Best Places to Invest Chama Money in Kenya 2026

Updated 2 November 2026

The best places to invest chama money in short: for money the group may need within a year, a CMA-approved money market fund is the most flexible option (Old Mutual’s fund was paying 10.29% a year on 30 October 2026); for money you can lock away, Treasury bills (9.03% on the 364-day bill on 2 November 2026) and tax-free infrastructure bonds pay more than bank deposits; Sacco deposits can pay 10% to 13% but are paid once a year; and land is a long-term bet with high entry costs. A bank savings account paid an average of only 3.53% in September 2026, so idle chama cash loses value there.

Updated 2 November 2026. Rates from CBK Treasury bill auction results (value date 2 November 2026), CBK’s published average deposit and savings rates (September 2026), Old Mutual fund prices (30 October 2026) and Sacco AGM announcements for 2025. Past returns do not guarantee future returns.

Best places to invest chama money: returns compared

The table shows what KSh 500,000 of chama money would earn in a year at the latest published rates. Withholding tax is deducted at source.

Rates move every week for T-bills and every day for MMFs; check the latest on our T-bill and MMF rates tracker. The 91-day figure assumes you reinvest at 8.75% each quarter, which is not guaranteed.

1. Money market funds: best for the group’s working cash

A money market fund pools money into short-term government securities, bank deposits and similar assets. Most allow top-ups from a few hundred shillings and pay out within a few working days, so a chama can keep its emergency, welfare or lending float there and still earn interest. Interest is taxed at 15% and compounds daily in most funds.

• Open the account in the chama’s registered name, with the signatories set out in your constitution.
• Use only funds approved by the Capital Markets Authority; see how to check if a money market fund is CMA-approved.
• Compare yields carefully: some managers quote a daily effective annual rate, others a 7-day or 3-month average.

2. Treasury bills: safe, fixed, short term

T-bills are short-term government debt sold by CBK every week in 91, 182 and 364-day tenors. At the auction with value date 2 November 2026 the weighted average rates were 8.7498% (91 days), 8.8508% (182 days) and 9.0288% (364 days). The minimum non-competitive bid is KSh 50,000 per tenor, and the chama needs a CSD account on CBK’s DhowCSD platform. See how to buy Treasury bills in Kenya.

3. Infrastructure bonds: highest tax-free return, long lock-in

Infrastructure bonds are long-term government bonds whose interest is exempt from withholding tax. At the August 2026 reopening, IFB1/2021/021 was accepted at an average rate of 13.052% with a 12.737% coupon and about 16 years left to maturity. Interest is paid twice a year, which suits chamas that share out annually, but selling before maturity means finding a buyer on the NSE at the market price. Model the payments with our infrastructure bond calculator.

4. Saccos: high returns, but money is tied up

Saccos pay interest on deposits and dividends on share capital once a year, after the AGM. For 2025, Stima DT Sacco paid 11% on deposits and 16% on shares, Kenya National Police DT Sacco 11% and 17%, and Mwalimu National DT Sacco 10.05% and 13%. Sacco payouts carry a 5% withholding tax. Before joining, check whether the Sacco admits groups, whether it is licensed by SASRA, and how long it takes to refund deposits if the chama exits. Compare payouts with the Stima Sacco dividend calculator.

5. Land and property: long-term growth, high costs

Many chamas buy land for growth or to subdivide. There is no published yield to compare, and the costs are front-loaded: stamp duty is 4% of the value inside a municipality and 2% outside, plus valuation, legal and survey fees. Do a land search and agree in writing who holds the title. See land transfer steps and costs in Kenya.

How to use the best places to invest chama money together

• Money needed within 3 months (welfare, member loans, share-out): money market fund.
• Money for a fixed date (school fees, a planned purchase): a T-bill that matures before that date.
• Money for long-term growth: infrastructure bonds, Sacco shares or land, agreed by a vote recorded in the minutes.

Whatever you choose, keep the account in the chama’s name, require two or more signatories, and share statements with all members. If you have not registered the group yet, start with how to register a chama, then pick a bank from our best bank for chamas guide.

Frequently asked questions

Where is the best place to invest chama money in Kenya?

For short-term money, a CMA-approved money market fund. For money you can lock away, Treasury bills, infrastructure bonds or Sacco deposits pay more than bank deposits.

Can a chama invest in Treasury bills?

Yes. A registered chama can open a CSD account on CBK’s DhowCSD platform and bid from KSh 50,000 per tenor.

Is chama money in a money market fund safe?

MMFs approved by the CMA invest in low-risk assets, but returns are not guaranteed and the fund is not a bank deposit. Spread large sums and check the fund’s approval.

Are infrastructure bonds really tax-free?

Yes. Interest on Kenyan infrastructure bonds is exempt from withholding tax, unlike T-bills and MMFs, which are taxed at 15%.

How much tax does a chama pay on Sacco dividends?

Sacco dividends and deposit interest carry a 5% withholding tax, deducted before payment.

Sources: CBK Treasury bill results (value date 2 November 2026) and key rates; Old Mutual Kenya fund prices (30 October 2026); Stima, Kenya National Police and Mwalimu National DT Sacco 2025 payout announcements. This guide is general information, not financial advice.