I am in my mid-20s. I live with my parents in Nairobi County. I finished university in 2024, got a degree in project planning and management and got my first formal job in April last year. My net salary is about Sh46,000. After getting this job, I decided to continue to live with my parents in order to save up money. I started saving in June using a bank account and October using MMF on my phone.
I save Sh10,000 in my bank account and Sh5,000 in MMF. I give my dad and mum Sh5,000 each and use the rest of the money on my personal needs and fare to and from work. The money in MMF is not growing. The returns are coins and I am getting frustrated that perhaps I am missing out on life in return for pennies. I have thought about Saccos but don’t know how capital shares and savings work. If I buy shares, what will happen when I want to liquidate? I don’t want to risk my money. I would like to invest and get rich, start my own business, get a Master’s degree and become an independent woman before I am aged 35.
I would also like to own a small car by December 2026 and I am willing to take a loan to top up for this. The prices I have checked are in the range of Sh1.5 million. Please help me get the right saving and investment formula for my money to achieve my goals. Benta
Muthoni Njakwe is an accountant and the author of Her Shilling, Her Power: A Woman’s Guide to Financial Freedom.
First, I must commend you for asking the right questions at your age. Many people only begin thinking seriously about money much later in life.
With a net salary of Sh46,000, your current allocations are approximately Sh10,000 to support your parents, Sh10,000 in bank savings, Sh5,000 in a Money Market Fund (MMF), and about Sh21,000 for personal expenses and transport. This means you are saving Sh15,000 per month, roughly 33 per cent of your income, which is excellent for your stage of life.
However, while your saving rate is strong, most of your money is sitting in tools designed for capital preservation rather than growth. This explains why progress feels slow. Money Market Funds are not meant to make you rich. They are designed for safety, liquidity, and short-term holding. Because of their low-risk nature, returns especially on smaller balances will always feel modest.
This does not mean the MMF is failing you; it is simply doing what it was designed to do. The mistake many people make is expecting safe money to behave like growth money. Once you separate safety funds from growth funds, your financial plan becomes clearer and far less frustrating.
SACCO Savings vs Capital Shares
SACCOs are powerful financial tools when used correctly. Savings (deposits) are your actual money. They earn interest and determine how much you can borrow, and they are usually withdrawable, though often with notice. Capital shares, on the other hand, represent ownership in the SACCO. They earn dividends but are not easily withdrawn unless you exit the SACCO, which can take time.
If your priority is low risk and flexibility, it is wise to keep capital shares minimal and focus more on savings deposits. This allows you to benefit from SACCO membership and affordable loans without locking up money you may need in the near future.
A clear and realistic saving and investment formula
Phase 1: foundation (first 12 months)
The first and most important priority is building a solid safety net. During this phase, allocate Sh10,000 per month to an emergency fund held in a Money Market Fund, with a target of Sh100,000-Sh120,000. This fund protects you from unexpected expenses such as medical emergencies, job disruptions, or urgent family needs without forcing you into debt. At the same time, set aside Sh5,000 per month into SACCO savings, which builds disciplined saving habits and gradually increases your borrowing power. At this stage, it is important to avoid car loans or risky investments. The sole objective of this phase is stability and peace of mind.
Phase 2: asset & goal building (after the emergency fund)
Once your emergency fund is fully in place, you can begin actively working toward your medium-term goals. Allocate Sh7,000 per month toward car savings, while continuing with Sh5,000 per month in SACCO savings. In addition, set aside Sh3,000 per month for education or business preparation, which can later support your Master’s degree or seed capital for a business.
When the time comes to purchase a car, it should be through a combination of savings and a carefully structured loan. Ensure that total loan repayments do not exceed 30–35% of your net salary to avoid financial strain.
Phase 3: growth and independence
Only after you have a fully funded emergency account, stable SACCO savings, and consistent income stability should you shift your focus toward long-term growth. At this point, you can gradually increase allocations toward business capital, long-term investments, and funding for your Master’s degree. Following this phased approach will prevent burnout, reduce financial pressure, and create sustainable progress toward your financial independence.
Trying to fund emergency savings, buy a car, pursue a Master’s degree, and build wealth simultaneously can dilute progress and increase stress. Instead, break your goals into short-term, medium-term, and long-term phases. Each completed phase strengthens the next and builds confidence along the way.
Savings alone won’t make you wealthy
Savings build discipline and give you options, but long-term wealth comes from growing your income. Invest in skills, advance your career, pursue relevant certifications, and explore side income aligned with your strengths. Any additional income should feed your long-term goals and accelerate your journey to financial independence.
You are not behind; you are early and intentional. By giving every shilling a purpose, sequencing your goals wisely, and combining disciplined saving with growing your income, you will create a clear and achievable path toward owning a car, funding your Master’s degree, and building sustainable wealth. Start where you are, stay consistent, and let time work in your favour.
