Are you looking for a reliable steps to become rich in Kenya?
The pursuit of financial prosperity is a journey that begins with strategic decisions and a deep understanding of the opportunities available.
Whether you’re just starting out or seeking to improve your financial situation, the pathway to becoming rich in Kenya involves a blend of astute financial planning, resourceful investments, and an unwavering commitment to your goals.
This comprehensive guide aims to equip beginners with actionable insights and practical steps that will set you on the right track towards financial success in Kenya.
By diving into essential strategies, proven methods, and invaluable tips from successful entrepreneurs and financial experts, you’ll gain the knowledge necessary to make informed decisions and carve your path toward prosperity.
With help from financial experts, we have come up with eleven tips on how to become rich in Kenya.
The advice is really simple, but reaching the goal is challenging.
Table of Contents
How to become rich in Kenya
Step 1: Understand what rich means
Richness isn’t only about money. It’s about something deeper. It’s about feeling fulfilled through meaningful relationships, staying healthy, and waking up with a sense of purpose.
Money plays a part, sure, but it’s not the whole story.
True richness lies in finding contentment, gratitude, and living according to your values. It’s a bit like unwrapping a present with layers of meaning—financial security, freedom, and happiness.
Let’s break it down, shall we?
- Think about financial freedom for a moment. It’s not just about earning a high salary; it’s more about having enough to cover your basic needs without that constant worry of making ends meet.
- Picture having your bills covered effortlessly through smart investments or passive income. That’s like hitting the pause button on money stress and hitting play on doing what you love.
- Now, imagine a life with choices. Beyond the basic needs, being rich means having the freedom to choose where and how you work. It’s about pursuing your hobbies without worrying about breaking the bank.
That’s true richness—embracing life’s adventures without financial constraints.
Remember, what being “rich” means can be different for each person. It’s like picking your favorite dish—everyone’s got their unique taste.
So, focus on what truly brings joy to your life.
Blend financial security with what fills your soul and create a life that’s rich in every sense of the word.
Step 2: Understand how money works
It’s more than just those paper notes or coins jingling in your pocket. Money is like the ultimate middleman—it’s the go-to guy for trading stuff you’ve got for stuff you want.
Money is a way to hold value. Picture it as a magic box where you keep your hard work and effort stored safely.
When you earn money, it’s not just numbers on a screen; it represents the hours you’ve put in, the skills you’ve honed, and the services you’ve rendered.
Let’s take Stella, for instance. She bakes delicious cakes. When she sells her cakes for cash, that money isn’t just about buying sugar or flour.
It’s a symbol of her talent, time spent perfecting recipes, and the joy she brings to customers.
Understanding this side of money—its power to exchange goods and store value—is like uncovering the secret code to financial freedom.
It’s not just about having money; it’s about knowing how to use it wisely, how to make it work for you, and how to grow it into something more.
So, as you journey towards financial success, remember that money isn’t just about spending.
It’s a tool that represents your hard work and opens doors to opportunities.
Learn to respect it, understand its value, and make it work its magic for you.
Step 3: Learn High Income Skills
In the modern world, the demand for highly skilled professionals is increasing, and so is the need for high-income skills.
A high-income skill is any expertise or ability that is in high demand and can potentially command a higher salary or compensation.
These skills are often associated with specialized knowledge, technical proficiency, or strong problem-solving abilities.
Developing these talents and knowledge dramatically increases your earning potential and improves your financial situation.
Some example of high income skills include; Public Speaking, Graphic Design , Video Editing and Animation, Coaching, Search Engine Optimization, Coding and Digital Marketing.
Many of them are focused on IT, but there are also important soft skills you need to earn a high income.
Sites like LinkedIn and Skillshare offer low monthly subscriptions to gain access to hundreds of different courses, while Udemy provides courses at set costs in a variety of fields.
When you get good at these skills, it’s not just about learning something new. It’s like upgrading your money game.
They open doors to better-paying gigs and can totally change your money story.
So, whether it’s talking confidently in front of a crowd, making cool designs, or mastering the digital world—these high-value skills can be your secret weapon for making more money.
Step 4: Put Your New Skills to Use
Once you’ve done the learning you’ll need to put your high income skills to practical use.
Start by looking for a job by all means, write resumes and go for interviews.
