This archive report was first published on 31 August 2019.
With over 28 years of experience in the financial sector, Abednego Kimuyu, a former banker, took an early retirement in 2011 to pursue his passion for entrepreneurship. He and his wife Alice, a former Ministry of Agriculture employee, built a non-alcoholic hotel in Nairobi's Lavington as their retirement investment.
According to Abednego, retirement is never a surprise but an eventuality that should enable one to utilise experience learnt during their working life, savings made and realise the dream of re-inventing themselves afresh. He says, 'It must be a time to enjoy and must never be a struggle.'
The hotel, Convent International Hotel, was built on a half-acre plot in Lavington in 2009. Initially, it had 10 rooms, but due to high demand, the couple took a loan to expand the hotel. Today, it has five conference rooms, a restaurant, an open garden party area, and an executive boardroom.
Abednego, who holds a Master's degree in Business Administration from Massachusetts University, worked at KCB Group for 28 years in various sections, including general operations, mortgage financing, and credit risk management. He says, 'Despite the years of expertise in the financial sector, I could not start a bank because it requires a lot of capital. I wanted to build an enterprise that revolves around people.'
For a retirement investment to pay off, Abednego says it has to be professionally run. He adds, 'We have retained architects and a landscape architect as well as tree and flower nursery operator. This ensures everything is planned for.'
The couple's children are not involved in the business, and they have clear structures in place to enable the hotel to run even without their close supervision. This allows them to engage in their passions, such as travelling and attending church meetings across the world.
Married for 36 years, the couple says their sojourn in Nairobi will be short-lived as they are currently concentrating on a farm that also supplies fresh foodstuff to their hotel. Abednego says, 'Old people have no place in a fast lane Nairobi. Will motorists tolerate an old man who slowly crosses the road?'
According to Octagon Africa Financial Services, the lowest one should save for retirement is Sh100 a day or between Sh3,000 to Sh4,000 a month, which will give one up to Sh3 million in pension savings upon attainment of 60 years. Fred Waswa, the Octagon Africa chief executive, advises against instant gratification in favour of a pension's plan that will offer long-term gain.
Hosea Kili, the managing director of CPF Trust Fund Group, adds that upon retirement, expenses usually reduce by 30 per cent, but the retiree has to figure out how to cater for 70 per cent of their monthly expenses. He advises retirees not to venture into investments that they are not very conversant with.
