With steady learning and small steps, you will gain control of your financial future and start seeing your money work for you.
I am not married and don’t have kids. I am turning 35 in a couple of months. I earn a net salary of Sh195,000 per month from my work in the non-governmental organisations sector. I also have a registered company that secures county supply jobs from time to time. My company has an operating capital of Sh8 million, which I have raised from savings and these types of jobs. Although I make decent money, I am not good with investing. My whole salary goes to funding my lifestyle while any profit I make from county tenders is reinvested as capital in the company account.
My monthly expenses are rent Sh50,000, black tax Sh30,000 (I support my mum and pay college fees for my younger brother), merry-go-round Sh20,000, personal care Sh30,000, groceries and shopping Sh30,000, fuel Sh10,000, home entertainment, internet and airtime Sh15,000, miscellaneous Sh10,000.
I would like to start and build an investment portfolio that can generate at least Sh200,000 in passive income per month such that I would still live comfortably if I ever lost my job. I also have goals that I never seem to get started on such as buying a four-bedroom house or apartment within Nairobi. I request your guidance to set me on the path towards achieving these goals. — Grace
Inziani Khasiani, financial consultant and the executive director at Klientele Kenya.
Acknowledging that investing feels unfamiliar and challenging is the first important step—many people share the same experience. The key is building your financial literacy so you gain confidence, clarity, and control over your money decisions. Start with foundational education: understand basic investment concepts. Accessible resources including websites, financial podcasts, practical workshops, webinars, or beginner-friendly online courses. This will equip you with the vocabulary and tools to make informed choices about your money.
Pair this learning with simple tools [Do It Yourself] to track your progress—such as budgeting apps or spreadsheets. This helps build positive habits like regular investing, monitoring returns, and adjusting your portfolio over time.
Investing is a skill developed gradually—patience and consistency matter far more than large upfront sums. With steady learning and small steps, you will gain control of your financial future and start seeing your money work for you instead of the other way around.
Now, let us take a clear look at where your money is going each month. Your net income is Sh195,000. Your expenses—rent, support, personal care, entertainment—total roughly Sh185,000. That leaves you with about Sh10,000 monthly.
It is time to uncover the small, unnoticed expenses in your outflows—perhaps daily takeout, extra shopping or forgotten subscriptions. Tracking every shilling for two or three months, using an app or a simple spreadsheet, will reveal where your money leaks. Once you see the pattern, you can start cutting back and free up more for savings and investments.
Achieving a Sh200,000 monthly passive income requires a disciplined, long-term approach with an estimated investment of approximately Sh25 million in physical and digital assets.
Focus on building multiple streams—rental income, dividends, interest, business profits, and digital assets such as online businesses and other digital content like writing a book. Equally important is investing in financial literacy and education to enhance your ability to interpret financial data and make informed financial decisions.
Suggestions on how to proceed include setting clear target dates and financial goals aligned with your timelines. Build a diversified portfolio of passive income streams, starting small in line with your targets.
Use debt strategically to acquire income-generating assets. Regularly review and rebalance your portfolio in response to micro and macroeconomic developments.
Financial education
The idea of buying a four-bedroom house is exciting—and very doable. In Nairobi, such homes typically cost from Sh10 million, depending on location.
Start by defining which areas suit your lifestyle and investment goals. Is it for personal use or rental income? If rental, ensure the location attracts tenants—consider accessibility, amenities and security.
Alternatively, accumulating enough savings for an outright purchase gives you more control and reduces debt. Break your savings goal into manageable monthly targets and stick to them. Small, disciplined steps will get you there.
Assuming you allocate Sh50,000 monthly for loan repayments, here is a mortgage scenario: with typical interest rates of 12 percent to 14 percent per annum, you might qualify for a mortgage of around Sh4 million to Sh5 million over 20 years. Pair that with savings of about Sh3 million (saved over a few years), and you could buy a property worth Sh7-8 million.
Larger properties or posh neighbourhoods may require a longer savings period or higher repayments. Borrowing reduces your upfront savings time but commits you to long-term repayments. A balanced approach—saving aggressively while borrowing smartly—often yields the best results.
There is also a real opportunity to expand your County supply contracts, especially given your healthy operating capital. Leverage your existing relationships to secure more frequent, higher-value tenders. Since cash flow in County Government is often delayed, resulting in unpaid bills, establishing payment guarantees should be a priority to strengthen business growth. Consider increasing your capacity—perhaps by purchasing wholesale to resell at retail or contract prices.
Grace, I understand these goals can seem overwhelming at first. But every journey begins with a single step. Financial education should be a priority. Track your expenses honestly, invest consistently and focus on the long-term picture. Your dreams of financial independence and owning that beautiful Nairobi home are within reach—you only need a clear plan, discipline and patience.
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.
