Back to Learn
Sacco vs Money Market Fund — Which Is Better?
The Big Picture
Both Saccos and MMFs are popular savings vehicles in Kenya, but they serve different purposes. Here's a head-to-head comparison.
Quick Comparison
| Feature | Money Market Fund | Sacco |
|---|---|---|
| Annual returns | 10-16% (daily yield) | 10-15% (annual dividend) |
| Liquidity | T+1 to T+3 (days) | Limited (monthly/annual) |
| Minimum entry | KES 1,000 - 10,000 | KES 20,000 - 100,000+ |
| Loan access | No | Yes (3x deposits typical) |
| Regulation | CMA licensed | SASRA regulated |
| Risk level | Very low | Low to moderate |
| Tax | 15% WHT on interest | 5% WHT on dividends |
| M-Pesa deposit | Yes (most funds) | Some Saccos |
When to Choose an MMF
- You want quick access to your money (1-3 business days)
- You're starting with a small amount (KES 1,000+)
- You want daily compounding returns
- You don't need loan access
- You want a low-risk parking spot for emergency funds
When to Choose a Sacco
- You need loan access (typically 3x your deposits)
- You can commit to monthly contributions
- You're okay with less liquidity (harder to withdraw)
- You want higher potential returns (some Saccos pay 14-15%)
- You value the community aspect and member benefits
The Smart Strategy: Use Both
Many savvy Kenyan investors use both:
- MMF for emergency fund and short-term savings (3-6 months expenses)
- Sacco for long-term wealth building and loan access
This gives you the best of both worlds — liquidity when you need it, and higher returns + loan access for the long term.
Check Our Tools
- Compare MMFs — find the highest-yielding fund
- Compare Saccos — see stability scores and dividends
- Calculator — see your actual returns after tax