Where Can I Save Money and Earn Interest in Kenya? Top 6 Reliable Options.

If you're asking yourself, "Where can I save money and earn interest in Kenya?" You’re not alone. With the rising cost of living, many Kenyans are looking for smart ways to grow their savings while keeping their money safe. The good news is, several options offer both security and attractive interest rates. So, whether you’re a beginner or someone with some financial experience, here are some of the best investment options that you can try.

1. Money Market Funds (MMFs)

MMFs are ideal for low-risk investors, often managed by licensed fund managers. They pool money from different investors and invest in short-term, low-risk securities. Some of the top MMFs in Kenya offer interests of about 8%–11% annually, and you can start with as little as Ksh 500. An example is Ndovu, where we provide an annual return of 13.6%. 

2. SACCO Savings and Deposits

SACCOs (Savings and Credit Cooperative Organizations)offer a unique opportunity to earn interest of up to 10%–15 % annually. SACCOs not only grow your money but also give you access to affordable loans based on your savings. Ndovu offers the USD Money Market Fund (USD MMF), which allows you to save in U.S. dollars, helping you preserve value against currency fluctuations while earning stable returns. It’s ideal for savers who want low-risk, interest-bearing returns but with the convenience of accessing and managing their savings through a mobile app.

3. Treasury Bills and Bonds

The Central Bank of Kenya offers treasury bills and bonds that pay regular interest. While treasury bills are short-term and don't pay monthly, treasury bonds usually pay interest every six months. As an alternative, Ndovu offers the Safety Net fund, which is an exchange traded fund that invests in low-risk high-quality US government and corporate bonds. This fund mirrors the security and income stability of treasury products, making it ideal for cautious investors who want their money to grow safely while remaining relatively accessible.

4. Fixed Deposit Accounts

Offered by banks and SACCOs, fixed deposit accounts allow you to lock in your money for a specific period and earn a set interest rate. They usually offer interest of 6%–10% annually and a lock-in period, typically 3-12 months. This is a good option if you don’t need immediate access to your money.

5. High-Interest Savings Accounts

Some banks offer special savings accounts with better interest rates than current accounts. They usually offer interest of 3%–7%, depending on the bank and amount saved. They are ideal if you want to save consistently while keeping access to your funds. Ndovu is a platform that allows you to automatically save and invest small amounts regularly. Unlike traditional savings accounts, your funds are actively working for you in high-performing, goal-based portfolios with the potential to outpace bank interest rates.

6. Real Estate Rentals

Investing in rental property is a popular way to generate monthly income. Whether it’s a residential house, apartment, or even bedsitters in busy towns, rental properties offer consistent returns. With the right management and a good location, real estate can provide a steady source of income. Ndovu offers a product called the Property Mogul fund, which is an exchange traded fund that allows you to invest in real estate without directly buying property. By investing, you can earn dividends from real estate investments with lower capital requirements and without the hassles of property management.

Final Thoughts on Where to Save Money and Earn Interest in Kenya.

Building a monthly income from investments in Kenya is entirely possible. The key is to assess your risk tolerance, starting capital, and income expectations. From real estate to SACCOs and money market funds, there are many paths to choose from, each with its pros and cons. To succeed, focus on diversification and always do your research. Always do your due diligence or speak to a licensed financial advisor before diving in.

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.