I live upcountry. I am 55 and a father of five children aged between 20 and 12 years old. I have been a farmer most of my life. For a long time, I was doing well financially because of my inheritance. My late father was wealthy, and I inherited over 10 acres of prime farming land, a rental building in our town with Sh250,000 rental income capacity, two tractors, and Sh4 million in liquid cash.
For a long time, I was popular in my home area, and people called me tajiri and kiongozi. My fortunes took a bad turn in 2022 when I decided to invest in politics. I funded a promising gubernatorial candidate in the hope that I could recoup my investment through tenders once he got elected. I ended up investing about Sh13 million into his campaign. Unfortunately, he was not elected, and all the money I put into his campaign went down the drain.
Since then, I have sold off over three-quarters of the land I inherited and the two tractors to shore up my finances and live up to my reputation. Most of my rental income is attached to a bank loan that I took to acquire a new Landcruiser V8.
I feel like I am getting poorer instead of richer. I feel guilty that while I had assets to inherit, my children don’t have much that they can inherit if I were to die. I also need to urgently secure their university education. I would prefer not to sell off my V8 because I don’t want to downgrade and look broke to people. Please advise me on how to turn this ship around before I hit my 60s
Gertrude Njeri is an accountant, personal finance and investment consultant and the founder of Financial Buddy Africa Ltd.
Your biggest financial problem today is not simply that you lost money in politics. It is that, after losing a significant portion of your wealth, you have continued making financial decisions that prioritise maintaining your previous lifestyle over rebuilding your assets.
I want you to think carefully about your Land Cruiser V8. You have explained that you would prefer not to sell it because you do not want people to see you as someone who has downgraded or become broke.
That is understandable, but I want you to consider what the vehicle is actually costing you.
You have a bank loan to service, and much of the income from your rental building is committed to repaying it. That means an asset that could be funding your children's education, supporting your household and rebuilding your investments is instead being used to finance a vehicle.
My recommendation is to obtain a realistic valuation of the vehicle and establish the outstanding loan balance, monthly repayments and total running costs. Then compare the financial implications of keeping it with those of selling it and purchasing a much more affordable vehicle, if you still need one.
If selling the V8 would substantially reduce your debt and free up rental income, I would seriously consider selling it.
The people who call you tajiri or kiongozi are not responsible for financing your retirement or educating your children. You are.
Start by listing every asset you still own, including any remaining land, your rental building, cash, farming equipment, vehicles and investments. Establish their realistic current market values.
Next, list every outstanding loan, including the amount owed, interest rate, monthly repayment, remaining term and any collateral attached to it.
This exercise may be uncomfortable, but it will tell you whether your wealth is still declining and how much room you have to rebuild.
You should also separate your assets into two categories: those that generate income and those that primarily support your lifestyle.
Your rental building and productive farmland can generate income. Your V8 is primarily a consumption asset, unless you use it directly to earn money.
This distinction matters because your immediate objective is to rebuild the income-producing side of your balance sheet.
At full occupancy, Sh250,000 per month translates to Sh3 million in annual gross rental income. However, that is not the same as the money available for spending or investing. You must account for vacancies, repairs, management expenses, taxes and the bank loan.
Start by establishing three figures: the building's actual monthly rental income, its monthly operating expenses and the amount remaining after debt repayments.
For example, if the building generates Sh250,000 in rent but the loan repayment is Sh180,000, the remaining Sh70,000 must still cover property expenses and any other applicable obligations. The gross rental figure alone could give you a misleading impression of how much money the property produces.
If the loan is consuming most of the rental income, review the outstanding balance, interest rate and remaining repayment period. Explore whether refinancing or restructuring could improve cash flow, but compare the total cost before accepting a new arrangement.
You have five children aged between 12 and 20, which means some of them may be approaching university while others still have several years before they need that money.
For a child entering university next year, you have very little time to build a large education fund from scratch. For a 12-year-old, you have more time to save and invest gradually.
Find out what financial support may be available through the relevant institution, government funding programmes, scholarships and bursaries. Confirm the eligibility criteria and application timelines rather than assuming that support will automatically be available.
For education expenses due within the next one to three years, prioritise capital preservation and accessibility. Depending on the timing and terms, this could include appropriately selected Treasury bills, deposits or regulated money market funds. These products have different risks and terms, so choose based on when you will need the money rather than chasing the highest advertised return.
Do not put money needed for imminent university fees into speculative investments or the stock market in the hope of making quick profits.
And please do not borrow heavily to fund university fees before assessing the full cost and available alternatives.
If you still have productive farmland, examine which crops or agricultural activities provide the best return after accounting for labour, inputs, transport, storage and market prices. Revenue alone is not enough; you need to know the actual profit.
If you no longer have enough land to farm at a commercially viable scale, consider whether leasing arrangements, contract farming or other agricultural partnerships could generate income without requiring you to purchase land immediately. Evaluate any arrangement carefully and put agreements in writing.
First, do not commit large amounts of capital to an opportunity you cannot independently evaluate.
Second, do not borrow money to maintain your reputation or finance consumption.
Third, do not invest money earmarked for your children's education or essential household expenses in speculative ventures.
Fourth, do not sell income-generating assets to finance a lifestyle unless you have carefully considered the long-term consequences.
Finally, review your finances every month. Track rental income, farming profits, household expenses, debt and the amount you save. You need to see whether your decisions are improving your financial position.
