Investment opportunities in Kenya – 14 ways to invest KShs 10,000
How did you make your first 10,000? Can you still remember what you did with it? Was it from a salary or a wage paid for doing some odd job? It may even have been a gift.
I still remember my first Sh 10,000/=. I was a sales representative for a pharmaceutical company as well as well as tutoring some children in Nairobi’s Kilimani area.
With the Sh. 10,000/= I put Sh. 3,000/= into rent deposit and bought a small meko. With that I settled comfortably into a small room somewhere along Jogoo road.
Depending on your income and responsibilities, Sh 10,000 may seem like a lot of money. Or10k may be a lot, or too little, depending on your financial responsibilities, and how you perceive money and business opportunities.
Young people graduating from college have numerous opportunities to earn decent cash as self-employed individuals, or the massive online opportunities available. The market is ripe, I assure you. You just need to do some through research, reading, combing and chaffing out the numerous ways to start a business or invest with as little as Ks.10,000.
We have outlined some less saturated business ideas to get you started. click for more details
Table banking has been widely popularized in Kenya by the Joyful Women Organization led by Rachel Ruto. She encouraged women to join hands and contribute their money to a revolving kitty. Members would borrow money from the kitty and pay it back at 5-10% interest. As their businesses grow, members have a reliable source of working capital.
Bonds are simply ways in which the government or large corporations borrow from the public to fund projects, or run the government. The Kenyan treasury bonds offer quarterly, semi-annual, or annual T-bonds with repayment periods of between 1-30 years. Interest varies with the duration of the bonds and the amount issued.
Bonds are a great substitute to saving money in the bank because they fetch higher interest rates. The interest fluctuates with the economic trends. The government has introduced a new inexpensive bond called the MKiba bond, purchased through Mpesa. With as little as Ksh.3, 000 you earn a 10% annual interest
The best time to buy the cheap stock is during an IPO (initial public offering). Companies requiring additional capital or intending to release their money, declare IPO’s to allow the public to buy shares from their corporation. Company stocks are recognized as shares. Shareholders can purchase shares in any public company listed in the Nairobi Stocks Exchange (NSE). Most IPO’s announce minimum shares worth between Ks.5, 000-Ks.10000.
Below are the latest stock prices to consider:
From the list above, standard group (Ks.23), Athi River Mining (Ks.25), NIC Bank (Ks.26.75) and KPLC (Ks.6.45) present a favorable opportunity to buy long-term shares and watch them grow over time.
To invest in shares, you need to open a CDSC account from any Bank or a stock brokerage company. You can access your CDSC account anytime to monitor stock movements. Your bank/stock broker should be able to regularly advise you on what’s hot and what to drop. That is how you’ll make money. By staying informed
4.Invest in Mutual Funds
A Mutual Fund combines investments from several individuals and corporations to make joint investments. Parties to the financial contributions share in the fund’s profits and losses. The fund is managed by an accredited Fund Manager, who makes all investment choices on behalf of the investors. A single investor in a mutual fund is called unit holder. He holds units based on the amount invested in the unit fund trust. The mutual t funds hold different rates of return.
With Ks. 10,000, a local fund charges a 2% initial management fee. The balance of Ks.9, 800 is used to buy your preferred units in the fund. This amount is divided by the current day’s unit market price e.g. 70 units worth Ks. 142.05 per unit.
There is also money market fund that does not have the initial management fee, when you invest in money market, your capital is guaranteed.
5. Real Estate
While real estate is an excellent investment option, owning a property today is an uphill task. This, however, doesn’t mean that you cannot invest in real estate. A real estate investment trust (REIT) which works similar to a mutual fund is an excellent vehicle to own a commercial or residential property. What are the benefits of investing in a REIT over owning the property outright?
High Liquidity – REITs shares are traded on the major stock exchanges which make them easy to buy and sell. On the other hand, buying and selling property requires a lot of effort and expense.
Diversification – Buying REIT shares involves purchasing a portfolio of properties or mortgages and not a single property.
High income –REITs are required to pay out at least 90% of their revenues in the form of dividends to investors each year.
Tax advantages – Since REITs tend to be held for an extended period of time, investors enjoy higher capital gains.
– The investment is handled by highly skilled and experienced real estate managers. You can also start investing through other investments vehicles and then buy land. Click here
6.Coaching Programs for self-improvement:
The best long term investment is usually about yourself. When you choose to improve any facet of your life, then you are able to live a richer more fulfilling life. A coaching program is one investment avenue which you can embark on that can not only help you make money but also improve your life outlook. If you feel like you want to take your life in a different direction, a coaching program with a professional can assist you channel your focus in this area without you spending much time and effort on research. Once your learn, you can begin coaching other people and recoup back our investment within a short time. My coach is Gary Ryan Blair, you can try him out and you will never be the same again.
