How to Start Investing in Your 20s in Kenya: A Simple Guide for Beginners
How to Start Investing in Your 20s in Kenya: A Simple Guide for Beginners
Most people in their 20s are told to save. Few are taught how to invest.
Yet investing is how you build wealth. Not by working harder—but by making your money work for you.
Whether you’ve just finished school, landed your first job, or started freelancing—this is the perfect time to begin investing.
And no—you don’t need a six-figure salary to start. You just need clarity, consistency, and patience.
Here’s your beginner’s guide to starting your investment journey in Kenya in your 20s.
1. Understand the Difference Between Saving and Investing
- Saving is keeping money aside for short-term needs or emergencies
- Investing is putting your money in vehicles that can grow over time
Savings protect you.
Investments build you.
2. Start with a Clear Goal
Before you choose where to invest, ask yourself:
- Do I want to buy land in 5 years?
- Do I want to build passive income?
- Am I investing for retirement or financial freedom?
Your goals will shape your strategy.
3. Build a Safety Net First
You can’t invest confidently if you’re constantly stressed about emergencies.
Start by:
- Saving 3–6 months of your expenses in an emergency fund
- Keeping this money in a money market fund or fixed savings account
- Avoiding dipping into it for “non-emergencies” like concert tickets or new phones
4. Start Small: Use Money Market Funds (MMFs)
These are low-risk investment options that give 10–11% annual returns.
✅ Accessible via apps like Safaricom Mali, Etica, or Arvocap
✅ Daily interest
✅ Easy deposits and withdrawals via M-PESA
Great for building consistency and discipline.
5. Explore Government Bonds
Government bonds (like Treasury Bills or Infrastructure Bonds) are stable and ideal for long-term investing.
✅ Backed by the government
✅ Pay fixed interest (e.g. 13–17%)
✅ Start with as low as KES 3,000 via CBK or platforms like DhowCSD
Perfect if you want to grow money safely over time.
6. Avoid High-Risk “Get-Rich-Quick” Scams
You’ll be tempted by Forex DMs, fake crypto gurus, and random apps promising 50% ROI in a week.
Here’s the truth:
If it sounds too good to be true—it is.
Stick to regulated, understandable investments you can explain to a 10-year-old.
7. Learn About Real Estate the Smart Way
Real estate can be powerful—but don’t rush into buying land or building in your 20s with no income plan.
Instead:
- Start with REITs (Real Estate Investment Trusts) via Nairobi Securities Exchange
- Learn about land flipping or Airbnb hosting
- Collaborate with others before going solo
We’ll be exploring more in upcoming blogs on Mali Moves—our money and property series.
8. Invest in Yourself (High ROI Guaranteed)
The highest returns in your 20s come from skills and knowledge.
✅ Learn web design, AI tools, SEO, freelancing
✅ Take courses, attend workshops, read books
✅ Learn how to market yourself and create digital income
Explore: Courses by Elvis W – Learn & Earn from Anywhere
And read: Skill Up or Stay Stuck – The Ebook
9. Automate & Track Your Investments
Use apps like:
- Chumz – for auto-saving & investing
- Etica – for MMFs and SACCOs
- Google Sheets or Notion – for manual tracking
Don’t “guess” your progress. Track it.
10. Be Patient. Compound Interest Needs Time.
The best thing about starting in your 20s? Time.
If you invest KES 5,000/month in a money market fund for 10 years, you could grow it to over KES 800,000.
Now imagine if you add skills, better income, and higher-risk assets later?
You’re unstoppable.
Final Thoughts
Investing in your 20s isn’t about being rich.
It’s about being smart early—so you can have options later.
Start small. Be consistent. Learn along the way.
And remember:
📉 A bad purchase will always cost more than a good investment.
Call to Action
Want to learn how to build income before you invest?
✅ Download the practical guide: Skill Up or Stay Stuck – Ebook
✅ Join over 1,000 students building skills that pay: Explore My Courses
✅ Need personalized help? Contact Tera Creations for digital skills training and business support.
