Free Cash Flows and Business-Friendly Saving Tools

Free Cash Flow = Operating Cash Flow − Capital Expenditures. It represents the cash your business generates after sustaining operations and maintaining assets. It is the foundation of financial strength. Without FCF, your business is living on debt or equity — not its own engine.

Idle cash sitting in a current account loses ~5–8% of its purchasing power annually through inflation. Over 3 years, KES 1 million becomes worth KES 860,000 in real terms without any investment. Idle cash is not safe — it is quietly eroding.

MMFs offer: daily liquidity, competitive yields (typically 9–12% p.a. in Kenya), low minimum investment, and professional management. They are ideal for the operational surplus that needs to be accessible within 1–3 business days. Serrari's MMF comparison tool identifies the top performers.

Fixed Deposits: lock-in periods of 30–365 days, higher yields than MMFs, suitable for cash not needed in the short term. Treasury Bills: 91, 182, 364-day instruments, government-backed, competitive yields, tradeable in secondary market. Both suit planned capital that has a known future deployment date.

Tier 1 (0-30 days): MMF for operational reserves. Tier 2 (30-90 days): Fixed deposit for medium-term surplus. Tier 3 (90-365 days): T-bills for strategic reserves. This structure maximizes yield while maintaining appropriate liquidity at each horizon.