Many people believe that a higher salary is the ticket to financial freedom. However, the story of a 33-year-old senior software consultant earning Sh 623,400 per month paints a different picture, one where a seemingly enviable income is not enough to stay afloat financially.
According to personal finance expert Jane Ndichu, who recently highlighted the case in a LinkedIn post, the consultant found himself with a monthly budget deficit of Sh 10,000 despite his six-figure earnings. Conspicuous in the budget was a Sh 200,000 allocation for blacktax.
Black tax refers to the financial support one extends to family members, often siblings or parents, especially common in African households. In this case, the man allocates KSh 200,000 every month to family obligations, on top of a separate Sh 50,000 reserved for charity and tithe.
I pay my househelp Sh15000, she takes Sh9k to church but they still call her asking for more
Ndichu, who helped the consultant restructure his finances, shared a breakdown of his initial budget.
| Category | Amount (Sh) |
|---|---|
| Income (2 jobs) | 623,400 |
| Rent | 25,000 |
| Water & electricity | 4,500 |
| Shopping | 16,500 |
| Transport | 60,000 |
| Car insurance | 75,000 |
| Airtime | 6,000 |
| Personal care | 20,000 |
| Netflix | 1,500 |
| Dining out | 120,000 |
| Miscellaneous | 112,400 |
| Black Tax (relatives) | 200,000 |
| Tithe & charity | 50,000 |
| Money Market Fund | 5,000 |
| Investment portfolio | 5,000 |
| Total expenses | 633,400 |
| Monthly deficit | (10,000) |
In total, his monthly expenses amounted to Sh 633,400, exceeding his income and leaving him in the red despite earning what many Kenyans would consider a dream salary, nearly half of what the Kenyan president reportedly earns.
“His budget shocked me, and you too, I’m sure,” Ndichu noted in her post.
“Despite earning well, almost every coin was going to needs and wants, leaving zero room for growth or financial freedom.”
Ndichu worked with the consultant to realign his budget without drastically altering his lifestyle. Through intentional spending, she helped him reduce spending on wants and boost savings and investment from a paltry 1.6% to an impressive 28.07%.
Key changes included:
Cutting dining out from Sh 120,000 to Sh 40,000
Reducing miscellaneous and non-essential spending
Redirecting Sh 175,000 monthly into money market funds, retirement, and investment plans
Black tax: My mom says she’ll curse me if I don’t send her money yet I’m broke, what should I do?
While the black tax allocation was only reduced by Sh 50,000, Ndichu noted that some of the funds still supported siblings in school, a commitment he was willing and able to maintain.
However, the post sparked intense debate online, particularly around the Sh 200,000 allocated to family support. Many viewed the figure as excessive, while others sympathized, citing cultural expectations and obligations.
Speaking to Bizna Kenya, Ndichu acknowledged the emotional complexity of black tax, describing it as one of the most difficult financial challenges her clients face.
“In an African setup, we’ve been raised to believe that helping those in need is a virtue, one that brings blessings and financial rewards. However, if you’re giving beyond your capacity, it becomes draining, emotionally and financially,” she explained.
She emphasized that saying ‘no’ is not selfish but an important step in setting financial boundaries.
“If it’s at your expense, you are not obligated to help. You can express that you wish you could assist, but are facing financial challenges yourself. People must ultimately save themselves,” she said.
Ndichu warned that excessive support can foster dependency and even entitlement, noting that “the more you help, the more some people hurt you.”
She advises setting a fixed limit in your budget for black tax, no matter how small, and communicating this clearly with family members.
“Even Sh 1,000 per month is something. Framing your response within the reality of the tough economic times helps reinforce those boundaries,” she said.
She encouraged alternative ways to support family members, such as offering financial literacy, budgeting tips, or helping them start small businesses, then stepping back to allow them to take responsibility.
“You don’t need to stop helping altogether. But you must help in a way that is sustainable for you and empowers them,” she said.
According to Ndichu, financial freedom isn’t just about how much you earn; it’s about how well you plan.