Sure, a job puts money in your pocket, but it’s more than that.
It’s like a classroom, a place where you can learn and grow.
Every day on the job is a chance to pick up new tricks, refine your skills, and become a pro in your field.
Plus, the experience you gain? Priceless! It’s like leveling up in a video game—each task you tackle makes you better, stronger, and more valuable.
You can also consider freelancing as a way to start putting your new-found knowledge into practice.
Take a look at freelancing platforms like Fiverr and Upwork to get started.
Step 5: Pay off debt
As a new earner, I am pretty sure that you had accumulated personal loans from apps like Mshwari, Tala, Branch, Timiza, EazzyApp or KCB Mpesa.
Starting to pay off debt early on is a smart move for a new earner.
It’s not just about avoiding interest costs; it’s about gaining financial freedom. Imagine having more of your income to use for things you truly want, whether that’s saving, investing, or just having a bit more to enjoy.
And let’s not forget about your credit score now that you have been listed on the Credit Reference Bureau Listing (CRB) because of non-payment.
Being listed on CRB gives you a really bad credit score and will definitely deny you future loans.
So, what you need to do is to be brutally honest to yourself, get your personal report from CRB Services, identify the institution that blacklisted you and clear their debt. Paying off debt on time is a great way to boost it.
A good credit score opens doors for better interest rates on future loans, like when you’re ready to buy a car or a home. But it’s not just about the numbers; it’s about reducing stress.
Being debt-free means less mental burden and more peace of mind. And here’s a thought: being debt-free puts you in control and opens up opportunities for your future.
In the end, paying off debt isn’t just about money; it’s about setting yourself up for a healthier financial future. So, why not start now?
Step 6: Start a side hustle
With a 9-to-5 job, you must be thinking of how to earn extra income. Well, here’s a game-changing idea: consider diving into a side hustle, either through freelancing or opening an online store.
It’s like giving your finances a booster shot.
- Freelancing allows you to leverage your skills on your own terms, whether it’s writing, designing, or coding, adding an extra income stream while letting you pursue your passions.
- Alternatively, opening an online store is like having a virtual shop that syncs with your schedule. Whether you’re crafting, selling unique products, or exploring drop shipping, it’s a chance to turn your interests into extra cash.
Beyond the money, a side hustle unleashes your inner entrepreneur, offering both financial flexibility and a whole lot of fun.
So, why not dip your toes into the side hustle pool? It might just be the key to unlocking new opportunities and boosting your overall financial game!
Step 7: Live like you are poor
Now that cash is rolling in, it’s only natural that you start brainstorming on how to spend it. The possibilities seem endless and the excitement is clear.
Yet, in this moment, you know it’s time to put that financial superpower into action: self-control.
It’s not a distant idea; it’s like having a shield against impulsive spending, ensuring your money is actively working for you, not the other way around. So, in this very moment, set those clear financial goals. Whether it’s saving for that dream vacation, building up an emergency fund, or diving into long-term investments, it’s all happening.
Practice budgeting, allocate your income wisely, distinguishing between needs and wants. It’s not about restriction; it’s about making your money work strategically for you. And when that urge to splurge hits, pause. Ask yourself, does it align with your goals? It’s like having a personal financial coach right at your fingertips.
Create a spending plan, track your expenses, and steer clear of unnecessary debt – it’s all part of your self-control toolkit, unfolding in real-time. Remember, this isn’t about saying “no” to everything; it’s about making intentional choices that sync up with your financial vision.
Step 8: Save for a rainy day
Have you heard about the 50-30-20 rule? It’s a practical financial guideline suggesting that you allocate 50% of your income to needs, 30% to wants and the remaining 20% to savings for a well-rounded and sustainable financial plan.
Saving for a rainy day is like having an umbrella for life’s unexpected storms, whether short-term drizzles or long-term downpours. Start by building an emergency fund, stashing away a portion of your income into a separate savings account. This fund will act as your financial safety net, covering unforeseen expenses without disrupting your overall financial plan.
For short-term goals, like a vacation or a new gadget, create a specific savings goal and allocate a portion of your income towards it.
Consider automated transfers to your savings account to ensure consistency.
