There has been endless debate in offices, WhatsApp groups, and Twitter spaces about whether Money Market Funds (MMFs) are investments. Let’s be clear: the best way to cut through the noise is to separate saving from investing. Too many Kenyans confuse the two, and that’s why they mismanage their money. If you put KSh 100,000 into a product, do you want safety and accessibility, or do you want growth with risk? That is the real question.

Saving is about safety. You put aside money in a low-risk environment where your capital is protected. Think of it as a financial parking lot — your KSh 50,000 will still be KSh 50,000 next month, next year, and five years from now, with a little “thank you” interest on top. Because the risk is low, the returns are also low, often 3–8% annually. That is the price of peace of mind and liquidity — having your cash when you need it.

Investing, on the other hand, is a completely different animal. It’s long-term, it’s risky, and it can reward you handsomely or punish you harshly. If you put KSh 200,000 into stocks, property, or a business, you may double it in five years, or you may lose half in a single bad year. Investments bring capital growth through dividends, rents, or capital gains, but they also carry the risk of capital losses. With investing, your KSh 200,000 today might be KSh 350,000 tomorrow, or KSh 120,000 if things go south.

This is why definitions matter. Savings are short-term, safe, and liquid. Investment is long-term, risky, and volatile. When you hear people throwing around the words interchangeably, remember that they are mixing apples and oranges. A 7% MMF yield and a 20% stock market return are not the same species. They serve different purposes in your financial life. Liquidity, duration, and risk are the true dividing lines.

So where do MMFs stand? Strictly speaking, MMFs fall under the savings category. Why? Because most MMFs place your money in government securities, treasury bills, and bank deposits — the safest assets available. In Kenya, MMFs currently yield between 8% and 13% per year, depending on the fund. Compare that with the 3–5% interest you get from a normal savings account, and MMFs look more attractive. But let’s not lie to ourselves: this is still saving, not investing.

Now, there are exceptions. Special funds that venture into corporate bonds, equities, or commercial paper introduce real risk. In those cases, capital is no longer guaranteed. Your KSh 100,000 can shrink. At that point, you are no longer saving, you are investing. But the ordinary MMF that your bank or insurance company sells you? That is a savings product dressed up in investment clothes. It’s stable, predictable, and safe, but don’t expect miracles.

People love to complain that MMFs are “too low.” But what did you expect? If you earn 9% per year, that’s KSh 9,000 on every KSh 100,000 you’ve put in. Compare that with inflation, currently hovering around 6–7%. That means your money is keeping pace with rising prices. If you wanted 30% returns, then you must accept the risk of losing it all. That’s how the financial world works — no free lunch, no shortcuts.

The real beauty of MMFs lies in liquidity. Imagine you’ve parked KSh 200,000 in an MMF, and an emergency strikes tomorrow. Most funds let you withdraw in 2–4 days. Some, like Ziidi MMF linked to M-PESA, let you access your money instantly. That convenience is priceless. Yes, maybe you’re getting “just” 8% instead of 12% elsewhere, but the ability to pull out your cash when needed is worth far more than chasing a few extra shillings in return.

If you want true growth, then stop crying about MMFs and start exploring actual investments: equities, land, real estate, agribusiness, or even your own company. The Nairobi Securities Exchange has had stocks like Safaricom and Equity Bank deliver over 15% annualized returns over the last decade. But along the way, prices crash, sometimes by 30–40% in a year. Can you stomach that? If not, then stay in the comfort of your MMF and accept your 9%.

This is not about competition between products. It is about alignment with your financial goals. Use MMFs as your short-term money home — your emergency fund, your parking spot for school fees, your bridge while you wait for a deal to close. Use investments for wealth-building over 5, 10, or 20 years. The problem is when people expect one product to serve all purposes. That is financial laziness disguised as ambition.

So here is the hard truth: MMFs are savings products. Stop calling them investments. Stop demanding stock market-level returns from treasury-bill-level risk. If you want to grow wealthy, you need both: the calm reliability of MMFs for short-term money and the wild volatility of investments for long-term growth. The secret is knowing which bucket your money belongs in. Only then will you stop being frustrated and start being financially wise.