Let’s review some of the best-unexploited investment opportunities in Kenya this year. The first world countries thrive in knowledge-based economies. Kenya and other third world countries, however, are still struggling with prime opportunities of the past such as selling livestock and plots.
Even with the abundance of investment opportunities in Kenya 2020, most people are reluctant to take on the new investment opportunities.
I am sure you can relate with me because each time you flip on your TV, you must see adverts on plots for sale. Each time you drive to work, you must come along a herd of cows along the road.
In a nutshell, we are still tied to traditional practices even in the new wake of globalization. I am therefore convinced that it is the high time people started to venture into the knowledge-based economy.
Knowledge-based economies are more profitable compared to traditional investment opportunities. In this article, we are going to learn some of the modern investment opportunities you can start in Kenya.
If wealth was determined by the amount of hard work that one puts in every day, it is no doubt that Kenyans would be some of the richest nationalities in the world. Nevertheless, wealth creation is not dependent on the amount of labor.
It is a field that requires smartness and priorities. Kenyan youths are some of the most hardworking people I know.
However, the lack of information has kept them in a situation somewhat similar to slavery. They have to toil painfully to make a decent living.
If the same amount of effort was to be applied on the investment opportunities in Kenya that I am about to share, Kenyans would be sailing in the same boat with the privileged youths of America and Europe.
Unemployment in Kenya
Even as we talk about our unfortunate situation, we cannot turn a blind eye to the behavior of some Kenyan youths. Kenyan Youths are hardworking and careless at equal measure.
Yes, they work very hard in this tough economy but fail to plan for what they have worked for. We have seen hashtags like #TumiaPesaIkuzoee which are pioneered by our youths.
A successful investor will tell you that it makes no sense if you struggle to make the little fortune only to blow it away in one weekend after a month of hard work.
Youths ought to be rational about how they have fun and strike a balance between work and play. Remember, if you live ones, make sure you live better.
Must read: How Kenyans are making crazy money in 2019
Investment trends in Kenya
The best way to use the money until it gets used to you is to spend it on something that will earn you more money so you will have multiple income streams that will enable you to have more fun.
This begs for the Question, which are these investment opportunities in Kenya 2019? If you were able to understand these trends, the opportunities in Kenya would be endless:
- The market dynamics
- Supply and Demand
- Risk tolerance
- Inflation and its impact on various opportunities
- Competitiveness of the opportunity
- Needs of the Kenya Consumer
- The regulatory ecosystem
While one may not be able to understand all these aspects, we have pinpointed some of the most promising investment opportunities in Kenya 2019.
Best Investment Opportunities in Kenya
- Bonds and shares (Nairobi Stocks Exchange NSE)
- Financial lending (peer to peer lending)
- PR and Branding
- Real Estate
Let’s explore the potentials presented by each of the above investment opportunities in Kenya…
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Branding sector | Investment opportunities
This is another sector in Kenya that has made people millionaires. Humans are social beings who often congregate for various occasions. This presents an opportunity for an investor to cash in and reap big.
Every week, weddings pop up in almost every corner of the country, political rallies happen more often than you can tell among other things that bring people together for the purposes of celebration or solace.
This makes branding a big opportunity for many especially the youth who can take advantage of it.
This is the perfect sector for the youth to invest in. If they joined hands, they would reap good returns in the sector which is not capital intensive, and risks are really low.
Farming and Agribusiness | Investment opportunities
In Kenya, 85% of the rural workforce is employed in farming and agribusiness related ventures.
Agriculture is one of the key employers in Kenya and the world over. Agribusiness is a promising sector since it becomes more and more valuable as more people continue to abandon the farm for urban life.
Every day, the global population continues to rise while the land remains constant. Due to this phenomenon, farmland has become a scarce commodity and food prices continue to rise.
One thing that will remain as sure as death is that people will never stop eating. In times of scarcity and sufficiency, times of joy or sorrow, people have to eat. It is through food that we get the energy to live.
Read also: Top 10 mobile loan apps in Kenya 2019
For that reason, there is always a demand for food making agribusiness a worthy venture.
The beauty of farming is that it is scalable and you can farm a crop that is within your budget.
For example, with a capital of Ksh 10000, you can easily establish a small plot of Kunde, Carrots, Kales, Capsicum, and Strawberries.
By studying the Kenyan food demand, one can take advantage of draughts, and political aspects which make the food prices to shoot.
Buying Shares and Bonds from NSE
While many people may not see it that way, for me, this is the best way one can make money right now.
Due to a myriad of reasons the NSE has been performing dismally for the last couple of quarters.
Some being a poorly performing economy, lack of investor confidence, lack of investor awareness for the local investor and too many profit warnings from the listed firms.
Company stocks are recognized as shares. Shareholders can purchase shares in any public company listed in the Nairobi Stocks Exchange (NSE).
This may give you all the reasons not to buy shares or bonds from NSE but trust me, it is always the best window to enter the market when the prices are low.
When the tides subside and the country starts to gain traction, you will be seated in the front seat waiting for the wind to hit the sail.
Buying Bonds and shares is not capital intensive. Most IPO’s announce minimum shares worth between Ks.5, 000-Ks.10000.
However, the risk is always higher compared to other investments but HEY! The rewards are relatively gratifying.
Investing in Peer to Peer Lending
The loans business in Kenya has taken the country a storm with tens of mobile loan apps mushrooming everywhere.
While these may be private companies, peer to peer lending platforms allows you to make money by loaning other people at an interest rate.
For example, with Ks.10, 000 you can lend small amounts to your trusted business associates in return for a small profit margin.
Peer lending is prevalent in the US where cash strapped business communities rely on a few individuals to boost their capital to increase stock or assets. One of the platforms that you can join for peer to peer lending in called Zidisha
The last decade has seen a significant rise in the value of land and other real estates. This has made it incredibly expensive to own a property in a prime location today. However, this does not mean that you cannot invest in the real estate sector.
As a matter of fact, it is one of the most rewarding ventures in Kenya today. If you do not have the millions to buy a piece of land and resell it at a profit, why not consider doing so as a group.
A real estate investment trust (REIT) works similar to a mutual fund and its an excellent way of owning residential and commercial property as a group.
REIT has several benefits as one contributes an amount that is not strenuous. Other benefits include:
- High Liquidity – REITs shares are traded on the major stock exchanges which make them easy to buy and sell.
- Tax advantages – Since REITs tend to be held for an extended period of time, investors enjoy higher capital gains.
- High income –REITs are required to pay out at least 90% of their revenues in the form of dividends to investors each year.
- Diversification – Buying REIT shares involves purchasing a portfolio of properties or mortgages and not a single property.
That is it with the 5 best investment opportunities in Kenya. Feel free to suggest other investment opportunities in the comments section below.