Kenya is a land of endless opportunities for everyone. It is one of the fastest rising economies in Africa, and many investors are already reaping big with their startups. As a youth in Kenya, you may be left out not knowing where to start. Let's face it, we all need a role model everywhere, even in the financial world, but we hardly get anyone to share with us the best industry tips on investment opportunities.
In this particular post, I will share with you the best investment ideas in Kenya that are just tailored for the youth. We will also take a look at the best investment strategies and the risk factors. So stick and read on.
Untapped Investment Ideas in Kenya
To begin this discussion, we will go through the main things first. The investment ideas that you can learn from scratch and make real money as a Kenyan youth. Note that hard work is the key here. We will not be discussing shortcuts to success since none exist. Literally.
1.Stock Exchange: The NSE
Some of us already know what stocks are. Well, if you are new here, I will give you a little explanation for this. For a new company to get a considerable thrust, they need capital. This might not be raised by a single individual or owner of the company, and here is where stocks come into play. The company will collect capital by selling what is known as shares to the public. After a long run, the company's value will rise, and they will then buy their stocks at a higher rate, you can also sell these shares to other interested parties. Let's say you bought Safaricom shares at Sh200 each in 2017 and later sell the stocks at Sh2000 each in 2019. See the math? You gain from the stock exchange.
Note: Stock trading is not as easy as it sounds. It would be best if you did intensive market research before getting into this field. Otherwise, you might end up losing all your investment. It is also advisable to go through a broker who already understands the market.
We all need food at the end of each day. Agriculture is a sector that will boom forever; I mean it. There will never be a day that farm produce will lack market unless there's war or something unpleasant. Farming in Kenya is very easy. Why do I say so? Well, 80% of Kenya has land and climate that is suitable for farming. You don't need any capital to begin. Just get something like cabbage seeds and start planting, remove the weeds, and wait for a bumper harvest and sell.
Moreover, who said that farming is all about vegetables? You can also do chicken farming, rabbit; you name it. All these agricultural stuff makes big money at the end of the day. The best part about this is that competition is extremely low. Many people have not yet ventured into farming to pose a big challenge.
In terms of market, you will never have to stay with your produce. From the local market to other towns in Kenya, everyone needs fresh stiff. Besides, the Kenyan government has opened doors for agricultural produce export to other countries. Let me summarise this. Agriculture is the next big thing in Kenya, so as a youth, it's time you get in and invest well.
3. Branding and PR Industry
This is the investment opportunity in Kenya that nobody wants you to know. It is thriving in countries like the US and can work better in Kenya as well. There's a lot of cash to be made here once you are established. All you have to do is build a brand for yourself. An excellent place to do this is through social media channels like Facebook and Instagram.
In this business, you will do stuff like events planning, wedding decorations, developing content for other companies, and many more. Events like weddings happen daily, and they use big budgets, what if you just took a portion of this budget by providing your services? Go for it, and nobody will stop you.
4. Investing in Government Bonds
Bonds are just ways in which the Kenyan government or large companies borrow from the general public to fund their projects, or run the government itself. The Kenyan Treasury bonds provide quarterly, semi-annual, or even annual T-bonds with cash repayment periods of between 1-30 years, you decide on this. Interest rates diversify with the duration of the issued bonds and the total amount issued.
Bonds are an excellent substitute for saving your money in the traditional bank since they fetch higher interest rates in the end — the interest shifts with the prevailing economic trends. The government of Kenya has introduced a new affordable bond called the MKiba bond, bought through Mpesa at the comfort of your home. With as little as just Ksh 3,000, you can earn a 10% annual interest. As a youth, you have the opportunity to multiply your money in the best way we could ever know.
5. Start Your own company
All these big companies you know didn't come out of anywhere and became what they are overnight. Some individuals started them and expanded with time by providing value to clients. As a youth, you can do the same. Just register your company and make it lively and build a brand. It could be a shoe company, a body gel, or anything you are passionate about.
The best part is, once your company gets better, investors will come knocking on your door and finance the company to international levels. You don't have to start alone. Get your fellow youths and do something great.
6. Real Estate Investment
While real estate companies are an excellent investment option today, owning a property now is an uphill task. This, nonetheless, doesn’t mean that you cannot start to invest in the real estate sector. A real estate investment trust (or REIT) which works just similar to a mutual fund is an outstanding vehicle to own a commercial or private property. What are the advantages of investing in a REIT over owning the real property completely?
- High income
- Tax relief
- Options to diversify
Investment strategies in Kenya
Technical Analysis: Always do proper market research before investing in anything. Consulting an expert is highly encouraged.
Value investing: Invest in something that has a higher ROI in the long run.
Always buy and Hold: Investing in stocks? Always try giving it time. It will appreciate it after a while, and you will enjoy the fruits of your investment.
Momentum investing: This is where you invest in companies or stocks that are already stable and seeing a rise in their market shares and value.
Investing as a youth should be self-driven. Always try to be the employer and not the employee. In Kenya today, thousands of students graduate each year and to make it worse, most of them are looking for jobs, being an employee. It's time to be wise and get away from the larger flock and be your own boss as the saying goes.