Every Kenyan investor has one major concern that refuses to go away: the shilling’s unpredictable dance against the dollar. From parents saving for children’s overseas education to exporters holding dollar inflows, the risk of holding all your wealth in KES is becoming harder to ignore. Inflationary pressures, rising import costs, and external shocks have made dollar-denominated investments more attractive than ever.
This is where USD Money Market Funds (MMFs) come into play. Unlike the traditional KES-based MMFs that dominate Kenya’s investment space, USD MMFs provide a unique hedge against currency depreciation while offering liquidity and steady returns in dollars.
Among the growing list of USD funds in the Kenyan market, the Dry Associates Money Market Fund USD has carved a niche as a reliable option for both individual and institutional investors. With assets under management (AUM) of KShs. 2.34 billion as of June 2025, this fund is small but significant, representing the strong appetite for safe dollar assets.
In this article, we’ll dive deep into what makes the Dry Associates USD MMF stand out, who it suits best, how it compares with other dollar funds, and why it could be a smart addition to your portfolio.
Understanding the Dry Associates Money Market Fund USD
The Dry Associates Dollar Money Market Fund is a Collective Investment Scheme (CIS) regulated by the Capital Markets Authority (CMA). It is designed to invest in short-term, high-quality, dollar-denominated securities such as:
- USD fixed deposits with reputable banks
- USD Treasury bills (where available)
- Commercial papers and corporate notes in USD
- Other secure short-term debt instruments
The fund’s objective is threefold:
- Capital Preservation – ensuring your principal remains safe.
- Liquidity – giving you access to your money when you need it.
- Competitive Dollar Returns – growing your wealth in USD terms, not just in shillings.
Unlike speculative investments, the Dry Associates USD MMF prioritizes stability. It won’t double your money overnight, but it shields you from the double hit of shilling depreciation and low-interest bank accounts.
Fund Performance and Market Position
According to the CIS Q2 2025 report, Dry Associates USD MMF had an AUM of Kshs. 2.34 billion. This positions it among the mid-tier USD-denominated MMFs in Kenya.
To put this into context:
- CIC Dollar MMF leads the market with AUM of Kshs. 4.29 billion.
- Jubilee Dollar MMF follows closely at Kshs. 2.61 billion.
- Absa Dollar MMF stands at Kshs. 2.30 billion.
- Old Mutual Dollar MMF holds Kshs. 1.44 billion.
- Dry Associates USD MMF comes in at Kshs. 2.34 billion, making it a notable player in this niche space.
This growth is impressive when you consider that just two years ago, Dry Associates USD MMF was below the Kshs. 2 billion mark. The fund’s ability to attract inflows reflects investor confidence in the brand and its disciplined fund management.
On a broader scale, foreign currency-denominated funds (mostly USD) now account for 10% of Kenya’s total CIS market with AUM of KShs. 62.1 billion as of June 2025. The rising appetite is clear.
Why Consider a USD Money Market Fund?
Investing in a USD Money Market Fund (MMF) is not just about chasing returns; it’s about protecting your financial future. Let’s break down why this matters in today’s Kenyan economy:
1. Hedge Against Shilling Depreciation
The Kenya shilling has steadily lost ground against the US dollar over the last decade. From trading at Kshs. 100 to the dollar a few years ago to well past the 150 mark, depreciation erodes the value of local savings. Imagine saving Kshs.
1 million in a local MMF earning 12% annually, only for the shilling to drop by 15% against the dollar in the same year. That gain is wiped out when measured in global purchasing power. A USD MMF solves this problem by keeping your savings in the stronger currency.
2. Dollar Income for Diaspora and Exporters
If you’re in the diaspora sending money home, converting USD to KES immediately exposes you to exchange rate risks. Similarly, exporters and NGOs receiving donor funding in USD often struggle with conversion timing. Parking these funds in a USD MMF buys you time and earns you returns while you wait to use the money.
3. Diversification for Local Investors
Smart investors know not to keep all their eggs in one basket. A USD MMF gives you exposure to a global reserve currency. Even if your core portfolio is in KES, having a slice in USD balances the risk.
4. Stability During Economic Volatility
When the economy gets rough, businesses fail, inflation rises, and interest rates fluctuate, the US dollar tends to hold steady. A USD MMF gives you peace of mind — your money is parked in a globally trusted currency.
Key Features of the Dry Associates USD MMF
The Dry Associates USD Money Market Fund is designed for simplicity, stability, and accessibility. Let’s unpack its features:
- Minimum Investment – Unlike offshore funds that require tens of thousands of dollars, Dry Associates USD MMF allows retail investors to start small while still accommodating high-net-worth portfolios.
- Liquidity – Need your dollars quickly? Withdrawals are typically processed within 3–5 working days, making it almost as accessible as a savings account.
- Indicative Yields – While rates fluctuate, investors can expect annual returns in the range of 3–5% in USD. This is significantly higher than a standard dollar account at most Kenyan banks, which earns close to 0%.
- Capital Safety – The fund invests in top-tier instruments like Treasury bills and bank deposits, regulated by the CMA and monitored by an independent trustee. Your money is not gambled away in risky assets.
- Digital Access – From online account opening to emailed statements and fact sheets, investors can manage their money without tedious paperwork.
These features make the fund a practical, everyday tool for anyone managing dollar cash flows.
Who Should Invest?
