Money Market Funds : Ksh MMF vs USD MMF Money market funds are gaining popularity in the country as an investment vehicle. While most local investors have concentrated on Shilling MMFs, the US dollar (USD) MMF, is emerging as a compelling alternative. The main difference between Shilling MMFs and USD MMFs is their investment strategies. Unlike Ksh MMFs, USD MMFs invest in dollar-denominated securities. This could be fixed deposits, commercial papers, corporate bonds, Eurobonds etc. Shilling MMFs typically offer higher interest rates ( 5-13% )compared to the 4-6% offered by USD MMFs. Despite the low returns, investing in USD money market funds offers several benefits : If you earn in dollars, USD MMFs allow you to maintain these earnings without having to convert them into the local currency If your investments are heavily exposed to Kenyan shilling assets, investing in Dollar backed assets helps spread risk across different currencies (diversification)