Nairobi, June 29 -- Rising interest rates on Treasury bills and other short-term debt instruments have helped lift returns offered by money market funds (MMFs), which invest primarily in commercial banks, fixed deposits and government securities.

An analysis by the Business Daily shows that the annualised returns on the funds popularly known by their acronym MMFs have climbed since March, coinciding with the lift in interest rates on the short-dated Treasury bills.

The rising MMF returns have halted a drag in returns on the funds that had been ensuing since the start of the year as both T-bill and fixed deposit rates fell on easing inflation before the US-Israel war on Iran created a new shock, forcing investors to push for higher retur...