Where To Invest Money In Kenya? Best Investment Options
The best investment options for Kenyans are:
Real estate - high demand for real estate in Kenya
Cryptocurrencies - high growth potential with high liquidity
Precious metals - protection against inflation
High-yield saving accounts - provide security with moderate return
Copy trading - good option for copying successful traders
Securities - provide opportunities for long-term growth
One of the most important ways to grow your money is by investing, and Kenyans have access to a variety of investment options in the nation’s current financial market, ranging from safe, low-return assets to riskier, higher-return options. To make an informed choice, you will need to compare and examine the advantages and disadvantages associated with each investment option. To assist you in making wise investment choices in Kenya, the Traders Union's experts have reviewed the top investment options for you in this article.
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Which investment is best in Kenya?
The best investment in Kenya depends on your financial goals and risk tolerance. Some popular options are government bonds, real estate, and stocks. Beginners may find options such as high-yield savings accounts and copy trading very appealing.
Investments in cryptocurrency
In Kenya, investing in cryptocurrency offers you a world of exciting opportunities to make money and increase your wealth. With cryptocurrency trading, you can actively earn extra cash by buying and selling digital coins. The fact that over $20 billion (KES 3 trillion) in cryptocurrency transactions have occurred in Kenya indicates that the country has a sizable cryptocurrency market, which is currently taxed under the Finance Act of 2023. Aside from cryptocurrency trading, you have the option to use your coins for staking, a process where you lock them in a wallet to support the operations of a blockchain network, earning rewards in return. Kenyan investors considering cryptocurrency as a long-term investment can potentially yield significant returns. This investment option, however, has advantages and disadvantages, and understanding these advantages and disadvantages is critical for making informed decisions when investing in cryptocurrency in Kenya.
Best crypto exchanges in Kenya
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Bybit
While Bybit is a relatively new crypto exchange platform, it's managed to gain significant market share since its launch in 2018. The platform is based in Singapore and currently serves people from all over the world, with an estimated 10 million users in 160 countries. Currently, the platform supports trading on 338 coins, including BTC, ETH, XRP, and EOS. Its average liquidity score is 567.
Bybit’s 24-hour trading volume is $291,357,292.The platform provides several features that help traders manage their risks, such as margin trading, hedging, and stop-limit orders. The platform is also known for its excellent customer service, with support staff available 24/7 to answer users' questions or concerns.
Pros and Cons
👍 Pros
• Profitable trading. Cryptocurrency trading can be very profitable, providing opportunities to profit from market fluctuations.
• Staking rewards. Using your coins for staking not only supports blockchain networks but also allows you to earn additional coins over time.
👎 Cons
• Market volatility. Cryptocurrency values can be highly volatile, posing a risk of rapid and unpredictable price changes that can lead to losses.
• Regulatory uncertainty. The regulatory environment for cryptocurrencies in Kenya is still evolving, which may introduce uncertainties and potential changes in the future.
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Binance
Binance is the world's largest crypto exchange by trading volume, currently at $8,405,850,336. Founded in 2017, Binance was created with the idea of providing crypto traders and users with a secure platform optimized for their needs. By offering advanced order types, unparalleled liquidity, and a world-class matching engine, Binance has quickly become the go-to crypto exchange for many crypto enthusiasts.
Binance currently supports over 383 coins. Traders have access to 1661 markets, including crypto-pairings with fiat currencies such as the US dollar, Euro, and Japanese Yen. Also, Binance offers margin trading and futures trading services for users who want to maximize their crypto exposure.
Another reason Binance sits at the top of crypto exchange ranking lists is due to its high liquidity score of 935 and its robust security measures. Binance also provides a crypto wallet, crypto lending services, and a crypto savings account that allows users to save up their crypto assets in a secure manner. As of 2023, Binance receives over 15 million weekly visits.
Investments in securities
Investing money in Kenya, especially on the Nairobi Securities Exchange (NSE), is a great opportunity to make more money. To be successful, investors need to decide how much risk they're comfortable with. Some people like to trade for a short time to make quick profits, while others prefer a stable, long-term approach by earning money through dividend stocks. Investing in dividend stocks and getting a share of a company's profits can provide a steady income each year. If you don't want to take many risks, you can choose to invest in government bonds, which can also give you a secure 8-10% annual interest rate.
