Can I become a Millionaire in Kenya if my salary is less than Ksh 50,000?



Can I become a millionaire in Kenya when my salary is less than Ksh 50,000?This is a question that came from one of the teachers in public schools, who earns less than Ksh 40,000 per month.

The answer to this question is, yes,,, But how?

The salary of Ksh 50,000 is the average figure for Kenyans living in towns. If the budget is squeezed appropriately, the money can sustain one for a whole month and some remain for savings. For you to become a millionaire, you need at least 3 months to achieve your dream.And for those with this dream,here is how to make it.

Rent a cheap house

Clearly,if your income is Ksh 30,000 to Ksh 50,000,your house rent should not exceed Ksh 10,000 per month.Below is the ideal distribution of the amount you should pay in rent against salary

4,000 20,000
4,500 30,000
5,000 35,000
5,500 40,000
6,000 45,000
6,500-9,000 50,000


With a monthly salary of Ksh 50, 000, you remain with Ksh 43,000 after tax. This is the net amount you are able to handle. After paying your rent, you will remain with Ksh 34,000-Ksh 37,000.After rent you are forced to spend on shopping, transport, and other essential services. From Ksh 37, 000, you will remain with Ksh 15,000-Ksh 20,000.This is the money you should invest wisely.

So how do you convert Ksh 20,000 into Ksh 1 million in three years? The first step is to cut on luxuries and alcohol. Alcohol, women and other luxuries can easily blow your Ksh 20,000.If you successfully manage to eliminate spending on these, you will be able to make sound decisions.

The next step is to choose a viable business venture to invest your money. With Ksh 20, 000, there is no reasonable business you can start, so you have to save until the money can make sense in business. We have two low risk saving options:

Invest in money market fund

Save in Fixed Deposit account

We go for money market fund available at CIC insurance, Britam, Old Mutual .The interest your money will earn from this venture is between 10 % to 21 % per month. This means if you save Ksh 20,000 each month, by the end of your first year your money will have earned over Ksh 3,000 in interest in total you will have more than Ksh 240,000 in your account. The Ksh 204,000 is the money to work with.

The next step is to identify a viable business to do.I will provide capital and profits you expect to earn from top profitable small business in Kenya.

SALON 150,000- 300,000 3,000-10,000
CEREALS 70,000-200,000 3,000-5,000
MILK ATM 200,000 3,000-7,000
DAY CARE 150,000-200,000 1,000-5,000
SELLING FRUIT JUICE 100,000 1,000-3,000
FRESH VEGETABLE BUSINESS 70,000-150,000 2,000-7,000
SHOE SHINING BUSINESS 50,000-100,000 2,000-10,000
FAST FOOD RESTAURANT 150,000-250,000 2,000-10,000
PAULTRY FARMING 100,000-200,000 1,000-3,000


From above chart, you will notice that business there is no business in the list that costs more than Ksh 250,000 in capital. If you decide to start a shoe shinning business, which I believe is the best, you need less than Ksh100, 000 in capital. Most of this money will go into paying your workers.

Assuming you set up the business in your first year of saving, it will take approximately six months to pick up. From the sixth month, you will start seeing profits. This is however dependent on your management skills.The journey to becoming a millionaire starts here.Now assume you are getting Ksh 5,000 per day from your sales. Subtracting expenses, you will remain with approximately Ksh 1,500 in profit-this is the money you will save. In a month you will earn Ksh 45,000 from your small business.

The profit you earn from the business should all be deposited into the Money Market Account.If you deposit Ksh 45,000 per month,the amount will earn another Ksh 500 in interest.Ideally,you are saving Ksh 45,500 each month.

To be a millionaire, you need two years.

This example applies to entrepreneurs in the following towns;

  • Nairobi
  • Mombasa
  • Kisii
  • Thika
  • Kisumu
  • Nakuru