Top five investment opportunities right now in Kenya

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Today I decided to prowl the net and see what makes people do the stuff they do on Fridays. Well I came across the hashtag #TumiaPesaIkuzoee and I asked myself, what’s the best way to use money for it to get used to me? Spend it as I want as fast as I get it or do I invest it to create more revenue streams for me to spend it better?

As I thought about this, it hit me, the best way to use money is to invest it. I have heard many people say that the poor people all they do is spend their money whilst the rich folks invest first before they spend. Don’t know how true this is as am in an ecosystem that can’t seem to define where I fall really.

best-way-to-use-money

I kept thinking, it’s an election year, there is fear in the air, whether true or not, it’s affecting the follow of capital in the economy. Not to mention the fact that banks are only lending to the government and the government’s not paying SMEs and other suppliers. So it’s a 20-20 kind of situation and jobs are being cut, unemployment rate is going up, no wonder no single politician is talking about this.

So, best way to use money? Am thinking despite the challenges we facing as a country, there are hidden opportunities where if one understood :

  • Their risk tolerance
  •  The market needs i.e supply and demand
  • The regulatory eco system
  • The Customer needs
  • The competition
  • The issue of inflation as it affects the aspect of savings

Then one can be able to invest, which is the best means of using money and make some good returns as we go through the turbulence of the forth coming elections and the legal post election issues.

These opportunities are in the following sectors of our economy:

  • Investing in agriculture through mechanisation and modern day farming techniques.

With the drought ravaging certain parts of the country and the EA region, food is going to be pricy. Ugali flour is now Retailing at Sh 187 for a 2kg packet. This is just crazy given that Ugali is the staple food for Kenyans. This is a huge opportunity to feed over 200M people in the region. It’s capital intensive but the risks are low and the returns are high.

  • Investing in the PR and Branding sector

With the elections coming soon, with over 10000 aspirants gearing for the elections, branding is big opportunity for many especially the youth to take advantage of this. This particular sector will control most cash flow in the political game.

PR comes through the issue of content Development, social media engagement and artwork. This is the perfect sector for the youth to engage in. If they joined hands, they would reap good returns in the sector which is not capital intensive, and risks are really low.

  • Investing in the Logistics sector

Perfect time to have your hired out. Why? Every aspirant is looking for cars. Or better still, the likes of uber, Little Cab and et al are looking for cars to handle the ever increasing motor transport demand. With an increasing population, Kenyans need more cars to handle their travel plans. The hailing apps have shown the hunger here. It’s capital intensive but since its asset based, certain banks are financing this such as Coop, NIC and Sidian.

  • Investing in the Retail sector

This is one sector that needs a serious and proper disruptor. It’s been in the hands of few and as the population explosion is happening, with customers having more diverse options, the sector needs to adapt too. Investments in online shopping platforms, online delivery platforms, price comparison platforms, credit availing platforms, commodity holding apps which link the market and the retailer or the customer are some of the few areas one can invest in.

retail-sector

Supply chain management is big issue as far as retail is concerned and in Kenya, cartels control this aspect. It’s high time this was disrupted.

  • Investing at the Nairobi Securities Exchange

For me, this is the best way one can make money right now. The NSE has been performing dismally for the last couple of quarters due to a myriad of reasons, some being a poorly performing economy, lack of investor confidence, lack of investor awareness for the local investor and too many profit warnings from the listed firms.

To many, this presents a bad omen, to me, this is the perfect time to enter into the market, when the bear is ruling and the bull is bleeding profusely. Yes, it will take time for the bull to heal and for the bear to be shown the down, which means, in between, is the perfect time to get in, get your front seat and wait for the wind to hit the sail and the NSE will soar.

It’s not capital intensive and though the risks are high, right now in Kenya it’s the best way to #TumiaPesaIkuzoee

Related: Smart Investments Involve Diversification and Informed Decision-Making

 

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About Author

Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com