Bonds are debt securities that represent a loan made by an investor to a borrower. Purchasing a bond is essentially lending money to the issuer, which could be a company, government, or another organization, in return for regular interest payments and the principal amount being returned when the bond matures. Some examples, like Treasury bills (T-bills) and Treasury bonds (T-bonds), are good for making money over a long time. Another security investment option is Exchange-Traded Funds (ETFs). ETFs help you spread your money across different types of assets, reducing the risk of losing everything in one investment. Bonds and ETFs are considered relatively safer security investments compared to stocks, but they still carry risks as well. Here are some of the pros and cons of investing in securities in Kenya.
👍 Pros
• Diversification. Investing in securities in Kenya allows you to diversify your investment portfolio. You can invest in various asset classes, such as stocks, bonds, and ETFs, spreading your risk across different sectors of the economy.
• Bonds backed by the government. Government bonds, such as T-bills and T-bonds, offer a safe investment with guaranteed interest rates that can provide a source of income for investors.
👎 Cons
• Uncertainty in the markets. Because the stock market is unpredictable, there are risks involved, especially for traders who trade for short periods of time.
• Less diversification. While ETFs provide diversification, investors may miss out on potentially high returns from other individual stocks, leaving potential growth opportunities out of reach for ETF investors.
Investments in real estate
Kenya presents a favourable opportunity for real estate investments, as the country's real estate market is expanding significantly due to factors like urban migration, population growth, and strong infrastructure development. Kenya's real estate market is expected to be worth 678.20 billion US dollars by the end of 2023. In the second quarter of 2023, Kenya's real estate sector proudly claimed the third-largest contributor to the country's GDP, boasting an impressive 8.3%. Real estate does not only provide the opportunity for rental income, but it also allows investors to profit from property value appreciation, whether residential, commercial, or industrial. A better option is to invest in Real Estate Investment Trusts (REITs), which are businesses that either own or finance real estate across a variety of property sectors that generate income. There are several REITs in Kenya, one of which is Vuka, owned by Acorn Group.
👍 Pros
• Diverse investment options. Kenya's real estate market offers a diverse range of investment opportunities, including residential, commercial, and industrial properties.
• Steady income streams. Urban areas in Kenya stand out as areas of interest for real estate investments. Rental properties in these locations can provide a reliable and steady income stream.
• Potential for appreciation. Real estate has the potential to appreciate over time, meaning the value of the property can increase. Investors may benefit from selling the property at a higher value than the initial investment.
👎 Cons
• High starting capital. Some investors will find it more difficult to get started in real estate investing because it usually requires a large starting capital investment.
• The market is volatile and risky. Despite how promising it looks to invest in Kenya’s real estate market, changes in government policies and unforeseen natural disaster events can impact property values and returns.
Investments in precious metals
Investing in precious metals like gold and silver opens up various avenues for individuals looking to diversify their portfolios in Kenya. Gold, recognized for its enduring qualities, stands out as the most renowned precious metal. Its historical role as a store of value makes it a sought-after asset during economic and political uncertainties, serving as a hedge against inflation. Gold’s value has risen over 15% since the beginning of the year. Gold investments can take various forms, ranging from physical possession of gold bars, coins, or jewelry to financial instruments such as gold stocks, exchange-traded funds (ETFs), and mutual funds. Silver, which is the second-most-common precious metal, possesses unique attributes that contribute to its dual role as an industrial metal and store of value. During periods of high demand, silver prices can outperform gold, making it an interesting option for those seeking potential returns. Its value has increased by over 10% this year. Investing in precious metals, however, comes with its own set of pros and cons:
👍 Pros
• Store of value. Precious metals, including gold and silver, have long served as stores of value, offering a potential hedge against economic downturns and inflation.
• Diversification. Precious metals provide diversification benefits, helping to spread risk in an investment portfolio beyond traditional assets like stocks and bonds.
• Industrial demand. The industrial applications of precious metals, especially silver, contribute to their economic value, creating a unique investment market influenced by both industrial and investor demand.
👎 Cons
• Volatility. Precious metals, particularly silver, can be more volatile than traditional assets. Fluctuations in prices, influenced by factors like industrial demand, can impact the value of investments.
• Lack of steady income. Unlike some investments that generate income, such as dividend-paying stocks or rental properties, precious metals do not typically provide regular cash flow. Their value is primarily tied to market demand and scarcity.
