authority (CMA).
Why You Need This Money Market Fund Calculator #
Before you invest, this MMF calculator shows you:
- Exact interest earnings over your chosen period (days, months, years)
- Total returns including compounded interest
- Growth timeline to hit your savings goals
- Comparison between different MMF yields (14% vs 16% vs 18%)
- Emergency fund growth – see how KSh 50,000 grows to 3-month cushion
Real example most Kenyans miss:
Savings account (2% p.a.): KSh 100,000 → KSh 102,000 after 1 year (earn KSh 2,000)
Money Market Fund (16% p.a.): KSh 100,000 → KSh 116,000 after 1 year (earn KSh 16,000)
You lose KSh 14,000 every year by keeping money in regular savings!
How to Use This Money Market Fund Calculator #
Step 1: Enter Investment Amount
- Minimum: KSh 1,000 (some funds like Sanlam MMF)
- Maximum: No limit
- Example: KSh 50,000 (emergency fund), KSh 100,000 (salary savings)
Step 2: Input Annual Yield
- Check current MMF rates (14-18% as of 2026)
- Examples:
- CIC Money Market Fund: ~15%
- Britam Money Market Fund: ~16%
- Sanlam Money Market Fund: ~16-17%
- NCBA Money Market Fund: ~15-16%
Compare current rates on CMA approved funds list.
Step 3: Select Investment Period
- Short-term: 1-6 months (emergency fund, salary savings)
- Medium-term: 6-12 months (down payment, vacation fund)
- Long-term: 1+ years (education fund, business capital)
Step 4: Choose Compounding Frequency
- Daily compounding – Interest calculated and added daily (highest returns)
- Monthly compounding – Interest added monthly
- Quarterly compounding – Interest added every 3 months
- Annual compounding – Interest added yearly
Most Kenyan MMFs compound daily, which maximizes your returns.
Step 5: Review Results
- Interest earned over period
- Total balance (principal + interest)
- Effective annual yield with compounding
- Monthly breakdown of growth
Real Money Market Fund Calculations – Kenya Examples #
Example 1: Emergency Fund Building (6 Months) #
Scenario: Fresh graduate saving emergency fund
Using the MMF calculator:
- Initial investment: KSh 20,000 (first salary savings)
- Monthly additions: KSh 5,000
- MMF yield: 16% p.a.
- Period: 6 months
- Compounding: Daily
Results:
- Total contributed: KSh 45,000
- Interest earned: KSh 2,340
- Final balance: KSh 47,340
- Emergency fund: Covers 1.5 months expenses
Compare to savings account at 2%:
- Interest earned: KSh 292
- You lose: KSh 2,048 in potential earnings!
Example 2: Salary Savings (12 Months) #
Scenario: Salaried worker saving monthly
Using the MMF calculator:
- Initial investment: KSh 50,000
- Monthly additions: KSh 10,000
- MMF yield: 17% p.a.
- Period: 12 months
- Compounding: Daily
Results:
- Total contributed: KSh 170,000
- Interest earned: KSh 16,830
- Final balance: KSh 186,830
- Bonus: Enough for down payment on asset
Alternative: Leaving in bank savings account
- Interest earned: KSh 2,125
- Lost opportunity: KSh 14,705!
Example 3: Business Capital Accumulation (24 Months) #
Scenario: Entrepreneur saving for business expansion
Using the MMF calculator:
- Initial investment: KSh 100,000
- Monthly additions: KSh 15,000
- MMF yield: 16% p.a.
- Period: 24 months
- Compounding: Daily
Results:
- Total contributed: KSh 460,000
- Interest earned: KSh 54,670
- Final balance: KSh 514,670
- Capital ready: KSh 500,000+ for business
Bank savings account alternative:
- Interest earned: KSh 6,834
- Massive loss: KSh 47,836 foregone!
Example 4: Lump Sum Investment (3 Months) #
Scenario: Bonus payment parking
Using the MMF calculator:
- Initial investment: KSh 200,000 (bonus/severance pay)
- Monthly additions: KSh 0
- MMF yield: 15% p.a.
- Period: 3 months
- Compounding: Daily
Results:
- Interest earned: KSh 7,650
- Final balance: KSh 207,650
- Liquidity: Access within 24-72 hours if needed
Fixed deposit alternative (3 months):
- Lock-in period: Can’t access
- Interest: ~10% p.a. = KSh 5,000
- MMF advantage: KSh 2,650 more + full liquidity
Use our Compound Interest Calculator to model longer investment periods.
Best Money Market Funds in Kenya (2026 Rates) #
Compare these options using the MMF calculator:
Top Performing MMFs #
1. Sanlam Money Market Fund
- Yield: 16-17% p.a.
- Minimum: KSh 5,000
- Liquidity: T+1 (next day)
- Best for: Emergency funds, salary savings
- Sanlam MMF Details
2. CIC Money Market Fund
- Yield: 15-16% p.a.
