How to invest 200k in Kenya: Let’s say you have Sh. 200,000 on the side. How do you invest it profitably? Is there a venture you can start?

Well, this Question & Answer feature published with permission by Kyrgitt Kalya tells you how you can make Sh. 1 million from an investment of Sh. 200,000 on the side:

Question from Kim:

I recently withdrew some savings I had in a sacco yenye iko na issues. I have 200k in cash lakini I know I’ll spend yote before Xmas. Please help me figure out a way I can grow it to double ndio nisiregret. Someone introduced me to a new group where you deposit money and once you refer few friends with payslips they pay you 50,% of your deposit alafu every month 15% of your deposit while pesa yako iko. Is it a good idea? I work kwa kampuni ya machinku but hapa inakuanga 50-50… I want to grow hii doh at least to have a million in 5 years but passively.”

Rentals vs dairy farming: See which will make money if started with a loan

Answer from Kalya:

“Yes, it’s easy to blow money overnight especially since December is around the corner. I’ve been a culprit before, so I know.

I’ll go straight to the point.

Please don’t be foolish to listen to your friend. That new scheme sounds like a classic Ponzi and we don’t want you and Trump to cry at the same time. It doesn’t make any economic sense and it sounds like a scheme concocted by a quack.

Listen.

Retire your ego.

There are many ways to passively grow money, but on Flipside, I try to focus on the less obvious plans.

Go to a farmer in Narok and purchase 2 young zebu bulls for less than 20k. Remember, YOUNG. A fully grown Zebu will cost you almost 80-100k. Some go up to 150k.

Now, within Narok or it’s environs, lease an acre of land at 10k a year or less. Lease for at least 5 years.

Paddock 3/4 of an acre and build a zero grazing unit on the remaining quarter. This is not a milk cow, this is a beef bull. So your shed shouldn’t be complicated to build. You don’t need concrete floors nor expensive structures.

This is just a feeding shed. Buy a water trough and buy a small tank which you can collect rainwater with now that the rains are still here.

Buy hay from the local suppliers at 200 bob a bale. While feeding them in hay and napier, go and buy Boma Rhodes grass seeds from your local agrovet, and after tilling your 3/4 acre at about 3k per point of an acre, plant the Boma rhode grass.

With rains, the grass will sprout in 2 months.

Feed the two bulls with hay, silage, salts and give them enough water. Hire a herdsman who will water and watch them for you. A local is the best bet. They are good with cattle. He will also double up as your security though Narok is very farmer secure.

By close of year, your bulls will have good weight.

In about two years of lease, your bulls are now of adult weight.

Remember you have grasses that you keep cutting as they grow. Your feeding costs are manageable.

A fully grown Zebu bull weighs about 400KG.

Now, sell the bulls as beef at 250/- per kilo slaughter house price.

That’s 800KG. This translates to 200K profit.

Now, if you have an extra source of income to lease, feed, and maintain the bulls you can buy 10 bulls with the 200k you have. That’s 4000kg of beef.

In 2 years or thereabouts, you have ksh 1,000,000.

Reinvest 500k into the business and in another 2years, you’ll have 25 full bulls which translates to beef worth 2.5M.

So in your 5 yrs… You have a potential of making good progress with your money. Almost 3M.

As I always say, this is about flipping your mindset. There are tiny dynamics to consider, however, this guides you on how to start. I have someone I can introduce you to, who makes 5m a year on this Hustle.

Advisory: I’m just opening up your mind on what you can do to grow your capital. These numbers are dynamic and subject to circumstance.”