How to invest 500 000 in Kenya


Assuming that you have Ksh 500,000 in in Kenya, how do you invest this money? Well, there are many investments you can make with the cash and turn around your life. Below we are going to inform you of the things to do with Ksh 500,000 that will generate handsome profits for you.

  • Buy a car for online taxi business

Invest in online taxi business, buy a car with Ksh 400,000 to Ksh 450,000 and start operating online taxi business like Uber and Bolt. This business will start generating profits for you instantly.

A taxi will generate for you Ksh 500 to Ksh 5,000 daily.

  • Invest in Money Market

Money Market is one of the best investments to make when you don’t have anything urgent to do with the Ksh 500,000.The money will generate more than Ksh 6,000 monthly.

The beauty of money market is that it allows you to withdraw your money anytime.

  • Start a chemist

Put up a chemist in a crowded area like Eastleigh, Pipeline, Kilimani, Rongai or Kitengela.There Ksh500,000 investment is enough to yield up to Ksh30,000 per day.

Chemist is one of the most profitable businesses to do in Kenya.

In case you don’t have a license to set up a chemist, you can collaborate with someone with the qualifications, or simply employ someone qualified to do the business for you.

  • Start wines and spirits business

Wines and spirits business require a capital of Ksh200,000 to Ksh 500,000.The returns range between Ksh3,000 and Ksh20,000 per day depending on location and how well you manage the business.

Though police may harass you at first, if you know how to maneuver, you will eventually make it.

  • Save the money in fixed deposit account

If you have earned the money from somewhere and you don’t have immediate plan on how to invest it, open a fixed deposit account and save it there. It will earn over Ksh 40,000 per year as interest. You will then withdraw the cash and start a profitable business.

  • Build single rooms

Ksh 500,000 is enough to build 3 single rooms in a 50 by 100 plot. The plot can accommodate 12 single rooms, but you will start with 3 single rooms. You will use rent collected from those houses to build more single rooms.

  • Buy a plot

A plot you’ll buy for Ksh 500,000 now will cost more than Ksh 3 million in 5 years’ time. Instead of buying a personal car,buy a plot in areas like Kiserian,Ruiru,Thika,Joska,Nakuru or Ngong where you are sure they are growing. The plot should be for speculation.

  • Set up butchery business

Butchery business is very profitable especially in Nairobi. Set up this business with Ksh 250,000.You will incorporate MPESA shop and bank agency business. The Ksh 500,000 capital will generate over Ksh 3,000 daily.

  • Fast food restaurant

Another good investment is to set up fast food restaurant. You should target areas like colleges and universities where students are many. If you get more money, set up the business in Nairobi CBD

Fast food restaurant is more profitable in major cities than small towns. Always target places like Nairobi and Mombasa.

  • Restaurant business

Restaurant business is also a worthy investment. The Ksh 500,000 is enough to set up a business that will generate over Ksh 2,000 daily. People have to eat food no matter what, which is why restaurant business is one of the most ideal businesses to start with Ksh 500,000

  • Boda boda spare part business

You should also think of boda boda business. First, set up boda boda spare part business, then later buy your own boda boda for deliveries.

  • Start recruitment agency

Start a recruitment agency for gulf employers. You need a capital of Ksh500, 000 to Ksh 1 million to set up the business and you will be earning at least Ksh500, 000 monthly.

This is a very lucrative business at the moment which can easily make you a millionaire. One client will generate for you Ksh40, 000 to Ksh 60,000.If you get 20 clients per month, you will make over Ksh800, 000 monthly

  • Join a Sacco and buy shares

Saccos offer the best investment solution to Kenyans. With Ksh 500, 000, you will join a Sacco, invest in their shares and earn dividends of over Ksh 70,000 annually.Saccos also offer the option of taking loans for investments. You can also get things like land. There are many Saccos which buy land and sell to their members cheaply.

  • Invest in bonds

If you need long term investment, invest in bonds. You will get interest of up to 20% per year on your investment. If Ksh 500,000 is invested in bonds and maturity is after 5 years,you will be able to make over Ksh 300,000 profit. This is a better investment compared to starting a business which you don’t have an idea how to run it.

  • Car wash business

Start a business of car wash in major towns. Buying equipment and setting up a decent place for car wash will cost you Ksh 500,000.The profits from this business will be amazing.

  • Farming

There are many things you can do with Ksh 500,000 especially regarding to farming. You can keep kienyeji chicken, grow hass avocado, grow watermelon, tomatoes, cabbage, spinach etc.All you need is to lease land of more than 2 acres and do your farming there.

You can also keep dairy cows. The Ksh 500,000 will buy 3 high quality grade cows.

  • Airbnb business

Airbnb business is also profitable, it’s one of the trending businesses in Kenya at the moment. You need at least Ksh 50,000 to start this business. High end Airbnb business may require capital of more than Ksh 400,000.


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