High-yield savings accounts
Similar to traditional savings accounts, high-yield savings accounts in Kenya present a profitable investment opportunity for people looking to make significant returns on their savings. These accounts stand out due to their competitive interest rates and operate on the basis of offering higher yields following a predetermined period. Unlike traditional savings accounts, which have interest rates ranging from 4% to 7%, high-yield savings accounts have higher earning potential, with rates ranging from 10% to 13%. This presents a strong alternative for individuals looking to invest their money profitably without taking on riskier bets. Examples of banks that provide high-yield savings accounts are Citibank and KCB Bank. Additionally, fintech companies like Koa present high-yield accounts with returns of up to 10%. When considering this investment option, make sure your savings interest rate is at least higher than inflation by monitoring the interest you receive on your savings. If not, the value of your savings will decrease over time.
👍 Pros
• Impressive interest rates. High-yield savings accounts provide an attractive alternative to traditional savings accounts by offering higher interest rates.
• Simple to invest. This investment option is straightforward because, since banks are the main providers of high-yield savings accounts, a large number of Kenyans can easily obtain them.
👎 Cons
• Inflation concerns. While the interest rates offered are higher, they may not always outpace the rate of inflation, potentially leading to a reduction in the purchasing power of your savings over time.
• Maturity restrictions. High-yield savings accounts often come with maturity dates. Investors are not allowed to withdraw funds until the specified maturity date.
Copy trading (investing in successful traders)
Copy trading is a great way to invest in successful traders and make a profit when they do. It is the best option for Kenyan investors who do not want to waste time and effort learning how to trade the financial markets on their own. This method of investment enables you to benefit from the knowledge and skills of successful traders for a small fee, and there are a lot of copy trading platforms available to Kenyans. Some examples of these copy trading platforms are Exness and RoboForex’s CopyFX. Here’s a step-by-step guide on how you can get started:
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Choose a reliable copy trading platform. Begin by selecting a reputable copy trading platform. Ensure the platform is regulated, aligns with your investment goals, and offers a user-friendly interface. Sign up and proceed to the next step.
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Fund your account. Once you've chosen a platform, after signing up, fund your account. Ensure your account has the necessary capital to start copying traders.
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Explore and select traders to copy. Explore the list of available traders on the platform after funding your account. Consider factors such as their rading strategy, risk tolerance, and historical performance.
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Allocate funds to your selected trader. Allocate a portion of your funds to copy the traders you have chosen.
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Monitor and adjust. Keep an eye on the traders you are copying on a regular basis. Evaluate their strategy and make any necessary portfolio adjustments. You can copy several profitable traders to diversify your portfolio if you want.
👍 Pros
• Access to experience. Copy trading allows investors, even those with limited knowledge of the financial markets, to benefit from the knowledge of successful traders.
• Time-saving. The need for in-depth market research and analysis is eliminated with copy trading.
👎 Cons
• Risk of losing your money. While copy trading offers the potential for gains, it also exposes investors to the risk of losses because the success of your investment is tied to the performance of the traders you choose to copy.
• Too much dependence on trader strategies. Investors rely heavily on the strategies of the traders they copy.
Where to invest in Kenya for a beginner?
If you're new to investing in Kenya and don't have much money or investment knowledge, consider copy trading. It's like copying the moves of experienced investors, meaning you don't need to be an expert. With a small amount of money, you can follow successful traders automatically, and you can learn from them. While it's not risk-free, copy trading can be a simpler way for beginners to dip their toes into investing. A high-yield savings account is another beginner-friendly investment option. It’s great for those with a cautious approach and small start-up capital. High-yield savings accounts provide competitive interest rates and a low-risk way for beginners to earn returns on their savings.
How to choose the best investments in Kenya
Pay attention to the criteria listed by TU experts below so you can select the best investment option for a successful investment journey in Kenya.
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Define your financial goals. Before choosing investments in Kenya, clearly define your financial goals. Consider whether you are investing for short-term or long-term goals.
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Assess your risk tolerance. Assess how comfortable you are with the possibility of market fluctuations and potential losses. If you have a higher risk tolerance, you may be more open to volatile but potentially higher-returning investments. On the other hand, if you have a lower risk tolerance, you might prefer more stable, conservative investments.
