With a new year kicking off, now's the time for a lot of people to make financial resolutions. And one of yours may be to finally start investing. 2020 dried up a lot of accounts and investing your money is a great way to “recession proof” yourself for 2021. Here are 5 ways to invest in Kenya  in 2021: Saccos  A Savings and Credit Cooperative is a type of cooperative whose objective is to pool savings for the members and in turn provide them with credit facilities (UN-HABITAT, 2010). The general objective of SACCOs is to promote the economic interests and general welfare of its members. Treasury Bills The way treasury bills work is that you loan the government and then they pay you back with interest. How much you can make varies and it depends on when you invested. Treasury bills are a secure, short-term investment, offering you returns after a relatively short commitment of funds. Treasury bill rates in Kenya are attractive, providing an excellent investment opportunity that is readily available, as they are auctioned each week. Treasury Bonds  These are like treasury bills, with the difference being that bills are short-term borrowing by government while bonds are long term. Anything that is above 12-month duration is a bond, and the repayment period can be as long as even 25 years. Most Treasury bonds in Kenya are fixed rate, meaning that the interest rate determined at auction is locked in for the entire life of the bond. This makes Treasury bonds a predictable, long-term source of income. The National Treasury also occasionally issues tax-exempt infrastructure bonds, a very attractive investment. Corporate Bonds These are issued by companies (as a way of raising working capital) and may or may not be listed on the Nairobi Securities Exchange. The unlisted ones are riskier but also generate a higher return. If unlisted, you can find out about them from various stockbrokers and investment banks. Whether you can access them or not depends on availability. People do not usually trade corporate bonds. They like to hold them because of the high returns over a period of time. Money Market Fund Money Market Funds are for the risk- averse. Though they generally pay less interest than other investments, the advantage is that they are low risk since the monies are invested in securities which have a fixed and secured rate of interest. The investor is also assured of the principle sum plus interest at any given time.

About The Author

Maureen Kasuku

Maureen is our resident cat lady and Beyoncé stan. She writes about spas, brunch and ballet recitals but has never been to any. Moonlights as a social justice activist in her spare time. She knows things and is obnoxiously opinionated on the internet but not in real life

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