7.Going Back to School
Did you know that improving your job skills through knowledge is a significant investment? Many people go through a phase whereby they feel like their jobs have hit a dead end or that they are not cut out for that field or that they are not earning enough in their job. Going back to school may be the best investment of time and money. Getting an associate degree could be just what you need to kick-start your career. Additional Professional diplomas are a great investment too. If you are an accountant for instance, you can go back to school and enrol for management skills and Human resources to diversify your expertise. If an opportunity opens up at work, you can apply in any required specialty that you invested in.
8. Online Courses/ programmes
If going to classes is inconvenient for you, there are a myriad of programs that you can study online. Online courses offer career advancement in a more affordable and flexible manner. You also get to study in your pajamas in your living room if you so wish! The investment in online studies is that it also boosts your career level, earning you more money by rising through the ranks at your workplace. My coach Gary Ryan Blair can be very helpful.
9. Starting your own business
It takes courage to start your own business and is certainly one of the best ways to invest in yourself. By starting your business you get to utilize everything that you have within you – your education, work experience and unique capabilities. You get to be your own boss and be in control of your own career. Chances are that you will earn higher than when you are in employment. Entrepreneurship also teaches you how to manage resources and diversify when your business income grows.
Thanks to the internet, starting a business has become a simplified process. Think of a business that you can start that can meet a need in the market. Research how you can market your business over the internet, for instance with the use of search engines to draw buyers. Then create a realistic business plan and start out. This business can prove to be the financial nest egg that you can live on for a long time to come.
To start businesses with Sh. 10,000/= you need to look at what you are good at vis a vis the opportunities around you. For instance if you are fashion savvy you can buy things from mitumba and sell them to friends. These can be handbags, dresses or even bed sheets. If you are good at cooking you can cater events.
10. Starting a Blog
With all the blogging platforms available, starting a blog is free and easy. It only requires that you identify what you are passionate and knowledgeable about, and are capable of writing confidently about, and then building a blog around it. By creating excellent content, gaining a faithful following and promoting your site, you can be able to monetize the blog through affiliate marketing, advertising by brands or through selling your own products or services.
Blogs are great for personal branding. If you are a teacher for example, you can blog about education. This will be good for your personal branding and it can open up only opportunities for you in future.
You can choose to do it part-time as a side hustle or go pro and blog full time. If you keep at it, blogging can present such excellent opportunities such as attracting consulting and speaking gigs, freelance work, book deals and even job offers… all pouring into your money basket
11. Resell Products on Amazon FBA
Amazon has a fantastic program known as Fulfilment by Amazon (FBA) that allows you to make money quickly. How it works: You deliver the merchandise that you want to sell to an Amazon fulfillment centre and once the goods get sold in the usual way, Amazon deal with the packing, shipping and customer service for you, for free. You have to put in some cash to get Amazon licenses and permissions to market their goods and services. Be sure to pay your self first once you make money.
12. Pay off Debt
Debt is good and bad. It is good when you borrow to trade with the cash and return the money once your profit margins align. Debt becomes a burden when you don’t pay up on time. Interest accrues, leaving you with a heavy burden to clear the loan. But, if you take a long-term loan, pay on time and clear the loan, imagine how much money you can invest if you kept up with the payments, only this time, for your personal savings r investments. That’s how you turn debt into profits.
Clearing your debt leaves you with disposable income to invest in any of the above opportunities.
Farming has been a lucrative business for many centuries. We all have an experience growing up in the village farm arrears or visiting one. You can start a farm business with Ksh.10, 000 by selecting your favourite/passionate farm chore, this way you give it your undivided attention and care. Sh 10,000 is enough to grow a small plot of carrots, sukuma wiki, kunde, strawberries, or capsicum. Just be sure to budget for the seedlings/seeds and fertilizers all the way to harvest.
You can visit the nearest government agricultural office for unique farming options within your budget.
14. Peer to Peer Lending
Peer lending works great with a small circle of friends or acquaintances. With Ks.10, 000 you can lend small amounts to your trusted business associates in return for a small profit margin. Peer lending is prevalent in the US where cash strapped business communities rely on a few individuals to boost their capital to increase stock or assets. The Somali community here in Kenya also runs successful peer lending as an investment vehicle.
There is another way you can invest Ksh. 10,000. You can invest this money on UNIT TRUSTS. They have low risks and good returns. It’s so important that you know about UNIT TRUSTS. That’s why we wrote a whole blog post about it. You can find the blog post by clicking this link.
Bismart combines and studies multiple investment options to offer you only the best possible solutions for your investments. We comprehensively look at your finances before helping you select a sound investment plan for you and your loved ones.