What are the best investment opportunities in Kenya?

If you’re looking for the best investment opportunities in Kenya at the moment, you’re in the right place. No matter how much your initial investment is, there is something for you. However, make sure you’re not putting all your eggs in one basket. This will save you from losing all your money. Know the importance of diversifying your funds.

With investing, it’s essential to know that most that are low-risk typically give out smaller interests.

On the other hand, those that are considered risky may give out higher returns.

Here are some of the most promising investments you can make in Kenya.

1. Bank deposits

There are plenty of large banks in Kenya that offer competitive interest rates.

However, the downside to this is that the interest rate is very low.

Thus, if you’re looking to grow your money, this isn’t the option.

However, if you want a safe and almost risk-free investment, it is the best investment you could make in Kenya.

You could simply put your money in savings or put them in a time deposit account.

The former is considered more liquid money.

However, the interest rate is very low, Meanwhile, the latter is more restrictive.

It will require you to put your money on hold for some time.

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However, this gives you a higher return.

Most large banks in Kenya are protected by the government.

Thus, no matter what happens to the bank, you will get your money back.

Note of the maximum deposit amount covered by the insurance.

Online-only banks in Kenya are known for their attractively high-interest rates.

They are usually double, triple, or quadruple the rate of your typical bank.

The downside to this is that you don’t have a physical bank to go to.

However, because most transactions nowadays in Kenya are done online, it won’t be a huge issue.

2. Stock market

Not many people in Kenya are aware of this type of investment.

It’s one of the best investment opportunities in Kenya.

If you’re looking for somewhere to invest in that gives high returns, you’re looking at the right place.

However, note that the stock market isn’t a quick-money avenue.

Many financial managers and experts recommend it as a long term form of investment.

If you’re looking to grow your money within months or a few years, it might not be your best bet.

Patience and consistency are required.

Furthermore, experts say that you could easily lose money in this investment.

However, it’s only if you treat it like gambling, and if you keep on buying and selling stocks in a short while.

It is not advisable to buy and sell stocks daily.

While some daytraders in Kenya invest in the stock market this way, it’s only because they do extensive research and analyses to make an informed decision.

The key is to follow the concept of cost-averaging.

This requires the investor to buy and set aside money to buy stocks regularly.

Without minding the cost, the investor will buy whatever amount of stocks he or she could with a fixed amount of money.

In some months, you will buy more stocks, in others, you will buy less.

However, experts say that in the end, the average costs will be the same over the years.

Thus, it’s better than timing the market.

Furthermore, you don’t want to invest your money randomly.

Make sure to invest in stable and established companies in Kenya.

Don’t forget to read up on the news to keep yourself updated.

This will allow you to never miss out on any opportunities, too.

3. Mutual funds

Mutual funds are a good way to invest in Kenya if you don’t want to get into the stock market.

The stock market requires you to buy and sell stocks on your own.

While it is a perfectly good form of investment, some are not confident due to a lack of knowledge.

Thus, if you are a newbie and are too scared to handle the stock market on your own, mutual funds are the ideal investment.

In this type of investment, the broker pools the funds from all investors and invests them.

The advantage of this is you have a fund manager that handles your money.

Compared to doing it yourself in the stock market, this requires less research and effort on your part.

Mutual fund investors earn money from yearly dividends paid out regularly.

On a good year, it could be as high as 12% or more.

However, a good performing mutual fund in Kenya will payout at least 6-8% annually.

To begin investing in mutual funds in Kenya, the process is almost the same as investing in a stock market.

Look for your stockbroker in Kenya – most of them are already operating online for more convenience.

Then, submit an application form together with the requirements.

You can get started in less than an hour.

4. Real estate

If you have a substantial amount of money lying around, it’s best to put it to good use.

Real estate is an excellent investment to get into Kenya.

This might be the right choice if you’re looking for small investment opportunities in Kenya.

Real estate would require a larger amount of initial investment.

However, its returns could be a lot higher than other investment opportunities.

Over the years, Kenya has witnessed a dramatic increase in its population.

Thus, more and more people will be looking for a place to live.

As an investor, you can lease your properties to citizens or shops.

This can either be for short-term or long-term.

Meanwhile, some investors do house flipping.

Some investors bid on the lowest property and renovate it heavily.

Thereafter, the property can be sold for higher than what was spent.

Over time, this can turn into a lucrative pursuit.

5. Agriculture business

Agriculture is one of the areas to invest in Kenya this year.

The increasing population in Kenya could also be to your advantage.

Some of the most lucrative agribusinesses are fish farming, raising livestock, vegetable farming, and pig farming.

Furthermore, some investors turn to the construction aspect of agriculture.

Investors lend their money to constructing infrastructure for agriculture.

These include livestock construction or irrigation.

If you are knowledgeable in this area, you could do some consultancy for others who might need your expertise.

Moreover, you could also invest in the fertilizer distribution or animal food industry.

If you don’t know how to exactly raise animals or plant and harvest crops, it’s not an issue.

Although some knowledge in agriculture might be helpful, it’s not required.

You don’t have to do the labor work.

In agriculture investments, you lend your funds to the sector.

Thus, in return, you get a portion of their profit.

In short, you act as a shareholder of that particular company.

It’s a great investment overall.

Furthermore, it’s also an excellent way to support local farmers and the agribusiness in Kenya.

Not a lot of people have tapped into this field.

It might be time to hop in and start investing while it’s still fresh and new.

Start your own business

There is no denying how difficult it is to set up your own business in Kenya.

It requires a lot of time, brainstorming, not to mention, a lot of money.

However, it can be one of the most fulfilling investment opportunities in Kenya that you could ever have.

Your business can be anything you want.

It can be as small or as big as you wish.

When starting a business in Kenya, never rush the process.

If you have no clue what kind of store or shop to open, do some research and brainstorm.

Look around your community and determine the needs of its citizens.

Moreover, observe how the citizens’ day to day lives are in Kenya.

This will give you an idea of what store or shop will pick up and what won’t.

If you already excel at something, the key is to improve and polish your ideas.

You may be a chef looking up to open a new restaurant in Kenya.

You could also be an engineer wanting to start his firm.

Whatever it may be, you still need to think about the essentials.

This can be from the location of your business, how many people you need to hire, your margin of profit, etc.

It might be ideal to talk to someone who is already an established entrepreneur.

Consulting with these people will be extremely beneficial during the initial stage.

Furthermore, ask your friends and family’s opinion about your new idea.

Best investment opportunities in Kenya conclusion

If you are unsure of areas to get investment opportunities in Kenya, the tips above should help.

No matter how much your initial investment is, you could find an investment suitable for you.

The key to investing is to start early.

If you do this, you will get much higher returns due to compounding interest.

Whatever you decide to invest in, make sure to always remain educated and informed.

This will save you time and money from bad investment decisions.