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

The  management  of  the Funds is responsible  for  establishing  and
maintaining   internal  control.  In fulfilling this  responsibility,
estimates  and  judgments by management are required  to  assess  the
expected benefits and related costs of controls.  Generally, controls
that  are  relevant to an audit pertain to the entity's objective  of
preparing financial statements for external purposes that are  fairly
presented   in   conformity   with  generally   accepted   accounting
principles.   Those  controls  include  the  safeguarding  of  assets
against unauthorized acquisition, use or disposition.

Because  of  inherent  limitations in  internal  control,  errors  or
irregularities  may occur and not be detected.  Also,  projection  of
any  evaluation of internal control 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  would  not  necessarily
disclose  all matters in the internal control 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 one or more of the internal control
components  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 and its operation, including  controls
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 18, 1997


Kemper Funds                                      Exhibit A

September 30, 1997



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