Money Market Fund (MMF) is a financial instrument where managers take money from clients, invest it in bonds, bills, Real Estate etc and then give each client their interest. Once you've Invested in Money Market Fund, yours is to chill and wait for interest.
Once you've joined a specific MMF, you can deposit as low as Kshs. 100 in an MMF like safaricom's Mali, while other MMFs have set the minimal deposit range at Ksh 100.
The good thing about investing in an MMF is you can withdraw part or whole of your savings at any time, which makes MMFs ideal for keeping emergency funds.
The interest clients earn can be as high as 14% while others range between 11.5% Some MMFs have a mobile app making it convenient to invest and transact with them.
Here are some MMFs in Kenya you could consider :
Cytonn Money Market Fund.
Sanlam Money Market Fund.
Etica Capital Money Market Fund.
Safaricom Mali Money Market Fund.
CIC Money Market Fund.
Apollo Money Market Fund.
Nabo Money Market Fund.
Co-op Money Market Fund.
NCBA Money Market Fund.
Old Mutual Money Market Fund.
GenCap Hela Imara Fund.
Madison Money Market Fund.
African Alliance Kenya Money Market Fund.
Kuza Money Market Fund.
Jubilee Money Market Fund.
To be safe, ensure that the MMF you want to use is regulated by Capital Markets Authority, which you can check on their website. It is also important to know the management fee, minimum amount and withdrawal processing time, however, most process withdrawals in under 48 hours.
DOLLAR ACCOUNTS YOU CAN OPEN IN KENYA.
A dollar account, also known as a USD account, is a type of bank foreign currency account denominated in United States dollars (USD). It allows individuals and businesses to hold, transact, trade, and invest in/with US dollars.
USD Bank Account.
USD bank accounts are savings and current accounts denominated in United States dollars (USD). These accounts allow individuals and businesses in Kenya to hold, transact, and save in USD, providing access to international financial markets and facilitating cross-border transactions.
USD Money Market Fund (MMF).
USD Money Market Funds are investment vehicles that pool funds from multiple investors to invest in short-term, low-risk securities such as treasury bills, commercial paper, and fixed deposits. Unlike traditional MMFs, you are required to invest using dollars as the account is denominated in USD.
USD Fixed Deposit (FD).
USD Fixed Deposit accounts are investment products offered by commercial banks, microfinance banks, and other deposit-taking financial institutions that allow customers to deposit funds for a fixed period at a predetermined interest rate. These accounts offer higher interest rates compared to savings accounts and provide a guaranteed return upon maturity.
USD Stable Coin Crypto Wallet.
USD Stable Coin Crypto Wallets are digital wallets that enable users to store, send, and receive USD-backed stablecoins, which are cryptocurrencies pegged to the value of the US dollar. These wallets provide a digital alternative to traditional bank accounts and offer instant, borderless transactions with minimal fees.
Holding funds in a dollar account provides a hedge against currency volatility, helps you diversify your cash holdings, and reduces depreciation risks associated with the local currency.