I am 37. I have been working in the Middle East for the past 10 years and now I want to come back home for good. I have saved close to Sh4.5 million at the bank. I left off school after Form Four and don't have skills that can give me a formal nine-to-five job. I would like to get married, start a family, a business, and build a house for myself.
However, I do not know how to go about this. Sh4.5 million is a huge amount for me and I don't want to waste it because I don't ever want to go through the hardships and life I went through in the Middle East to raise it. I have a driving license and I am also thinking of getting into the matatu business but I have been discouraged a lot by people that I will be throwing my money away. Where do I invest my money to achieve my goals and escape hard life for good?
Alex Kibebe is the founder of Rubiani Wealth Management Ltd and an investment consultant and business development coach
You will need to apply your Sh4.5m savings cautiously and wisely to achieve long-term goals like family, income, housing and business, while still meeting day-to-day expenses. The key is to split your capital between a secure, income-generating investment and a practical business venture that aligns with your skills and experience.
Start by setting aside about Sh200,000 to cover for your first six months of basic expenses. This will give you some breathing room as you settle in and plan your next steps while allowing your investments time to start generating income.
Next, invest about Sh3.5 million in a long-term Infrastructure Treasury Bond (of 10 years and above). These government-issued bonds are low-risk and currently yield about 12.5 per cent to 13 per cent annually, tax-free. That translates to roughly Sh455,000 per year, paid in two instalments of around Sh227,000 every six months — guaranteed. Since infrastructure bonds are exempt from withholding tax, you receive the full amount.
This semi-annual payout will be a buffer income, helping you handle emergencies, support a young family and gradually fund other long-term goals such as building your home. Should the need arise, you can also sell part of your bond to access funds without liquidating the full investment. You can invest in Treasury Bonds either directly through a CBK auction or from the secondary market (Nairobi Securities Exchange).
Low risk investment options
While waiting for your bond interest, consider placing idle cash or payouts in a Money Market Fund (MMF). MMFs currently yield six to 11 per cent with funds accessible on short notice. This is a smart way to build an emergency buffer or save toward medium-term goals such as business expansion. You can compare the available Money Market funds and identify one that is reputable and gives a good return.
If you are open to exploring other low risk investment options that pay an income, you can explore Income Drawdown funds offered by insurers. These provide regular income (monthly or quarterly) from your invested capital. However, returns are generally lower than Treasury bonds, around seven per cent to 11 per cent before fees and taxes, so bonds still remain the stronger income anchor.
Use the remaining Sh800,000 to start a business you understand and are skilled at. I would advise you to avoid the matatu business unless you have deep operational knowledge and trustworthy partners. Many matatu investors lose money due to mismanagement, theft or unstable income. Note that getting into this line of business will consume your current savings and still demand more, with the cost of a new unit going at Sh5.2 million excluding Sacco registration fees and other associated costs.
Professional financial advisor
A better option given your driving experience is to purchase a vehicle for Uber or other ride-hailing platforms. This model has less risk and gives you more control with predictable cash flow and preserves capital in the asset. Another business option you can consider is leveraging your experience abroad to set up a recruitment bureau that helps others find work in the Middle East. You already understand the system and this knowledge gives you an edge in creating a compliant and trusted service.
In summary, ensure that a bulk of your savings is put in low-risk investments that generate consistent income and cautiously start a business that you understand or have an edge in. This approach will give you financial stability and a strong foundation for your future. Your primary focus should be to establish a solid foundation from which you will earn regularly, with passive income coming in from investments, before you can start your family journey.
Note that it is easy for your judgement to be clouded when you have money – kujenga ngumu, kubomoa rahisi ! As such, I would also highly recommend that you involve a professional financial advisor of good standing and integrity to walk with you so that you don’t misuse your hard-earned money.
For example, investing the recommended Sh800,000 in a new venture is an enormous undertaking that you should do in a careful and phased manner to maximise your chances of breaking even. At the same time, I would urge you to drop the negative attitude that some jobs or businesses are beneath you simply because you are returning from abroad. If you can get a job that saves you the Sh800,000, it would be advisable to hold it first and reinvest this money elsewhere such as in MMFs. This will give you time to settle in, calm down emotionally and mentally, and learn and understand what is working and what is not working around your new environment in Kenya.
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