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Understand the available investment options. Take your time to understand the different investment options available in Kenya because each investment type comes with its own risk and return profile. Educate yourself on the characteristics and performance history of each investment option before making decisions.
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Stay informed about economic trends. Keep yourself informed about the economic trends in Kenya and globally. Understand how inflation, interest rates, and geopolitical events can impact different investment options. Staying informed enables you to make informed decisions, adjust your portfolio as needed, and anticipate potential changes in the financial landscape.
Where to invest in Forex: the best brokers in Kenya
RoboForex
RoboForex is the best option for forex traders in Kenya, whether they are just entering the market or have been trading for a while. With an impressive 40 currency pairs to trade with, forex traders have plenty of opportunities to devise a sound trading strategy.
It offers tight spreads starting from 0 pips and leverage of up to 1:2000. Besides foreign currencies, it also offers other trading instruments, including indices, stocks, and cryptocurrency. As for the trading platform, you have plenty of choices, including MT4, MT5, cTrader, and R WebTrader, and R Mobile Trader, which are their proprietary trading platform. The minimum deposit is just $10. More importantly, it offers a demo account in USD and JPY. There is no commission on deposits, and Kenyan residents can deposit amounts in their accounts via credit/debit card. Also, withdrawals are almost instant, with most withdrawal options having no limit.
While the CMA in Kenya doesn’t authorize RoboForex, it is regulated by the International Financial Services Commission (IFSC) in Belize. It is also regulated by Cypress Securities and Exchange Commission (CySEC).
There are multiple account options, including cent accounts, ECN accounts, and Islamic accounts.
Its proprietary R WebTrader and R Mobile Trader terminals have 13 technical indicators and nine tools for graphic analysis. Plus, you also get expert analysis.
IC Markets
IC Markets is the biggest Forex broker by trading volume, it has one of the lowest spreads from 0.1 pips and the lowest fees starts from $3 per lot on the market. Because of its cutting-edge technology, direct access to liquidity, high trade volume, and absence of a dealing desk, the broker is able to provide tight spreads.
For more than ten years, IC Markets Trading Company has been active in the forex market. The broker wants to give its clients the best possible market conditions, and in order to do so, they are constantly improving their tools and technology to give traders the most accurate analytical tools, updated trading platforms, and the best possible connection.
The Financial Services Authority of Seychelles, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission all oversee IC Markets Global.
Exness
Exness is another great option for online forex trading in Kenya. It’s based in Seychelles and is regulated by CySEC FCA, and SFSA. For those looking for ECN trading, its Standard ECN account is the right choice.
For Standard accounts, the minimum deposit is just $1, whereas, for the pro account, it’s $200. It offers leverage from 1:100 to 1:2000. And the spread varies from 0.1 to 0.3 pips depending on the account type.
It’s worth mentioning that Exness is one of the highest-ranked forex trading platforms, reassuring that it’s a safe platform. You can trade on MT4, MT5, multiterminal, and mobile platforms.
With execution as fast as 0.1 seconds and withdrawals deposited in your account within 24 hours, it’s favourable for international clients who often have to wait days for their withdrawals.
Another great thing about using Exness in Kenya is that you can deposit using your MPesa account.
How to make money in Kenya without investment?
Kenyans do not need to make any initial investments in order to make money. TU experts have highlighted some options for you below.
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Forex affiliate programs. Engaging in forex affiliate programs is a way to make money in Nigeria without making an initial investment. This involves promoting the broker's services through various means, such as online marketing, social media, or content creation. As clients are referred through your affiliate link trade on the platform, you earn a commission based on their trading activities.
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No-deposit bonuses. Some forex brokers provide no-deposit bonuses as a promotional strategy to attract new traders. With a no-deposit bonus, individuals can start trading on the platform without depositing their own money.
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Online surveys and microtasks. Participating in online surveys and microtasks is a simple way to earn money without investing. Several websites and apps pay users to complete surveys, watch videos, or perform small online tasks.
While these options may allow you to earn money without making an initial investment, TU experts advise that you approach them with realistic expectations.
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Team that worked on the article
Winnifred Emmanuel is a freelance financial analyst and writer with years of experience in working with financial websites and businesses. Her expertise spans various areas, including commodities, Forex, stocks, and cryptocurrency. Winnifred tailors her writing to various audiences, including beginners, while also providing useful insights for those who are already familiar with financial markets.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).