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How to Invest Ksh 1 Million in Kenya

Kenyan currency PHOTO/Africa News

Investing KSh 1 million can be a daunting task, especially with the current economic uncertainty.

However, with the right strategies and a clear understanding of the market, you can secure your financial future and achieve your long-term goals.

Recently, Gichuki Kahome, the CEO and founder of Coin Connect Kenya, shared the best ways to invest your KSh 1 million in Kenya, including Treasury Bills and Bonds.

In a post on X, formerly Twitter, Kahome shared a thread with 7 different ways people can invest Ksh 1 million and make the most out of it.

First, he advised that putting Ksh 1 million in Invitation For Bids (IFB) will yield 15%, translating to Ksh 150,000 per year.

When invested in British American Tobacco Kenya or The Nairobi Securities Exchange (NSE), the same amount of money will earn Ksh 155,000 per year with the current dividend yield of 15.9%.

Kahome further noted that Ksh 1 million put into Money Market Fund (MMF), it will give a return on Ksh 133,000 after taxes and Ksh 114,000 returns after taxes if invested in Sacco deposits with a dividend yield of 12%.

On the other hand, one will make Ksh 95,000 per year if the same amount of money is invested in Sacco savings with a rebate of 10%.

Kahome noted that investing Ksh 1 million in the average rental property will earn Ksh 75,000 after taxes, 8% return from rental income, with 90% or more occupancy.

Finally, he noted that compared to the ways he shares, putting Ksh 1 million in a bank savings account will earn zero in a whole year.

“Of course you can make more money if you invest in a business of your choice. But that also exposes you to higher risks and you have to do more work. I only talk about financial markets, so that’s only what I can use to make comparisons,” he said.

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