- Minimum: KSh 10,000
- Liquidity: T+2 (2 days)
- Best for: Medium-term savings
- CIC MMF Details
3. Britam Money Market Fund
- Yield: 15-17% p.a.
- Minimum: KSh 5,000
- Liquidity: T+1
- Best for: Balanced growth and access
- Britam MMF Details
4. NCBA Money Market Fund
- Yield: 15-16% p.a.
- Minimum: KSh 1,000
- Liquidity: T+2
- Best for: First-time investors
- NCBA MMF Details
5. Co-op Bank Money Market Fund
- Yield: 14-15% p.a.
- Minimum: KSh 5,000
- Liquidity: T+1
- Best for: Co-op Bank account holders
- Co-op MMF Details
Check current yields on CMA approved list as rates change based on Central Bank of Kenya base rate.
MMF Calculator Strategy: Maximize Your Returns #
Strategy 1: Emergency Fund Growth #
Goal: Build 3-6 months expenses in MMF
Using the calculator:
- Month 1: Invest KSh 20,000 initial
- Months 2-12: Add KSh 10,000 monthly
- MMF yield: 16% p.a.
- After 12 months: KSh 144,320 total
If 3 months expenses = KSh 150,000:
- You’re 96% to your goal
- Earned KSh 14,320 interest vs KSh 1,790 in savings account
Strategy 2: Salary Parking Strategy #
Goal: Maximize returns on monthly salary before bills
Using the calculator:
- Salary arrives Day 1: KSh 80,000
- Bills due Day 25
- Keep in MMF for 24 days at 16% p.a.
Results:
- Interest earned: KSh 842/month
- Annual bonus: KSh 10,104 just from smart parking!
Compare to leaving in checking account:
- Interest: KSh 0
- Free money missed: KSh 10,104/year
Strategy 3: Bonus/Windfall Investment #
Goal: Grow lump sum payments
Using the calculator:
- Bonus received: KSh 150,000
- MMF yield: 17% p.a.
- Period: 6 months (until next goal)
Results:
- Interest earned: KSh 13,178
- Total: KSh 163,178
- Use for: Down payment, business capital, investment
Alternative (leaving in savings at 2%):
- Interest: KSh 1,550
- Opportunity cost: KSh 11,628 lost!
Strategy 4: Systematic Investment Plan (SIP) #
Goal: Consistent wealth building
Using the calculator:
- Monthly SIP: KSh 15,000
- MMF yield: 16% p.a.
- Period: 36 months (3 years)
Results:
- Total contributed: KSh 540,000
- Interest earned: KSh 97,240
- Final balance: KSh 637,240
Milestone achievements:
- Year 1: KSh 193,560
- Year 2: KSh 407,890
- Year 3: KSh 637,240
This becomes capital for property down payment, business startup, or higher-yield investments.
Money Market Fund vs Other Savings Options #
Use the MMF calculator to compare costs:
For KSh 100,000 investment over 12 months:
| Option | Annual Yield | Interest Earned | Liquidity | Risk |
|---|---|---|---|---|
| MMF | 16% | KSh 16,000 | T+1 to T+2 | Very Low |
| Savings Account | 2% | KSh 2,000 | Instant | Very Low |
| Fixed Deposit | 10% | KSh 10,000 | Locked 12 months | Very Low |
| Treasury Bills | 15-16% | KSh 15,000-16,000 | Locked 91-364 days | Very Low |
| Sacco Shares | 12-15% | KSh 12,000-15,000 | Limited | Low |
MMF advantages:
- ✅ High returns (16%+)
- ✅ Full liquidity (1-2 days)
- ✅ Low minimum (KSh 1,000-5,000)
- ✅ Daily compounding
- ✅ No lock-in period
When to choose alternatives:
- Treasury Bills: If you can lock money 91+ days and buy minimum KSh 100,000
- Fixed Deposit: If bank offers 12%+ and you don’t need money
- Sacco: If you want dividend potential beyond interest
Compare government securities at Central Bank of Kenya.
Tax Implications on MMF Returns #
Withholding Tax: 15% on MMF interest earnings
Example using MMF calculator:
- Investment: KSh 100,000
- Yield: 16% p.a.
- Gross interest: KSh 16,000
- Tax (15%): KSh 2,400
- Net interest: KSh 13,600
- Effective yield: 13.6% (still way better than 2% savings!)
Tax-free alternatives:
- Treasury Bills under KSh 100,000 (first KSh 100K income tax-free)
- Pension contributions (NSSF) – check NSSF Calculator
Learn more about investment taxation from Kenya Revenue Authority.
