Invest & Save · 🇰🇪 Kenya
How to start investing in Kenya
Kenya has some of the easiest low-risk options in Africa: money market funds you can open from your phone, and Treasury bills and bonds you can buy directly from the Central Bank on DhowCSD. Start there, then add shares and a pension as your savings grow.
Your options, from safest to riskiest
| Option | What it is | Returns | Getting your money | Tax | Risk |
|---|---|---|---|---|---|
| Money market funds (MMFs) | Unit trusts that lend to banks and the government for short periods. The most popular way Kenyans save: KES 442 billion, or 52% of all unit trust money, in March 2026. | Yields vary by fund and change daily. Two quoted in July 2026 were 8.43% and 10.11% a year, calculated in different ways.Serrari: Kenya savings, CIS and long-term wealth (Jul 2026) | Usually within a few working days | Interest is taxed at source (withholding tax, final for individuals) | Low |
| Treasury bills (91, 182, 364 days) | Short loans to the government, bought on the Central Bank's DhowCSD portal or app. | The 91-day bill yielded 8.799% on 20 July 2026. Rates change at every weekly auction.Serrari: Kenya savings, CIS and long-term wealth (Jul 2026) · FNJ Associates: withholding tax in Kenya (updated Oct 2026) | At maturity; selling early is possible but not simple | 15% withholding tax on the interest | Very low |
| Treasury and infrastructure bonds | Longer government loans (2–25 years) that pay interest every six months. Bought on DhowCSD, from KES 50,000 for a non-competitive bid. | Fixed coupon set at each auction; see the monthly prospectus.MMFs Kenya: how to buy Treasury bonds on DhowCSD (Jun 2026) · FNJ Associates: withholding tax in Kenya (updated Oct 2026) | Sell on the NSE bond market, or hold to maturity | 15% under 10 years, 10% for 10 years or more; infrastructure bonds are exempt | Low |
| Shares and ETFs on the NSE | Part-ownership of companies like Safaricom or Equity Group, bought through a licensed stockbroker. | Dividends plus price changes. Prices can fall a lot in bad years. | Sell on any trading day | Dividend withholding tax applies | High |
| Individual pension plan (IPP) | A personal retirement plan regulated by the Retirement Benefits Authority, for people without an employer pension or who want to save more. | Depends on the fund's investments, usually a mix of bonds and shares.Retirement Benefits Authority: individual pension plans | Locked until retirement, with limited exceptions | Contributions up to KES 30,000 a month are tax-exempt, and so are the returns on them | Low |
Rates and limits change. Check the provider's latest fact sheet or offer before you invest.
Tax breaks and retirement in Kenya
Pension tax relief
Contributions to a registered pension or individual pension plan of up to KES 30,000 a month (KES 360,000 a year) are tax-exempt, and the investment returns on them are too.
Source: Retirement Benefits Authority: individual pension plansInfrastructure bonds
Interest on infrastructure bonds is exempt from withholding tax. Other Treasury bonds pay 10% or 15% depending on their term, and Treasury bills 15%.
Source: FNJ Associates: withholding tax in Kenya (updated Oct 2026)How to start, step by step
- Build an emergency fund of three to six months' spending in a money market fund before anything else.
- Open a DhowCSD account with the Central Bank to buy Treasury bills and bonds directly, without a middleman.
- If you have no employer pension, compare RBA-registered individual pension plans and use the tax relief.
- Add NSE shares or an ETF through a CMA-licensed stockbroker only for money you will not need for five years or more.
- Write your plan down and add money every month, ideally by standing order or M-Pesa on payday.
Check before you send money
Every fund manager, pension provider and broker should be on an official register. If it is not, do not invest.
- CMA: approved collective investment schemes and fund managers
- RBA: registered retirement schemes
- CBK DhowCSD: Treasury bills and bonds
- Scam Watch: names named in regulator warnings.
Savings calculator
- You would have
- KES 436,760
- You paid in
- KES 250,000
- Growth from returns
- KES 186,760
- In today's money
- KES 268,133
Returns are not guaranteed and change every year. Use a return you can justify, for example a recent money market yield for savings, and a lower figure than past share returns for long-term goals. Fees and tax reduce what you keep.
Questions about investing in Kenya
What is the safest way to save in Kenya?
Treasury bills and bonds are loans to the government and carry very low risk of default. Money market funds are also low risk but are not guaranteed. Bank deposits are protected only up to the KDIC limit.
How much do I need to buy Treasury bonds in Kenya?
A non-competitive bid on DhowCSD starts at KES 50,000 per bond. Competitive bids start at KES 2 million.
Are money market fund returns guaranteed?
No. The yield moves with interest rates and the fund's investments. A fund regulated by the CMA must follow investment rules, but it can still lose value in rare cases.
This guide explains options; it is not personal financial advice. Sources: Serrari: Kenya savings, CIS and long-term wealth (Jul 2026) · FNJ Associates: withholding tax in Kenya (updated Oct 2026) · MMFs Kenya: how to buy Treasury bonds on DhowCSD (Jun 2026) · Retirement Benefits Authority: individual pension plans.
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