SUPPLEMENTARY REPORT OF INDEPENDENT AUDITORS


Board of Trustees
Kemper Funds


In  planning and performing our audit of the financial statements  of
each  of  the  Kemper Funds listed in Exhibit A attached hereto  (the
"Funds")  for  the  year ended as of the date  listed  in  Exhibit  A
attached hereto ("Report Date"), we considered their internal control
structure, including procedures for safeguarding securities, in order
to  determine  our auditing procedures for the purpose of  expressing
our  opinion  on  their financial statements and to comply  with  the
requirements of Form N-SAR, not to provide assurance on the  internal
control structure.

The  management  of  the Funds is responsible  for  establishing  and
maintaining  an  internal  control  structure.   In  fulfilling  this
responsibility, estimates and judgments by management are required to
assess  the  expected benefits and related costs of internal  control
structure  policies  and procedures.  Two of  the  objectives  of  an
internal control structure are to provide management with reasonable,
but  not absolute, assurance that assets are safeguarded against loss
from  unauthorized  use  or  disposition and  that  transactions  are
executed  in accordance with management's authorization and  recorded
properly  to permit preparation of financial statements in conformity
with generally accepted accounting principles.

Because  of  inherent limitations in any internal control  structure,
errors  or  irregularities  may occur and  not  be  detected.   Also,
projection  of any evaluation of the structure to future  periods  is
subject  to the risk that it may become inadequate because of changes
in  conditions or that the effectiveness of the design and  operation
may deteriorate.

Our  consideration  of  the  internal  control  structure  would  not
necessarily  disclose all matters in the internal  control  structure
that might be material weaknesses under standards established by  the
American  Institute  of  Certified  Public  Accountants.  A  material
weakness  is  a  condition in which the design or  operation  of  the
specific  internal control structure elements does not  reduce  to  a
relatively  low  level  the  risk that errors  or  irregularities  in
amounts   that  would  be  material  in  relation  to  the  financial
statements  being  audited may occur and not  be  detected  within  a
timely  period by employees in the normal course of performing  their
assigned  functions.  However,  we noted  no  matters  involving  the
internal  control  structure, including procedures  for  safeguarding
securities,  that  we consider to be material weaknesses  as  defined
above as of Report Date.

This  report  is  intended  solely for the  information  and  use  of
management and the Securities and Exchange Commission.


                                        ERNST & YOUNG LLP


Chicago, Illinois
November , 1996





Kemper Funds                                      Exhibit A

September 30, 1996



Tax-Exempt California Money Market Fund
Kemper Growth Fund
Kemper Small Capitalization Equity Fund
Kemper High Yield Fund
Kemper National Tax-Free Income Series:
   Kemper Municipal Bond Fund
   Kemper Intermediate Municipal Bond Fund
Kemper Portfolios:
   Kemper Cash Reserve Fund
   Kemper U.S. Mortgage Fund
   Kemper Short-Intermediate Government Fund