Why unit trusts’ yields are declining

Analysts say investors in money market funds should expect lower returns this year compared to 2024.

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The lowering of returns on government debt securities is fast driving down the yields on unit trusts and Treasury bills to single digits.

The return on the 91-day Treasury bill fell below nine percent for the first time since October 2022 in the latest auction as the cost of government borrowing adjusted to the latest rate cut by the Central Bank of Kenya (CBK).

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Note: The results are not exact but very close to the actual.