This archive report was first published on 16 August 2019.
According to a Mercer Cost of Living 2019 report, Nairobi is one of the most expensive cities to live in, ranking sixth in Africa and 97th in the world.
For many Kenyans, the cost of living in Nairobi is a significant burden, with high rents and expenses making it difficult to save for the future.
Banker Irene Wanjohi, who lives in Nairobi's Utawala area, spends about Sh1,400 on fuel and parking fees every day, and an additional Sh500 on lunch.
She also buys tea-break pastries for Sh100 every day, which adds to her expenses.
Despite moving to her own home, Irene says she has not been able to save much, and is left with little or nothing to save after her daily expenses.
However, she is lucky to have a health insurance cover, which pays for her medical expenses, and her husband chips in to ease her financial burden.
One of her biggest worries is unforeseen meetup costs, such as being invited to a meeting after work where she has to buy drinks or snacks.
Business development manager Martin Mathai advises that transport, lunch, and entertainment are not needs, but luxury items that can easily be avoided.
He suggests carrying packed lunch, going out on alternate weekends for a picnic or potluck party, and never financing a car for more than four years.
According to Martin, if you can save up Sh5,000 without increasing it annually, you could easily confirm a retirement lump sum of Sh16 million or a pension equivalent to Sh160,000 per month for the rest of your life from the age of 60.
Reginald Kadzutu, the chief investment officer at Amana Capital, advises that public transport is not a pleasant ride, but it's cheap and a huge cost saving.
He also suggests taxi pooling and talking to neighbors to cut costs.
Regardless of a person's income and expenditure, Reginald argues that everyone should save for the future.
