Where Investors Made Money in the First Half of the Year

If you wanted to make money in the first half of the year, the safest wins came from money market funds and fixed income, where collective investment schemes swelled to over Sh851.7 billion in assets under management by the end of March. Here is exactly where Kenyan investors put their cash to work and what actually paid off.

Why did money market funds attract so much cash?

Money market funds were the clear crowd favourite. When the Central Bank of Kenya kept rates high to tame inflation, returns on these funds climbed to attractive double digit levels for months.

For ordinary savers, the appeal was simple. You could park as little as Sh100 through your phone, earn interest daily, and withdraw within a few working days. No lockups, no drama.

Assets in collective investment schemes reaching Sh851.7 billion by the end of March tells the story. Kenyans were fleeing low interest bank accounts and chasing better yields. If you want to compare options, our guide to the top money market funds in Kenya by returns breaks down who paid the most.

Did government bonds and T-bills reward investors?

Absolutely. Fixed income was the quiet winner of the half year.

Treasury bills and infrastructure bonds offered some of the best risk free returns in years. Infrastructure bonds were especially popular because the interest earned is tax free, which pushes your real return even higher.

Investors who locked in long dated bonds early enjoyed generous coupon rates. As yields later eased, the market value of those bonds also rose, giving early buyers a bonus on top of their interest. You can track upcoming auctions directly on the Central Bank of Kenya securities page.

How did the Nairobi Securities Exchange perform?

The stock market staged a comeback that surprised many people who had written it off.

After a rough patch, several blue chip counters bounced back. Banking stocks led the recovery on the back of strong profits and juicy dividends. Safaricom also drew renewed interest as investors reassessed its long term value.

Investors who bought quality shares when prices were beaten down enjoyed both capital gains and dividend income. The lesson was familiar. Patience and good timing beat panic selling.

What about the shilling and foreign currency plays?

Currency movements handed some investors a pleasant surprise, and burned others.

The Kenyan shilling strengthened significantly against the US dollar during the period. That was great news for importers and anyone holding shilling assets, but painful for those who had rushed to hold dollars expecting continued weakness.

The takeaway is that betting heavily on currency direction is risky. Most people who made steady money did so by staying in productive shilling assets rather than gambling on the exchange rate.

Did fintech and digital investing open new doors?

Yes, and this is where things get exciting for younger investors.

Investing through your phone became mainstream. Apps linked to M-Pesa let you buy into money market funds, bonds, and even fractional shares in minutes. This lowered the barrier for first time investors who once thought the markets were only for the wealthy.

The shift is part of a bigger story we explore in our piece on the future of digital payments in Kenya. Convenience pulled thousands of new savers into the formal investment world.

What should you do with this information now?

The first half of the year rewarded discipline over speculation. Money market funds and fixed income delivered dependable returns, the stock market rewarded the patient, and fintech made investing easier than ever.

If you are starting out, keep it simple. Build an emergency cushion in a money market fund, add government securities for stable income, and only then explore shares once you understand the risks.

Remember that past returns do not guarantee future results. Before committing serious money, speak to a licensed financial advisor and confirm that any fund or platform is regulated by the Capital Markets Authority. For more practical money guides, visit our homepage and keep learning before you invest.

The bottom line is that the smart money in Kenya this year went where the risk was managed and the returns were real. Do the same and you will likely be counting gains by year end too.