I am 20. I live in Kisii County and work as a boda boda rider. I make between Sh9,000 and Sh12,000 per month. The motorcycle I use is not mine. I am not well-schooled as I dropped out in Form One. My maternal grandfather recently died and during a family meeting, I was informed that she had left me a piece of her land worth Sh600,000. The thought of cashing in is driving me crazy and I have not been sleeping properly. If I sell, it will be the first time I touch that amount of money. It is enough to buy my own boda boda or even a second-hand Probox, find a girl and marry. But I am also afraid of misusing it. I currently live in my mum's compound where I have a small cubicle and most days eat at my mum's. Please help me before I go crazy. Gabriel
Muthoni Njakwe is an accountant and the author of personal finance book Her Shilling, Her Power: A Woman’s Guide to Financial Freedom.
Before making any decision, weigh carefully the return you will get against the risks you are taking. Secondly, you should never hold a lump sum of money if you don’t have a clear investment plan. A plan is what prevents people from wasting rare opportunities.
If you hold on to the land, remember that land in Kisii appreciates at around seven to 10 per cent per year. In five years, that plot could be valued between Sh840,000 and Sh970,000. That is strong growth without you lifting a finger.
The challenge is that if you keep land without developing or leasing it, you will have wealth only on paper. You will remain what some call a “broke millionaire” – rich in property but struggling in your pocket. That can be frustrating when your daily life feels unchanged.
If you sell the entire land, you can quickly transform your daily income. A brand new boda boda costs between Sh95,000 and Sh160,000. Owning one could raise your monthly earnings from the current Sh9,000–12,000 to about Sh20,000 after expenses.
That difference of Sh8,000–10,000 per month equals about Sh100,000 extra every year. Over five years, you could generate close to Sh500,000 just from riding your own bike. The return on investment is clear and immediate. But you should also know that a boda boda depreciates. After five years, it may only be worth Sh30,000–40,000. Worse still, the temptation to misuse the remaining cash is high.
This is the same high risk of becoming complacent due to the attitude of being a bike owner. You may assume you are answerable to no one, as opposed to the current state where you have to work extra hard to meet the common daily dues of about Sh300 owed to the boda boda’s owner and still eke out a profit for yourself.
Marrying is okay, but selling land to marry is living beyond your means. Many young men have gone down that road and ended up with regrets. At age 20, you are psychologically unprepared for the huge emotional and financial responsibilities that come with marriage.
The wiser and more sustainable path is to take the middle ground. If the land can be subdivided, sell only a portion worth about Sh200,000. With that, you can buy your own boda, set some money aside for savings, and still retain land worth Sh400,000. Over the next five years, that land could grow in value to Sh700,000, while your boda brings in about Sh500,000 in riding income if you work hard and save smart.
Together, that will give you about Sh1.1 million combined value in five years. This balances short-term income with long-term wealth. It gives you dignity and freedom in your work today while keeping your land secure for tomorrow.
You have the advantage of youth. You can live minimally while accelerating your savings. Join a reputable Sacco where you can start creating a portfolio of savings. As a boda rider, your passengers will regularly pay you via mobile money. Make good use of money market funds, where you can make deposits and withdrawals on your phone free of charge while earning compounded interest. Your money shouldn’t stay idle.
You can set a medium-term goal of three to five years to create a stable savings pool that you can use as an emergency kitty and investment capital for a business asset such as a transport vehicle. In five years, you will have learned the ropes of the transportation sector and matured in your worldview.
The focus should always be on the approach that protects you from the temptation of wasting the entire amount while still giving you a fallback if life becomes difficult. This way, you will build a steady income that supports your independence and start a family from a place of stability when the right time comes.
A partner will respect the fact that you have both an income and a future to stand on. Yes, land is a secure investment that appreciates steadily, but you shouldn’t be so fixated on it that you ignore other opportunities with higher returns.
The key is to avoid extremes. Don’t hold all the land while you struggle, and don’t sell everything just because you are excited. Instead, combine both strategies. That way, your inheritance becomes a foundation for lifelong dignity and prosperity.
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