Common MMF Calculator Mistakes to Avoid #
Mistake 1: Forgetting About Compounding #
Wrong calculation: Simple interest only
- KSh 100,000 at 16% for 1 year = KSh 16,000 interest
Correct with daily compounding:
- Interest: KSh 17,351 (daily compounding adds KSh 1,351!)
Always select daily compounding in the MMF calculator for accurate results.
Mistake 2: Not Factoring in Withdrawals #
If you withdraw money mid-period, you lose interest on that amount.
Example:
- Start: KSh 100,000
- Month 6: Withdraw KSh 50,000
- Months 7-12: Only KSh 50,000 earning interest
Use the MMF calculator to model different withdrawal scenarios.
Mistake 3: Comparing Gross Yields Only #
Fund A: 18% gross yield – 2% fees = 16% net
Fund B: 16% gross yield – 0.5% fees = 15.5% net
Fund A is still better despite lower net yield.
Check CMA fund fact sheets for fee structures.
Mistake 4: Ignoring Fund Size and Stability #
Red flags:
- MMF with less than KSh 500 million in assets
- Inconsistent monthly yields (14% one month, 8% next)
- New fund with no track record
Check:
- Fund size on CMA website
- Historical returns (3+ years)
- Fund manager reputation
When Money Market Funds Make Sense #
Use MMFs For: #
✅ Emergency Fund (3-6 months expenses)
- High liquidity for unexpected costs
- Better returns than savings account
- No penalties for withdrawal
✅ Short-Term Savings Goals (3-24 months)
- Down payment for car/house
- Wedding fund
- Vacation savings
- Education fees
✅ Salary Parking
- Keep monthly salary earning 16% until bills due
- Better than 0% checking account
✅ Between Major Investments
- Sold property, waiting to buy another
- Received inheritance, planning investment
- Business revenue before expansion
✅ Risk-Averse Savings
- Don’t want stock market volatility
- Need guaranteed returns
- Prefer safety over high growth
Don’t Use MMFs For: #
❌ Long-Term Wealth Building (5+ years)
- Use equity funds, stocks, real estate instead
- Inflation (8-10%) erodes real returns
- Better options: Balanced Funds, REIT, Stocks
❌ Money You Need Today/Tomorrow
- T+1 to T+2 withdrawal time
- Keep daily cash in checking account
❌ Chasing Maximum Returns
- Equity funds can give 15-25%+ annually
- MMFs are stable 14-18%, not high growth
How to Open a Money Market Fund Account #
Step 1: Choose Your MMF
- Use the calculator to compare yields
- Check CMA approved list
- Read fund fact sheets
Step 2: Gather Requirements
- National ID or Passport
- KRA PIN certificate
- Passport photo
- Completed application form
- Initial deposit (KSh 1,000-10,000)
Step 3: Submit Application
- Online: Most funds offer digital onboarding
- Physical: Visit fund manager office
- Agent: Through banks or Saccos
Step 4: Funding
- M-Pesa Paybill
- Bank transfer
- Standing order for monthly SIP
Step 5: Start Earning
- Interest accrues daily
- View balance on portal/app
- Withdraw anytime (T+1 to T+2)
Popular MMF platforms:
Start Calculating Your MMF Returns Now #
Scroll up and use the Money Market Fund calculator to see how much your savings can earn.
Quick calculation checklist:
- Enter your current savings or monthly amount
- Input 16% yield (average MMF rate)
- Select investment period (3, 6, 12 months)
- Choose daily compounding for maximum returns
- Compare results with your current savings account
Every KSh 100,000 in regular savings losing KSh 14,000/year!
Related Calculators:
- Net Pay Calculator – See your take-home for saving
- Compound Interest Calculator – Long-term investment growth
- Hustler Fund Calculator – Compare emergency loan costs
- PAYE Calculator – Calculate tax on investment income
- Loan Repayment Calculator – See what you save by investing vs borrowing
External Resources:
- Capital Markets Authority (CMA) – Approved MMFs list
- Central Bank of Kenya – Treasury bill rates
- Sanlam Money Market Fund – Top performer
- CIC Money Market Fund – Competitive rates
- Britam Money Market Fund – Reliable option
- Kenya Revenue Authority – Tax information
- Financial Sector Deepening Kenya – Financial literacy
Disclaimer: Money Market Fund calculator provides estimates based on inputs. Actual returns vary based on fund performance, market conditions, and Central Bank of Kenya rates. Past performance doesn’t guarantee future returns. MMF yields quoted are indicative based on January 2026 rates. All MMF returns subject to 15% withholding tax. Verify current yields with fund managers. Check CMA website for latest approved funds list.
Pro tip: Don’t leave salary in a checking account earning 0%. Even parking it in an MMF for 3 weeks before bills are due generates free money. KSh 80,000 salary at 16% p.a. for 21 days = KSh 738 interest. Do this monthly = KSh 8,856 annual bonus just from smart parking! Use the MMF calculator to see your potential monthly interest earnings.
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