We make Sh126,000 as a couple; how do we raise Sh4.5 million to finish our mansion, upcountry?
We are married with two children. We are employed in permanent and pensionable jobs and earn a combined amount of Sh126,000. We currently have one main debt of Sh330,000 which we took from a relative that we need to pay off by April 2026.
We have an unfinished four-bedroom maisonette house located in Machakos County that we want to finish before the end of this year. The approximate cost of finishing is between Sh2.5 million and Sh3 million.
We also have three acres in Nyandarua County that is currently idle. We would like to fence off this land, build a modern zero-grazing infrastructure, and a live-in wooden house for a farmhand. The goal is to start dairy, goat, and chicken farming, and also farm peas, cabbages and potatoes. We are thinking of investing Sh2 million loan into this project. Currently, we only have Sh120,000 emergency kitty saved in a bank account. Our main expenses are: school fees Sh150,000 annually, rent Sh24,000, shopping and groceries Sh25,000, househelp Sh12,000, our parents (both sides of family) Sh20,000, tithe Sh12,600, fuel Sh12,000, airtime Sh2,000, power, water & tv subscriptions Sh13,000. How do we achieve these goals?
Alex Kibebe is the founder of Rubiani Wealth Management Ltd .
Your combined monthly income is Sh126,000 against monthly expenses of about Sh133,000, after factoring in a monthly provision of Sh12,500 for school fees. This means you are currently running a monthly deficit of roughly Sh7,000.
In addition, you have an outstanding loan of Sh330,000 that is due in April of this year. You are also looking to complete your home in Machakos and invest in agribusiness on your Nyandarua land.
To achieve these goals without exposing your family to excessive financial risk, you will need to adjust your timelines and deliberately reduce your expenses to eliminate the monthly deficit and generate a surplus of at least Sh15,000 per month, which will form the foundation for debt repayment and future investments.
Begin by reviewing your expenses based on priority. For instance, you could reduce your shopping and grocery budget to about Sh20,000 by sourcing from more affordable markets and cutting back on luxuries.
Parental support could be temporarily reduced to Sh10,000 through open discussion. Fuel costs could come down to around Sh8,000 by using public transport where practical, while water and television subscriptions could be reduced to about Sh10,000 by limiting entertainment expenses to internet services only.
If you manage to consistently free up Sh15,000 per month, I would advise that you prioritise clearing the Sh330,000 loan. With only three months remaining, settling the full amount by April may not be feasible. A more realistic approach would be to renegotiate the repayment terms with your relative. One option would be to pay Sh80,000 from your emergency fund immediately, and then commit to monthly repayments of Sh15,000 from now until April 2027, at which point the loan would be fully settled. Once out of debt, prioritise rebuilding your emergency fund using your savings over the next five months, to replenish it with at least Sh75,000.
Once your emergency fund is restored, your next priority should be that of completing your Machakos house to a liveable standard. Doing so would save you Sh24,000 monthly rent, significantly freeing your budget. However, borrowing Sh2.5–Sh3 million at this stage would place significant strain on your income.
I would encourage you to re-budget the project to focus strictly on making the house habitable rather than fully finished. Possibly, a budget of around Sh1.2 million may be sufficient to achieve this. If you were to take such a loan from a SACCO at an interest rate of about 12 percent per annum over five years, the monthly repayment would be approximately Sh26,700. You could apply your Sh15,000 monthly savings toward this amount and temporarily fund the shortfall from your emergency fund and, or from halting the allocation of Sh12,600 to tithe. Note that while tithe is based on personal belief, it is not cast in stone, especially when it is to the detriment of your financial wellbeing and progress.
Once the house is complete, the rent savings would comfortably cover the loan repayment, with the surplus redirected into savings or a Money Market Fund (MMF) - to boost your funds.
The other alternative is to sit down with your fundi and identify the most critical parts of the house that need to be done for you to move in and start saving on rent. For example, installing steel doors and windows on one section of the house could allow you to move in and complete the other parts in phases. This would save you the amount that is currently going into rent, which you can then redirect to acquiring some of the required accessories such as tiles.
Regarding the Nyandarua farming project, I would advise against taking a loan at this stage. While agribusiness can be profitable, it carries significant risks especially when managed remotely - including delayed cash flows, losses due to poor supervision, weather and disease risks, and the learning curve associated with farming.
A more prudent approach would be to develop the project gradually using savings. You could start by fencing the land and then build a basic farm house. Next, focus on one income stream such as potatoes or poultry. As the venture stabilises and you gain experience, you can reinvest profits and expand into additional lines.
If you follow this phased and disciplined approach, you should be able to clear your debt, stabilise your cash flow, and make meaningful progress on your housing and farming goals over the next two to three years without placing undue strain on your family’s finances.
If you have any money problems, send us an email at [email protected] and leave your number for contact. Money questions will be answered on this column.
