How to Invest 100K in Kenya

So, if you ever came up with 100K, what would you do with it? Well, there are quite some ways to invest 100K in Kenya; you need to know which opportunities will work out in your favour.

The primary goal of investing is always to maximise growth through an acceptable amount of risk over some time.

How to invest 100K in Kenya

Here’s a list of investments you can undertake to multiply your cash.

  1. Start a car wash business

How often do you clean your car? How much do you pay for the service? Where will the car wash be situated? Do I have resources to start it? Equipment needed? These are some of the questions that need to be at the top of your mind before venturing into this business.

Must Read: Booming Businesses in Kenya

Setting up a small car wash business doesn’t require a lot. What you need is a prime spot, enthusiastic workers, an endless supply of water and steady electricity (generator).

Of course, these costs will vary from business to business.

However, what matters most when it comes to setting up a thriving car wash is the location. Aim to set up your business in an area with constant steady traffic.

You should also ensure that your carwash is easy to spot and easy to access as well.

2. Invest in Money transfer business

Money transfers hit the country with a bang with almost every Kenyan using MPesa virtually daily.

Operating a money transfer business requires a branded shop, an ETR machine, registration and need by clients.

Siting a good location for this may not be hard as money transfer is required everywhere every time.

3. start a Daycare centre

With the ever-rising cost of childcare as well as unreliable house-helps, parents around Kenya are seeking alternative methods of raising their kids; this is where the centres come in.

Daycare offers parents a chance to leave the children under professional care in their preferred environment.

To open a daycare, you have to secure a children-friendly environment, acquire the necessary documents, facilities and to market your brand.

4. Invest in a Sacco

How to invest 100K in Kenya

There are numerous benefits to investing in a Sacco.

Especially if you have plans to set up a business or undertake a personal project shortly.

The best part about investing in a Sacco is that many of them are willing to lend up to 6 times the saved amount.

This will allow you to expand your business with an excellent Capital base and low interest.

Here’s a list of some credible Saccos in Kenya

  • Mwalimu Sacco
  • Stima Sacco
  • Mhasibu Sacco
  • Waumini Sacco
  • Kimisitu Sacco
  • Safaricom Sacco
  • Harambee Sacco
  • Unaitas Sacco
  • Elimu Sacco,
  • Kisii Mwalimu Sacco,
  • Cosmopolitan Sacco

5. Invest the 100K in Farming

Farming is an ideal way you to invest 100K in Kenya, but you should be very careful not to invest in crops which will give you little or no returns.

The most profitable crops to plant in Kenya include:

  • Tomatoes
  • Watermelon
  • Mangoes
  • Avocado
  • Bananas
  • Greens

Kenya’s economy is essentially still agri-based and looking around almost every single home in rural Kenya and many urban homes, there is some agriculture going on.

Food is and will always be in demand all over the world. Agribusiness is, therefore, one of the essential business ideas in Kenya.

You can never go wrong if you add value to agricultural produce and sell. For example, instead of just selling milk, turn it into mala (sour milk), yoghurt or cheese.

You will fetch much better prices in the market.

Must Read: untapped business ideas in Kenya

6. Start a Boda Boda business

How to invest 100K in Kenya

The Boda-Bodas make one of the fastest-growing industry in Kenya with many Kenyans using boda-bodas to carry our errands and reach places they could walk to before.

Every town and shopping centre has some boda-boda operators who ferry people to and fro.

This type of business has a lot of perks. For starters, it is effortless to set up a boda-boda business.

In less than two weeks, you can have a fully functional bike on a lucrative route, making you money.

Secondly, this business has fast returns that can go a long way in supplementing your income.

On a good month, this type of business can bring in as much as Ksh 40,000 or even more depends on the area of operation.

Thirdly, this business has low operating costs. What you will have to take into account is the recurring expenses such as fuel, salary, and maintenance costs for the motorbike.

To begin this, you’ll need to purchase or rent a motorbike, protective gear and you’ll be ready to go.

7. Invest in commercial cleaning services

Companies and businesses have long stopped hiring their cleaners and are now contracting outside companies to get the work done.

You will require reliable staff, equipment, and materials to get this done.

To get clients, you will need to market your company by letting possible clients know your brand and consider giving you a tender.

8. Selling mitumba or second-hand clothes

This is among the business ideas in Kenya that most Kenyans fear to venture into.

However, second-hand clothes business is booming, and if you are looking for a business to start, this would be the best business for you.

The good news is that you don’t require a lot of capital to go into the mitumba business. With as little as 1,000 you can start selling mitumba clothes.

All you need is to get a good location and know where you to buy your stock. Most traders buy theirs at Gikomba and Muthurwa markets in Nairobi.

You can be assured that on an average day, you can make a profit of around 500 shillings.

9. E-Commerce stores

How to invest 100K in Kenya

By providing a platform for all these people to sell their items, you will make good money.

Come up with an online store such as jumia, pigiame, rupu etc. Ask people to place their items for sale at a small fee and market this platform vigorously.

Your platform should have categories for example cars, real estate, households, electronics, furniture, clothes, gift items, jewellery, books, foods, services etc. complete with beautiful pictures for easy navigation.

Tips on how to invest 100K in Kenya

1. Do your market research

This will help you accurately calculate opportunity costs and probabilities of return. By doing market research, you’re trying to minimise the risk by getting as much information as possible.

In your market research, analyse your competition, calculate the risk of execution, check if there is proof of concept (whether there is somebody else is already doing it), examine competition risk, check what the margins look like, and so on.

2. Get expert advice on how to invest 100K in Kenya

Some consultants specialise in every field. For example, if you want to go into the hotel industry, there are people whose primary focus is just understanding the hotel business.

The same goes for mining, energy – basically every industry you would want to venture into.

These people are typically end-to-end experts. Each area has its own rules and regulations that the consultant must know and understand.

They understand the market very well, the competition that’s in that business, and so forth. You need to have a 360-degree view of this.

It typically does not take more than one consultant, but the maximum is usually two – a consultant in that specific area, and maybe a financial consultant.

3. Weigh the risk

What is the probability of return? To understand the risk versus benefit, look at betting, as an example.

You can make a return of one million per cent. You can invest in Sh100 and get Sh1 million.

However, what’s the probability of that happening? It’s infinitesimal, far less than 1 per cent. You are more likely to lose the Sh100 than make the Sh1 million.

This is an extreme comparison, but the concept is the same. What is the probability that you can make a return in business X?

Also read: investment opportunities in Kenya

4. Assess the opportunity cost

If you have several investment opportunities, consider what you would be preceding in other areas for the sake of your preferred investment.

For example, if you’re looking at purchasing new equipment for your business, you have to consider the cost of that against, for instance, investing money in a Treasury bond.

Consider if the return of investing in this business is significantly higher than investing in other businesses, and then make your decision.

5. Avoid the common pitfalls

The biggest mistake I regularly see entrepreneurs making is failing to understand their business well enough.

The other one is expanding too fast when they should be consolidating their finances. Taking on too much debt is a mistake because it diminishes the ability of your business to work for itself.

There are other methods of funding, such as bringing in equity investors, to help you cushion your business. And it doesn’t have to be from a private equity fund – an equity investor can be someone from your family, and it can be a firm basis for future growth.

Your expansion strategy should have the right mix of debt and equity. Equity offers the basis to expand, and then you can use debt.

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