Kemper Intermediate Municipal Bond Fund
                           Kemper Municipal Bond Fund
                     Kemper California Tax-Free Income Fund
                       Kemper Florida Tax-Free Income Fund
                      Kemper New York Tax-Free Income Fund
                        Kemper Ohio Tax-Free Income Fund
                Supplement to Statement of Additional Information
                              Dated January 1, 2000

                             Kemper High Yield Fund
                       Kemper High Yield Opportunity Fund
                   Kemper Income and Capital Preservation Fund
                            Kemper High Yield Fund II
                            Kemper U.S. Mortgage Fund
                     Kemper Short-Term U.S. Government Fund
                          Kemper Strategic Income Fund
                     Kemper U.S. Government Securities Fund
                Supplement to Statement of Additional Information
                              Dated January 1, 2000


The above-listed Funds' non-fundamental investment restrictions have been
amended by a vote of the Board of Trustees for each Fund. The following amended
and restated non-fundamental policies restate in their entirety the
non-fundamental restrictions for each Fund in the section entitled "Investment
Restrictions" in each of the currently effective Statements of Additional
Information. In addition, any reference to these policies elsewhere in the
Statements of Additional Information is hereby amended.

As a matter of non-fundamental policy, each Fund will not:

o    For Kemper Intermediate Municipal Bond Fund, Kemper Municipal Bond Fund,
     Kemper California Tax-Free Income Fund, Kemper Florida Tax-Free Income
     Fund, Kemper New York Tax-Free Income Fund, Kemper Ohio Tax-Free Income
     Fund and Kemper U.S. Government Securities Fund:

          lend portfolio securities in an amount greater than 5% of its total
          assets.

o    For Kemper High Yield Fund, Kemper High Yield Opportunity Fund, Kemper
     Income and Capital Preservation Fund, Kemper High Yield Fund II, Kemper
     U.S. Mortgage Fund, Kemper Short-Term U.S. Government Fund and Kemper
     Strategic Income Fund:

          lend portfolio securities in an amount greater than one third of its
          total assets.

o    For Kemper High Yield Fund, Kemper High Yield Opportunity Fund, Kemper
     Income and Capital Preservation Fund, Kemper High Yield Fund II, Kemper
     U.S. Mortgage Fund, Kemper Short-Term U.S. Government Fund, Kemper
     Strategic Income Fund and Kemper U.S. Government Securities Fund:

          borrow money in an amount greater than 5% of its total assets, except
          (i) for temporary or emergency purposes; and (ii) by engaging in
          reverse repurchase agreements, dollar rolls, or other investments or
          transactions described in the Fund's registration statement which may
          be deemed to be borrowings.



o    For Kemper Intermediate Municipal Bond Fund, Kemper Municipal Bond Fund,
     Kemper California Tax-Free Income Fund, Kemper Florida Tax-Free Income
     Fund, Kemper New York Tax-Free Income Fund, and Kemper Ohio Tax-Free Income
     Fund:

          borrow money in an amount greater than 5% of its total assets, except
          for temporary or emergency purposes.

o    Purchase securities on margin or make short sales, except (i) short sales
     against the box, (ii) in connection with arbitrage transactions, (iii) for
     margin deposits in connection with futures contracts, options or other
     permitted investments, (iv) that transactions in futures contracts and
     options shall not be deemed to constitute selling securities short, and (v)
     that the Fund may obtain such short-term credits as may be necessary for
     the clearance of securities transactions;

o    Purchase options, unless the aggregate premiums paid on all such options
     held by the Fund at any time do not exceed 20% of its total assets; or sell
     put options, if as a result, the aggregate value of the obligations
     underlying such put options would exceed 50% of its total assets;

o    Enter into futures contracts or purchase options thereon unless immediately
     after the purchase, the value of the aggregate initial margin with respect
     to such futures contracts entered into on behalf of the Fund and the
     premiums paid for such options on futures contracts does not exceed 5% of
     the fair market value of the Fund's total assets; provided that in the case
     of an option that is in-the-money at the time of purchase, the in-the-money
     amount may be excluded in computing the 5% limit; and

o    Purchase warrants if as a result, such securities, taken at the lower of
     cost or market value, would represent more than 5% of the value of the
     Fund's total assets (for this purpose, warrants acquired in units or
     attached to securities will be deemed to have no value).

o    Invest more than 15% of net assets in illiquid securities.



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