I am married with two children, aged 9 and 6. We live up-country. My husband works as a deputy principal at a secondary school, while I work for an NGO. He manages our bills, and we have subsidised rent because we live within the school compound. I have been employed for two years and earn a net salary of around Sh30,000 per month.
Last month, we received a notice from my employer that our organisation has been hit hard by donor funding cuts and will be declaring redundancies. However, I have been given the option to take a 50 per cent pay cut or leave my position. I have managed to save a total of Sh250,000. Most of my money goes to chama, tithe, and my children. I was planning to save up to Sh1 million over the next two years to buy my own car and set up a clothing business. Losing Sh15,000 feels like too much for me, and I am now considering quitting altogether and taking time off from work to be a housewife and have my third baby. What home-based businesses can I start with Sh250,000 that will keep me busy at home?
Gertrude Njeri is an accountant, personal finance and investment consultant and the founder of Financial Buddy Africa Ltd:
Faith, I think there is a bigger financial decision here than simply choosing a business. Your question is about what business to start with Sh250,000, but before you resign, I would encourage you to ask yourself a different question: What is the cost of walking away from a steady income in today's job market?
The NGO sector has been significantly affected by donor funding cuts, and finding another role may take much longer than it did two years ago. While a 50 per cent salary reduction is understandably painful, a reduced salary is still very different from having no salary at all.
From what you have shared, your husband takes care of the household bills and your family enjoys subsidised housing because you live within the school compound. That means your salary has largely been available for saving, supporting your extended family and pursuing your own goals. In just two years, you have accumulated Sh250,000. That tells me you already possess one of the most valuable wealth-building habits: the ability to save consistently.
Before making a decision, look at the numbers instead of the emotions. Yes, your salary will reduce from Sh30,000 to Sh15,000 per month. But because the major household expenses are already covered, that Sh15,000 still gives you a regular income, allows you to continue building your work experience, and buys you time while you plan your next move. If you resign, however, your income immediately drops to zero, and your Sh250,000 savings suddenly have to do two jobs: fund your living expenses and finance your new business. That puts enormous pressure on both.
I would also encourage you to reconsider the order of your financial goals. You mentioned that your plan was to save Sh1 million so that you could buy a car and start a clothing business. Given your current circumstances, I would reverse that order. A well-run business can eventually help you buy a car, but a car is unlikely to help you build a business. It will also come with fuel, insurance, servicing and maintenance costs at a time when preserving cash is more important.
If your long-term dream is to own a clothing business, I would avoid investing the entire Sh250,000 immediately. Think of your savings as a means to buying yourself time. Many businesses take several months before they can generate consistent profits, and having an emergency fund means that you will not be forced to close the business simply because sales are slow at the beginning.
A practical approach would be to keep around Sh100,000 in a money market fund as your emergency fund. Then use Sh100,000 to Sh120,000 to test your business idea on a small scale, while keeping the balance as working capital for restocking and unexpected expenses. Starting small gives you room to learn, make mistakes and adjust without risking everything you have worked so hard to save.
I also noticed something else in your story that many people would overlook. You live within a school compound. That means you already have a ready market around you every day: teachers, support staff, parents and students. Before thinking about renting a shop elsewhere, ask yourself: What do the people around me buy regularly?
If you decide to venture into clothing, you could specialise in products that naturally fit your environment, such as children's clothes, school sweaters, socks, sportswear or uniforms. You could even start by taking orders through WhatsApp and supplying colleagues and parents before expanding further. One of the biggest challenges new businesses face is finding customers. You are fortunate to already have potential customers within your daily environment.
Finally, you mentioned that you are considering having a third child. That is a wonderful personal decision, but from a financial perspective, I would avoid making three major life changes at the same time: leaving employment, starting a new business and expanding your family. Each of these requires time, money and emotional energy. Tackling them one at a time significantly improves your chances of succeeding.
Faith, you have already demonstrated that you can save, plan and delay gratification. Those are qualities that many successful entrepreneurs spend years trying to develop. Don't let the uncertainty caused by your employer's situation convince you to abandon those strengths.
Sometimes the smartest financial decision is not choosing between employment and business. It is allowing one to quietly finance the other until the business is strong enough to stand on its own.
That way, your Sh250,000 remains what it should be: the foundation of your next chapter, not the cushion that softens an avoidable fall.
