Supplement to currently effective Prospectus of each of the
listed funds

                   Kemper Adjustable Rate U.S. Government Fund
                          Kemper Aggressive Growth Fund
                            Kemper Asian Growth Fund
                              Kemper Blue Chip Fund
                     Kemper California Tax-Free Income Fund
                            Kemper Cash Reserves Fund
                             Kemper Contrarian Fund
                         Kemper Diversified Income Fund
                       Kemper Emerging Markets Growth Fund
                       Kemper Emerging Markets Income Fund
                               Kemper Europe Fund
                       Kemper Florida Tax-Free Income Fund
                          Kemper Global Blue Chip Fund
                            Kemper Global Income Fund
                               Kemper Growth Fund
                             Kemper High Yield Fund
                       Kemper High Yield Opportunity Fund
                          Kemper Horizon 10+ Portfolio
                          Kemper Horizon 20+ Portfolio
                           Kemper Horizon 5 Portfolio
                   Kemper Income and Capital Preservation Fund
                     Kemper Intermediate Municipal Bond Fund
                            Kemper International Fund
                   Kemper International Growth and Income Fund
                            Kemper Latin America Fund
                      Kemper Michigan Tax-Free Income Fund
                           Kemper Municipal Bond Fund
                     Kemper New Jersey Tax-Free Income Fund
                      Kemper New York Tax-Free Income Fund
                        Kemper Ohio Tax-Free Income Fund
                    Kemper Pennsylvania Tax-Free Income Fund
                         Kemper Quantitative Equity Fund
                        Kemper Retirement Fund-Series VII
                    Kemper Short-Intermediate Government Fund
                      Kemper Small Cap Relative Value Fund
                           Kemper Small Cap Value Fund
                     Kemper Small Capitalization Equity Fund
                             Kemper Technology Fund
                            Kemper Total Return Fund
                        Kemper Texas Tax-Free Income Fund
                     Kemper U.S. Government Securities Fund
                       Kemper U.S. Growth and Income Fund
                            Kemper U.S. Mortgage Fund
                          Kemper Value + Growth Fund
                      Kemper-Dreman Financial Services Fund
                      Kemper-Dreman High Return Equity Fund


On December  22,  1997,  Zurich  Insurance  Company  ("Zurich")  entered into an
agreement with B.A.T Industries p.l.c. ("B.A.T") pursuant to which the financial
services   businesses  of  B.A.T  will  be  combined  with  Zurich's  businesses
(including Zurich's 70% interest in Scudder Kemper  Investments,  Inc. ("Scudder
Kemper")) to form a new global insurance and financial services company known as
Zurich Financial Services.  After the transaction is completed, by way of a dual
holding company  structure,  current Zurich  shareholders will own approximately
57% of  the  new  organization,  with  the  balance  owned  by  B.A.T's  current
shareholders.


The  transaction  is  expected  to  close in the  third  quarter  of 1998.  Upon
consummation of the transaction,  each Fund's  investment  management  agreement
with Scudder  Kemper will be deemed to have been assigned and,  therefore,  will
terminate.  Each Board has approved new investment  management  agreements  with
Scudder  Kemper,  which are  substantially  identical to the current  investment
management agreements,  except for the dates of execution and termination.  Each
new investment  management agreement is to become effective upon the termination
of the current investment management agreement. Each Board will seek shareholder
approval  of  the  new  investment   management   agreements   through  a  proxy
solicitation that is currently scheduled to conclude in mid-December.

September 1, 1998
KMF-1X
501742