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Investing, explained in plain language

Free beginner-friendly explainers on the instruments available to Kenyan investors.

Money Market Funds (MMFs)

A pooled fund that invests in short-term, low-risk instruments like T-Bills and bank deposits. Returns accrue daily and you can usually withdraw within a few days. Regulated by the Capital Markets Authority (CMA).

  • Low risk, not risk-free
  • Check fees and the effective annual yield
  • Good for emergency savings

Treasury Bills

Short-term government debt sold by the Central Bank of Kenya in 91, 182 and 364-day tenors. You buy at a discount and receive the full face value at maturity.

  • Bid via the CBK DhowCSD platform
  • Minimum KSh 100,000 face value
  • Returns subject to withholding tax

Treasury Bonds

Longer-term government debt (2–30 years) that pays a fixed coupon, usually every six months. Infrastructure bonds may be tax-exempt.

  • Prices can move on the secondary market
  • Minimum KSh 50,000 at auction
  • Suited to income-focused investors

Exchange-Traded Funds (ETFs)

Funds listed on the NSE that track an index or asset (such as gold) and trade like a share through your CDS account.

  • Instant diversification
  • Watch liquidity and tracking
  • Bought through a licensed broker

Collective Investment Schemes (CIS)

Unit trusts pooling money from many investors into equity, bond, balanced or money market funds managed by professionals.

  • Check CMA licensing
  • Understand fees and lock-ins
  • Past returns don't guarantee future ones