Not all investors need a USD MMF. But for some, it’s an essential piece of the puzzle:
- Diaspora Families – If you send money home in dollars, why not keep it in USD until you decide how to use it? A USD MMF ensures it grows in the meantime.
- Export Businesses – Exporters who get paid in dollars can park their revenue while preparing for imports, tax obligations, or expansion.
- Parents Planning Overseas Education – Tuition fees in the UK, US, or Canada are quoted in USD or GBP. Saving in shillings exposes you to nasty surprises. Parking money in USD MMFs is the disciplined way to prepare.
- High-Net-Worth Individuals – For wealthy investors, diversifying into USD isn’t optional, it’s mandatory. Holding part of your emergency fund or investment buffer in USD ensures long-term stability.
- NGOs & Institutions – Many NGOs run donor-funded projects in dollars. Parking donor funds in a USD MMF provides both liquidity and income.
Think of this fund as your “USD savings account that pays.”
Risks and Considerations
Even the safest investments carry some risks. Here’s what you need to weigh before investing:
- Currency Risk – If you earn and spend in shillings, holding too much in USD may hurt if the shilling suddenly strengthens.
- Inflation Mismatch – Your USD returns might not keep up with Kenyan inflation. For example, if the fund yields 4% in USD but local inflation runs at 8%, your real purchasing power in KES terms still declines.
- Interest Rate Sensitivity – USD MMFs track global short-term rates. When the US Federal Reserve cuts interest rates, USD yields fall too.
- Opportunity Cost – A USD MMF won’t deliver double-digit returns like equities or special funds. It’s about stability, not aggressive growth.
The key is to balance USD MMFs with other investments in your portfolio.
Comparing Dry Associates USD MMF with Other Dollar Funds
The USD MMF space in Kenya is competitive. Here’s how Dry Associates compares:
| Fund | AUM (June 2025) | Market Share | Liquidity | Typical Yield | Best For |
| CIC USD MMF | Kshs. 4.29B | Largest | High | 3–5% | Market leader, broad access |
| Jubilee USD MMF | Kshs. 2.61B | Fast-growing | High | 3–5% | Institutions, corporates |
| Dry Associates USD MMF | Kshs. 2.34B | Mid-tier | High | 3–5% | Personalized, boutique service |
| Absa USD MMF | Kshs. 2.30B | Similar size | High | 3–5% | Bank-backed reliability |
| Old Mutual USD MMF | Kshs. 1.44B | Smaller | High | 3–5% | Retail-friendly |
Dry Associates stands out as a boutique, client-driven option, with a strong emphasis on personalized service compared to bank-dominated funds.
Practical Uses of the Dry Associates USD MMF
So, how does this fund fit into your real life? Here are practical applications:
- Parking Dollars Before Investment
Many investors wait to buy property, stocks, or special funds. While waiting, parking in USD MMF ensures your money earns instead of sitting idle.
- USD Emergency Fund
If you or your children might need to travel abroad suddenly (health, studies, business), having a USD emergency fund is a lifesaver.
- Education Planning
Overseas tuition is one of the biggest drains on family wealth. Saving in shillings exposes you to exchange rate shocks. By saving directly in USD, you lock in certainty.
- Wealth Preservation
For retirees or high-net-worth individuals, part of your wealth should be ring-fenced in USD. It acts as insurance against shilling collapse.
- Complementary Strategy
Many smart investors run a dual MMF strategy: part in KES MMFs for liquidity, part in USD MMFs for protection. This balance creates both growth and stability.
How to Invest in the Dry Associates USD MMF
Here’s a simple roadmap:
- Open an Account – Visit Dry Associates or apply online.
- Provide Documentation – ID/passport, KRA PIN, proof of residence.
- Fund Your Account – Deposit dollars via bank transfer.
- Start Earning – Returns begin accruing almost immediately.
- Monitor Performance – Get fact sheets and monthly statements.
- Redeem Anytime – Withdraw funds within 3–5 working days.
FAQs
What is the minimum investment in the Dry Associates USD MMF?
The fund has a relatively low entry threshold compared to offshore funds, making it friendly to both retail and institutional investors.
How safe is my money in this fund?
It is regulated by the Capital Markets Authority, with trustees safeguarding investors. Funds are placed in high-quality, short-term USD instruments.
How do withdrawals work and how long do they take?
Redemptions are typically processed within 3–5 business days, ensuring strong liquidity.
What are the expected returns?
Indicative annual returns range between 3–5% in USD, depending on prevailing US interest rates.
Can Kenyans in the diaspora invest directly?
Yes. Diaspora investors can open and fund accounts in USD and enjoy the same benefits as local investors.
How does this compare with holding USD in a bank account?
Unlike bank accounts that earn almost nothing, USD MMFs generate interest while still providing liquidity.
Are there tax implications?
Yes, returns are subject to withholding tax under Kenyan law. Always confirm the applicable rates with your advisor.
Protect Your Wealth, Grow in Dollars
In a world where the shilling continues to weaken, the Dry Associates Money Market Fund USD gives you a solid shield. It’s not about chasing flashy gains — it’s about preserving your capital, earning steady USD returns, and keeping your money liquid when you need it most.
Whether you’re a parent saving for overseas education, a business with dollar inflows, or a diaspora investor seeking stability, this fund positions you to stay ahead of uncertainty and inflation.
Don’t wait for the next currency shock to remind you of the importance of diversification. Take the step today — open your account with Dry Associates USD MMF and start protecting your wealth in the world’s strongest currency.
