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Benjamin Cheruiyot, an investment advisor at Abojani Investments, has shared practical investment ideas for low-income earners looking to build wealth.
In a past X post, Cheruiyot revealed that while the investment journey is not easy, any goal is doable with dedication, discipline, and sacrifice.
According to him, one would need to invest about Sh10,000 per month at a 13 percent annual return to build an investment portfolio worth Sh1 million in six years.
“Building a portfolio that generates Sh100,000 a year in dividends and interests does not happen overnight. It takes a few years of dedicated focus. You lie low for the first few years to build the base; then it starts to take off,” he stated.
“In 6 years, you’d need about Sh10,000 invested monthly at 13 percent annual return to build a Sh1M portfolio. Your family and friends may not understand your mission, vision, sacrifices, and goals. Building wealth isn’t for everyone; never has been, never will be,” he added.
Speaking exclusively to a local daily, Cheruiyot shared some investment options where Kenyans can invest their money to achieve such goals:
Bond funds
Cheruiyot advised Kenyans looking for steady returns with minimal volatility to go for bonds. He explained that leading insurance companies and investment banks allow investments with as low as Sh1,000 and earn annual interest rates of over 13 percent.
“Bond funds provide a stable way to grow wealth over time without the fluctuations associated with some other forms of investment,” he told Tuko.
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Dividend stocks
According to Cheruiyot, dividends are one of the best long-term investment strategies. He explains that with a minimum of Sh2,000 monthly, investors can buy 100 shares regularly and accumulate a significant portfolio over time.
For example, purchasing Co-op Bank shares for a year could cost less than Sh20,000 (including brokerage fees) and yield dividends of about Sh1,800, assuming the bank retains its Sh1.50 per share dividend.
“You can invest less than Sh2,000 monthly if targeting quality dividend stocks like ABSA and Co-op banks. With these trading at Sh17 and Sh15, respectively, you can buy a minimum of 100 shares of either every month, or whenever you have spare cash. In a year, you will have 1200 shares at less than Sh20,000 for Co-op (inclusive of brokerage commissions); assuming the share price doesn’t change much. This will earn you Sh1,800 dividend, assuming Co-op retains Sh1.50 dividend,” he explained.
Money Market Funds (MMF)
Cheruiyot advised Kenyans looking for an emergency fund to go for MMFs due to their flexibility. He explained that some MMFs allow investments of as low as Sh100. A good example is the Safaricom Ziidi MMF which allows users to invest as low as Sh100.
“MMF is highly recommended for an emergency fund or a sinking fund where you target an expense like accumulating school fees a few months away, or saving for vacation in Zanzibar in December 2025. The beauty of MMF is that while you save, you enjoy daily or monthly interest credits, and you can access it any time,” he said.
