SACCO vs money market fund vs Treasury bills

Updated 26 September 2026

SACCOs, money market funds and Treasury bills all pay you for saving, but they differ on how quickly you can get your money, what you can borrow, and who stands behind them.

If you have some money to put aside, three of the most common options in Kenya are a SACCO, a money market fund and a Treasury bill. They are often compared on returns alone. The bigger differences are how fast you can get your money back, whether the product helps you borrow, and who is responsible for it.

At a glance

	SACCO (deposits and shares)	Money market fund	Treasury bill
Who is behind it	A member-owned co-operative; many are regulated by SASRA	A fund run by a professional fund manager; collective investment schemes are regulated by the Capital Markets Authority	The Government of Kenya, sold through the Central Bank of Kenya
How you earn	Interest on deposits and dividends on shares, usually paid once a year after the AGM	A daily-calculated yield on your units	You buy at a discount and receive the full face value at maturity
Getting your money	Non-withdrawable deposits come back only when you leave (SACCOs may take up to 60 days); shares are never refunded, only transferred	Units can be redeemed; the timing is in the fund's terms	At maturity: 91, 182 or 364 days. Selling back early to CBK is possible but penalised
Minimum	Set by each SACCO (share capital and monthly deposit)	Set by each fund	KSh 50,000 for non-competitive bids, in multiples of KSh 50,000
Helps you borrow?	Yes. This is the main point of a SACCO	Not directly	Can be pledged as collateral with lenders that accept it

SACCOs

A SACCO pays you in two ways: interest on deposits and dividends on share capital, both decided each year out of the SACCO's surplus. SASRA's 2024 Supervision Report says regulated SACCOs paid an average of 7.14% on members' deposits and 10.46% on share capital for 2024, both lower than 2023. The report also notes these were above the average interest commercial banks paid on savings that year. Averages hide a wide range between SACCOs, and neither rate is promised in advance.

What you give up is access. Non-withdrawable deposits are refunded only when you leave the SACCO, after your loans and guarantees are cleared, and the regulations allow up to sixty days after your written notice. Share capital is not refunded at all; you must sell it to another member. The trade-off is borrowing power: many SACCOs lend a multiple of your deposits. Kencream Sacco, for example, describes standard loans of up to three times savings.

Money market funds

A money market fund is a type of collective investment scheme. The Capital Markets Authority describes these schemes as "pools of funds that are managed on behalf of investors by a professional fund manager", where each investor holds units representing a share of the pool, and says the yield for money market funds is calculated daily. CMA also notes that a fund's performance depends on the market value of what it invests in, "therefore it fluctuates." A money market fund is not a bank deposit and its yield is not fixed.

Money market funds are usually easier to get out of than SACCO deposits. Check the fund's own documents for how long withdrawals take, any fees, and the minimum investment.

Treasury bills

Treasury bills are short-term government debt sold by the Central Bank of Kenya in 91-day, 182-day and 364-day terms. According to CBK:

The minimum is KSh 50,000 for non-competitive bids, in multiples of KSh 50,000; competitive bids start at KSh 2,000,000.
They are sold at a discount: you pay less than the face value and receive the full face value at maturity. The discount is your return.
All three tenors are auctioned weekly.
You can buy directly through a CBK DhowCSD account (web or mobile app), or through commercial and investment banks.

CBK's FAQ explains that Treasury bills are not traded on the Nairobi Securities Exchange. If you need your money before maturity, you can sell the bill back to CBK as a last resort, but CBK describes this as "punitive to the investor" because it uses the average rate plus a 3% margin. Returns are also subject to withholding tax unless you are exempt. So a T-bill works best for money you are sure you will not need until it matures.

Which fits your situation?

You want to borrow in future (school fees, a plot, a matatu): a SACCO is built for that. Your deposits grow your loan limit.
You want an emergency fund you can reach quickly: a money market fund is usually more accessible than SACCO deposits or a T-bill.
You have a lump sum you will not touch for three months to a year: a Treasury bill locks in a known return from the government for that period.

Many people use more than one. A common pattern is steady SACCO deposits for borrowing, plus a separate pot somewhere more liquid for emergencies.

Current rates

Rates on all three change. For Treasury bills, check the latest auction results on the Central Bank of Kenya website. For a money market fund, check the fund manager's published yield. For a SACCO, look at the last few years of declared dividends and deposit interest. SaccoLink does not give investment advice or promise returns.

If you already hold SACCO shares and want to move money elsewhere, remember shares are only released by selling them to another member. You can list them on SaccoLink for free.

Sources

This guide is general information, not financial advice. SACCO rules differ, so confirm details with your SACCO.