T-Bill Yields Are Dropping in Kenya: What It Means for Your Money Market Fund Interest Rate

If you’ve been relying on a Money Market Fund (MMF) to park your savings in Kenya, you may have heard money market fund interest rates are expected to drop as Kenya’s 364-day T-bill yield falls below 10%. But what does this actually mean for your money, and what should you do? Let’s break it down.

Money Market Fund Interest Rates in Kenya Are Dropping

MMFs in Kenya including those from Sanlam, Jubilee, and Ndovu's money market fund typically invest their money in short-term, low-risk instruments like Treasury Bills (T-bills). The 364-day T-bill, in particular, is a benchmark tool. When its yield drops, as we’re seeing now, it signals a potential decline in the interest your MMF earns.

So, if you were earning 12% in the past, you might see that rate fall closer to 9% or even lower. And with management fees still in place, your real return might shrink even more.

Why is this happening? 

It could be due to a variety of macroeconomic shifts—cooling inflation, changes in monetary policy by the Central Bank of Kenya, or rising demand for T-bills as investors flock to safer assets. Whatever the reason, the result is the same: lower MMF yields in Kenya.

The Solution: Don’t Pull Out, Diversify with a Dollar MMF

Many investors panic at the first sign of declining returns. But this is not the time to pull out, it’s the time to strategically diversify.

If you’re using Ndovu, you have access to two strong options:

1. The Ndovu Fund (KES) is great for Kenyan shilling stability and liquidity.

2. The Ndovu Dollar Money Market Fund – an ideal hedge against falling local rates and currency volatility.

   
   

By investing a portion of your savings in the Ndovu Dollar MMF, you gain exposure to USD-denominated assets that may not be affected by local interest rate changes. It’s a smart way to spread your risk while maintaining the benefits of low-risk, interest-generating investments.

Conclusion

Money Market Funds are still one of the safest places to save and grow your money, especially compared to a regular bank account. Even with declining rates, they offer liquidity, stability, and security.

But the key now is strategic action. Don’t exit your MMF blindly, instead, rebalance your savings by combining local MMFs like Ndovu's money market fund with global exposure through the Ndovu dollar MMF. The financial landscape may be shifting, but with the right tools and diversification, you can still grow your money.

Disclosure:

 Ndovu is a regulated Robo-advisory platform operated by Ndovu Wealth Limited (‘NWL’). NWL is a Fund Manager licensed by the Capital Markets Authority (Kenya).

The information provided on this platform and the products and services offered are intended solely for persons in regions and jurisdictions where such distribution and utilization are in accordance with local laws and regulations. Ndovu does not promote its services in regions where it lacks the necessary licenses; It is exclusively available to persons residing in countries where it holds a valid license or has regulated partners. Ndovu does not extend its services to citizens of the United States, Canada, Japan, and other restricted territories.

Disclaimer:

 All ETF products are subject to risk, including country/regional, liquidity, and currency risks. Market prices of securities within the ETF may rise and fall, sometimes rapidly and unpredictably. While ETFs provide diversification through exposure to a basket of securities, they do not eliminate the risk of loss. Diversification does not ensure a profit or protect against a loss. These are non-cis products and are registered by the SEC.