Making Money In Kenya: List Of Ways To Become A Millionaire

• Kenya is home to over 7700 dollar millionaires, and the number keeps increasing, according to a report by Henley & Partners
• There are several ways to become a millionaire in Kenya, including saving and starting a business
• For one to succeed, he/she should start investing at a young age but they should do so wisely to avoid incurring losses

Most people have dreams of being millionaires or billionaires. However, few Kenyans reach this level.

Kenya is home to over 7700 dollar millionaires. Over the last year, individuals with a high net worth of over KSh 100 million increased by 30%.

A report by Henley & Partners titled Africa Wealth Report 2023 indicated the country's centi-millionaires, with wealth valued at $100 million (KSh 14.3 billion) or more, grew to 15 individuals.

Henley & Partners ranked Kenya as the fourth wealthiest African country behind South Africa, Egypt and Nigeria.

"The ‘Big 5’ wealth markets in Africa are South Africa, Egypt, Nigeria, Kenya, and Morocco. These countries together account for 56% of Africa’s high-net-worth individuals and over 90% of the continent’s billionaires," the report stated.

Ways to become a millionaire

There are several ways to become a millionaire in Kenya, according to Kenya Invest.

1. Grow your savings

This is the first step towards becoming a millionaire. Do not save to save but to invest.

As long as you earn income, save something regardless of your income. To achieve this, use the 50:20:30 rule.

It dictates that you should spend 50% of your income on basic needs, 30% towards wants and 20% on savings, as recommended by the United Nations Federal Credit Union (UNFCU).

The savings category includes money you will need to achieve future goals. One can save in a bank, SACCO or platforms such as M-Shwari.

Doreen Karambu, a marketer at Shirika Sacco, told TUKO.co.ke that Saccos allow one to be disciplined to avoid extravagance.

"It offers a saving culture(discipline in savings) since a member cannot access the money daily," Karambu said.

2. Get a rich mentor

An aspiring millionaire needs to have a wealthy mentor to walk them through the millionaire journey.

The mentor should be easily accessible for guidance.

3. Invest wisely

Forbes reports that for one to succeed, he/she should start investing at a young age.

The earlier you start to invest, the more benefits you will accrue.

Some tips to invest wisely include setting up a budget, carrying out a risk assessment and setting deadlines to achieve it.

4. Start a side business

If you are employed, starting a side business is a way of supplementing your income.

Speaking to TUKO.co.ke agricultural consultant Vincent Isambo said Kenyans can plant short-term crops as a side hustle.

"If well managed, different crops can fetch good cash. Vegetables, butternuts, bulb onions, garlic onions and tomatoes are examples of short-season crops that fetch good money," he said.

Other side hustles one can engage in are Airbnb business, baking, blogging and content creation.

5. Live below your means

This involves spending less money than you earn in a month.

To achieve this, create an effective budget and stick to it. This will control your spending habits.

Other tips in this step are setting financial goals for future success, saving for major purchases and paying debts.

Be patient.

Wealthy Kenyans save KSh 1 trillion in dollars

Earlier, TUKO.co.ke reported data by the Central Bank of Kenya (CBK) showed dollar deposits reached KSh 1.06 trillion up from KSh 987.7 billion reported in February

The increase in dollar savings came even as the Kenyan shilling continued to weaken amid a shortage of dollars.

Lead market analyst at FX Pesa Rufas Kamau attributed this to the US Federal Reserve effect, which continues to increase dollar rates to tackle the country's inflation.