How to save Ksh1 million in Kenya when your monthly salary is Ksh50, 000-Ksh100, 000


In Kenya it’s possible to save Ksh1 million when your monthly salary is Ksh 50,000-Ksh 100,000.But before you start saving you have to quit or reduce the intake of alcohol, avoid having expensive girlfriends—if possible have only one girlfriend/wife. You should also live within your means. With a salary of Ksh 50,000per month, your monthly rent should not exceed Ksh12, 000.If you are earning Ksh100, 000, your rent should not be above Ksh 18,000.

Saving is difficult unless you develop discipline. As you plan to save, identify which methods you wish to use, where the money will earn interest. Below are some of the best places to save the money:

  1. Saccos
  2. Money market
  3. Fixed Deposit Account

Those three are the best, but I strongly prefer money market. In Kenya, the Money Market Fund earns daily interest. If you save Ksh1 million, you are assured of Ksh10,000 to Ksh 20,000 monthly as interest.Saccos also earn dividends, that is if you buy shares with your savings. Fixed Deposit savings also earn interest of 3% and above.

For those earning Ksh 50,000 per month you will spend Ksh10, 000 on rent, Ksh 10,000 on shopping, Ksh 7,000 on transport, Ksh 3,000 miscellaneous and Ksh 10,000 on food. You will remain with Ksh10, 000 to save. Per year you will save Ksh 120,000 and in 9 years you’ll save Ksh 1 million. For those 9 years you will earn interest of above Ksh200, 000.

If your salary is Ksh100, 000, you will pay rent of Ksh 15,000 per month, spend Ksh 20,000 on food and shopping, Ksh 25,000 on transport and miscellaneous. You will remain with Ksh 40,000 to save. We are assuming that the money earned is after tax.

Saving Ksh 40,000 will amount to Ksh 480,000 per year. You will need approximately two and half years to save Ksh 1 million. If you save the money in a Sacco, you’ll be eligible to take a loan of up to Ksh 4 million which you can use to buy land and build your own home. Money Market Fund will earn you interest of Ksh 10,000 to Ksh 20,000 monthly if your money was saved in the fund.

With Ksh1 million, you can build a two bedroom house in the village. Alternatively, you can buy a piece of land in Kitengela, Ngong or Joska.You can also start a profitable business like hotel.

But the most important thing is to quit life destructive habits like drinking. You should also avoid being too good to people such that you give them all your money and remain with nothing.


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