This archive report was first published on 10 January 2020.
Published on January 10, 2020, passive income investment ideas in Kenya have become increasingly popular as people seek to earn money without the need for day-to-day involvement.
For those who are busy or not interested in running a business, passive income investment options offer a viable alternative. These investments allow your money to work for you, generating income without requiring your personal touch or input.
One such option is unit trusts, which enable you to pool your money with other investors to invest in a wide range of financial assets. Experienced fund managers then invest this pool of money in equities, bonds, and cash, issued in both local and international markets.
Unit trusts offer a low-risk investment option with returns ranging from 7% to 11% per year. You can invest as low as Sh250 or Sh1,000 with companies such as Zimele, CIC Insurance, Britam, Old Mutual, and Genghis. Many of these companies also allow top-ups into your account, enabling you to grow your investment as you earn returns.
Another passive income investment option in Kenya is shares. By investing in shares of companies listed on the Nairobi Securities Exchange (NSE), you can acquire ownership of a portion of a public limited company and earn dividends.
Investing in shares requires you to work with licensed stock brokers and investment banks. There are many licensed brokers in Kenya, offering a range of services to help you navigate the investment process.
Whether you choose unit trusts or shares, it's essential to do your research and make an informed investment decision. This list of passive income investment ideas in Kenya is not in any order of preference, and it's crucial to understand the risks and returns associated with each option.
