Tuesday, January 27, 2009

Kenya: 11 top investment ideas for 2009

  1. Real estate: If you can, start with building two floors. Sell them and fund the rest of your floors with the cash. Unable or unwilling to build? Buy and hold. This is doable in every town in Kenya. Start with Mutula's map of Nai. Think urbanisation-look at your own extended family and you'll notice the majority are in one urban area or the other. I could give you so many examples of serious gains doing buy and hold in any town you care to think of.
  2. Agro-business: Kenya has shortage of all types of foods. Who will meet the supply but you and me? Maize. Yes the crop takes almost 6 months, but even a quarter can pay for itself over two harvests. Dairy (two average cows 10 litres each a day * 30 days* Ksh15= Ksh9k). Trees, cassava, greens.
  3. Solar: Sooner or later, we are going to wake up in Kenya and realise (a) we don't have oil (b) geothermal costs too much to produce (c) rains are unrealible... The market is there and just needs GoK supportive policies.
  4. NSE: Changed paradigm due to inflation and realisation that the game is rigged for many. The NSE will remain one for speculators at least this year and some of 2010. Investors should try...
  5. USE/LUSE/DSE: Oil/copper and other minerals/likely unification of stock exchanges should be your consideration in each of these markets
  6. Venture funding: Rewarding at all levels. Start with own family and move on to investing good commercial ideas. You'll have to do with a small share of profits in initial years though.
  7. Mpesa agency: More of a social enterprise. You don't need to raise 300k (Ksh150k including rental is enough)and its easy to monitor on a daily basis via an Equity online bank account.
  8. Education: Set up own school or jointly with others. Become a part-time lecturer or tutor. Set up a college for technical qualifications like ACCA, IT and even sciences.
  9. T-bills: Entry amount is down to Ksh100k and paying around 8.5% per year after tax. Not open to nrks because the myopic CBK employees won't set up online facilities for guys to open an account from abroad.
  10. Computers, laptops: Good and growing business as Kenyans await faster internet. But need to find ways of getting the pieces to Kenya cheaply.
  11. Hospitality: Build cottages and villas either for bed and or breakfast. This can be done in any town. Or to cater for tourists. Sublet apartments to tourists or NRKs coming home for short periods.

Other unexplored ideas: How about a mobile-based credit provider or sacco? Commodity futures or auction (basically NCB needs real competition for our sake). Or leasing land or offices? Any others? Online ones will follow in other post...

7 comments:

HATUA said...

As I was reading your post I was wondering y ua not mentioning any online business, but I see it will be in your next post.

I think emphasis should be placed on investing more in technology sector. With ICT bill that has been well welcomed and rolling of fibre optic cable. For young students like me who a clearing campus with little capita (in terms of money) tech and online business will be worth looking out for.

on your next post please highlight that sector especially areas that require more intellectual capital as opposed to money.

Concept Advisory Services Ltd said...

On education,these kindergarten outfits are making some good money.
Nowadays you find kids as young as one year attending school which more or less takes the place of a nanny.

MainaT said...

Hatua-post is on the way.
Concept-Education is probably one of the easiest businesses in Kenya because we lack good facilities

Empower Kenya said...

Mainat--
People should also consider:
Retirement homes,
funeral homes,
REIT,
establishing a business that is based on reusable waste.

MainaT said...

EmpowerK-The ideas are many. I missed out on the reusable one.

Kenya Job Tube said...

You should also consider online business especially affiliate marketing and pay per click... alot of kenyans are earning big bucks with these ventures...

SarradiO said...

Great ideas n ventures. I was wondering whether u have any advise on how 2 get funding/capital if one has a workable idea. funding/capital if one has a workable idea.