For long-term savings, such as retirement or buying a home, explore investment options that align with your risk tolerance and financial objectives. The key is to make saving a habit, no matter the scale, and watch those rainy-day funds grow, ready to weather any financial storm that comes your way.
Step 9: Invest in an informed manner
At this point, you must be on the lookout for an investment opportunity that not only aligns with your financial goals but also sparks excitement and potential growth.
- Start with joining a Sacco, a member-based financial service institutionwhere you make money in three exciting ways
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- Share Capital: By being a member of a Sacco, you are a shareholder. You earn a dividend for every share you buy after every financial year.
- Interest on Deposits: Think of this as the interest your savings earn – a bonus for simply letting your money hang out in the Sacco. It’s like giving your funds a chance to work and grow while you sit back.
- Loans with Friendlier Rates: Need a financial boost? Saccos offer loans with friendlier rates, like having a supportive friend willing to lend a hand.
- Another way to invest is by signing up for an investment-linked life insurance, which offers you the opportunity to earn superior returns and enjoy life insurance at the same time.
- You should also consider Government Bonds as another go-to investment option. It entails loaning money to the government for a period of time in return for an agreed rate of interest.Governments use them to raise funds that can be spent on new projects or infrastructure, and investors can use them to get a set return paid at regular intervals
In Kenya, there are two primary types of government investments available: Treasury Bills and Treasury Bonds. As a law-abiding citizen above the age of 18, you are eligible to participate in these investment opportunities.
- Treasury Bills (T-Bills): These are short-term investments with a maturity of less than one year. In Kenya, T-Bills are available in three durations: three months, six months, and one year.
- Treasury Bonds: Bonds have a longer maturity period, typically exceeding one year. Benchmark bonds in Kenya include durations of 2 years, 5 years, 10 years, 15 years, 20 years, and 25 years.
Related: How to Make Money Buying Treasury Bonds in Kenya 2024
Step 10: Live a healthy lifestyle
One thing to remember is that balancing the demands of making a living with a healthy lifestyle is not only achievable but essential for long-term success. Effective time management is key, ensuring a harmonious distribution of work, personal time, and rest.
Prioritize regular exercise by choose activities that bring you joy and incorporate short, invigorating sessions during breaks. Eat nutritious meals. Establish a consistent sleep schedule, implement stress management techniques, and stay hydrated, this will really contribute to your overall well-being.
Set clear boundaries between work and personal life, learn to say no when needed. Embrace technology detox moments, disconnect to foster a healthier work-life balance. Cultivate social connections and schedule regular health check-ups to proactively manage your well-being. In essence, integrating these practices forms the foundation for not only a prosperous professional journey but a fulfilling and healthy life.
Step 11: Stay Rich
Staying financially prosperous involves a continuous commitment to personal and professional development.
A key strategy is acquiring new skills relevant to your field and staying up-to-date with industry trends. Attend workshops, webinars, and conferences to enhance your knowledge and expertise.
Embrace a growth mindset, actively seeking opportunities to expand your skill set and adapt to changing demands. Networking with professionals in your industry fosters valuable connections and insights.
Additionally, diversify your investments wisely to build and protect wealth. Staying rich isn’t just about accumulating assets; it’s about evolving alongside the dynamic landscape of your chosen field. Constantly refining your skills, staying informed, and nurturing a proactive approach to personal and professional growth form the blueprint for a sustained and thriving financial journey.
Step 12: Find A Successful Mentor
Finding a successful mentor involves navigating the professional landscape with intention and openness. Start by identifying individuals whose career paths align with your goals.
Attend industry events, networking functions, or even reach out through professional platforms to connect with potential mentors. Be genuine in expressing your admiration for their work and seek advice on your own professional journey.
Demonstrating a willingness to learn and a genuine appreciation for their insights can make you an appealing mentee. Read books that will guide you to become Rich in Kenya. Don’t limit your search to just your industry; mentors can provide valuable perspectives from diverse backgrounds.
Remember, a successful mentorship is a two-way street, requiring active engagement, mutual respect, and a commitment to personal and professional growth.
Final Thoughts
By now it should be clear that the above steps are not get-rich-quick schemes. For you to become rich in Kenya, you need to practice patience and perseverance. Make an investment in yourself, and start working towards a secure, financially strong and independent you.
Remember, the journey to wealth is as much about the process as it is about the destination.
