Best investment opportunities for low income earners

If you are a low-income earner in Kenya, it can be tough to save money. But don’t despair, there are still plenty of investment opportunities available to you. In this blog post, we will share with you the top ten investment opportunities for low-income earners in Kenya.

First things first what is investing? In simple terms, investing is putting your money into something now with the hope that it will appreciate in value and you can sell it at a later date for more than what you paid or generate a residual income for you in future.

To be successful in investing you need to diversify by creating an investment portfolio that gives you exposure to different asset classes including stocks, bonds, real estate and cash.

Diversification is important because it helps to spread the risk of investing in any one particular asset class. For example, if you invest all your money in shares and the stock market crashes, you could lose everything.

The art of investing is unique to each and every individual and no size fits all. Some of the factors you need to take into account when investing are;

Risk appetite

How much can you afford to lose for a potential return? Are you the type of person who when they lose Ksh 100, your world falls apart, if so, you should consider investing in a secure investment such as a bond.

Your risk profile is influenced by factors such as age, your monthly income, expenses and liabilities such as loans. If you are young and have fewer commitments you can risk more for higher returns.

Investment goals

When it comes to investing, there are two main goals: generating income and growing capital. Each goal requires a different approach, and what you ultimately decide will depend on your personal circumstances.

For example, if you want to buy a house in the next five years, you may need to invest more aggressively in order to reach your target. On the other hand, if you’re looking to generate income in retirement, you’ll need to focus on investments that provide a consistent stream of payments.

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No matter what your goals are, it’s important to have a clear understanding of what you’re trying to achieve before putting any money into an investment. By doing so, you’ll increase your chances of achieving lasting success.

Investment time frame

Are you looking for immediate returns or are you willing to wait for longer-term gains? Some investments take time to mature and may not be suited if you need the money in the short term. For example, investing in a start-up company may take years before it lists on the NSE and becomes profitable.


This is how easy it is to convert an asset to cash. Some assets such as shares can be sold quickly, while others such as real estate may take longer.

You also need to consider the fees associated with each investment. Different investments have different charges, for example, you may need to pay a broker to buy shares or pay annual management fees on a mutual fund. Weigh up all these factors before deciding where to invest your money.

Now that we have looked at what investing is, let’s look at the best investment opportunities for low-income earners in Kenya.

Best Investment Opportunities for Low-Income Earners in Kenya


These are types of investments where Kenyans lend money to the government or companies for a specified period of time in return for regular interest payments.

Investing in treasury bonds is less risky than investing in stocks because they offer better protection against economic downturns as the government will be able to pay back their bondholders even if other investments fail.

Mutual funds

This is a type of investment where your money is pooled together with other investors and then invested in a variety of assets such as shares, bonds and real estate.

The benefits of investing in mutual funds include professional management, diversity and liquidity. You can buy mutual funds directly by purchasing them through a broker such as Old Mutual.

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The average rate of return for mutual funds in Kenya is between 9% to 10%.


Many people are not aware of the benefits of joining a Sacco. A Sacco is a credit union where members pool their resources in order to provide financial assistance to one another.

In addition to providing loans, Saccos also offer other benefits, such as dividends on shares and interests on deposits or savings. This can be a great way to earn some extra money and grow your savings.

Furthermore, as a member of Sacco, you will have access to a wide range of financial services, including insurance, investment opportunities, and more. So if you are looking for a way to save money and access financial services, joining a Sacco may be the right choice for you.


This is where you buy shares of a company and become a part owner.

Investors trade in stocks with the hope they will appreciate in value and get a return. The downside to this is they can also depreciate in value .

To trade in stocks you have to open a CDS account with any of the registered stock brokers.

We recommend you enlist the help of an investment trader as they have the expertise and the knowledge to know when is the right time to buy and sell stocks.

Treasury bills

Treasury bills offer investors a safe and lucrative way to invest in Kenyan financial markets.

T-bills are short-term debt securities that are issued by the government and backed by the full faith and credit of the Kenyan government. They have maturities of one year or less, and they offer a fixed rate of interest.

The average interest rate on T-bills is between 7% and 10%, although the exact rate depends on market conditions at the time of the auction. T-bills are sold through auctions, so if there is more demand than supply, the interest rate will be higher.

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T-bills are an attractive investment for both individuals and institutional investors because they offer a high degree of safety and a relatively low level of risk.

Tips on how to start investing

Below are tips on how to start investing with little money

  1. Start small and gradually increase your investment as your income increases.
  2. Set aside some money each month to invest.
  3. Save first then invest. You should have an emergency fund to cover at least six months of living expenses before you start investing so that you don’t have to cash out your investments during tough times.
  4. Set realistic goals and invest for the long term.
  5. Diversify your investments to minimize risk. Don’t put all your eggs in one basket.
  6. Research investment options before you invest. Investing is a great way to grow your money, but it’s important to do your research and understand the risks involved. Do not make decisions based on emotions.
  7. Automate your investments so that you don’t have to think about them every month. This will help you to stay disciplined and invested for the long term.
  8. Be patient and disciplined with your investments. Rome was not built in a day. It takes time to see results from your investments, so don’t get discouraged if you don’t see immediate returns.
  9. Work with a financial advisor to guide you through the process.
  10. Choose investments that offer regular payouts so that you can reinvest the money or use it to cover expenses.
  11. Take advantage of compound interest by investing early and reinvesting your earnings.


These are just a few of the best investment opportunities for low-income earners in Kenya.

Investing is a great way to grow your money, but it’s important to do your research and understand the risks involved before you jump in.

Talk to a financial advisor if you’re not sure where to start. And remember, always invest within your means

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