From Mango Waste to Millions: How Faith Mumo Built Iviani Farm Into a Value-Added Agribusiness Empire in Kenya
In one of Kenya’s semi-arid counties, Makueni, a region renowned for its abundant mango production. An innovative entrepreneur is transforming local agriculture with grit and vision, through value addition.
Meet Faith Mumo, the CEO and Co-founder of Iviani Farm and Befa Feeds, who has grown from a traditional farmer to a millionaire businesswoman reshaping how Kenya views agribusiness. Through strategic value addition, climate-smart technologies, and empowering thousands of smallholder farmers, Faith is proof that passion and persistence can turn a rural challenge into a global success story.
From Farm Losses to Food Innovation
The journey of Iviani Farm began in 2020, during the peak of the COVID-19 pandemic. With over 20 acres of mangoes, Faith and her team faced massive losses due to restricted movement and a collapsed export market. Like many other farmers, she watched in frustration as mangoes ripened and rotted without buyers.
But unlike many, she didn’t give up.
“We started benchmarking to find ways to preserve our fruits,” Faith recalls. “That’s when we discovered drying as a solution, not only to extend shelf life but to create a business model that could thrive even during crises.” Faith Mumo.
The Iviani Model: Turning 10 Kgs of Mangoes into Ksh 2,000
Here’s where the magic happens: 10 kilograms of fresh mangoes, which fetch around Ksh 200–500, can be transformed into 1 kg of dried mango that sells for Ksh 2,000. This value addition model has become the heartbeat of Iviani Farm’s operations.
Faith Mumo, Governor Mutula Kilonzo and Team
Through fruit and vegetable drying, they’ve extended the shelf life of perishable produce from just 3–5 days to over 24 months. And it doesn’t stop with mangoes, they also process bananas, pineapples, leafy vegetables, and more.
The farm exports 90% of its dried produce to countries including the United States, with the remaining 10% sold locally through supermarkets and cafes.
Faith’s story exemplifies how Kenyan agripreneurs can multiply profits through smart innovation and processing.
Powered by Waste: The VIP Machine Advantage
One of Iviani Farm’s most revolutionary assets is the Village Industrial Power (VIP) machine, a dryer that uses agricultural waste to generate the heat required for drying fruits.
With no access to grid electricity, this technology was a game-changer.
“The founder of the VIP machine gave us a loan-based arrangement through Shell Foundation,” Faith explains. “We repaid it over three years using profits from the dried produce.”
This early innovation laid the foundation for Iviani’s export business, which began immediately upon production. As the dried mangoes reached the U.S., word spread, and new international markets opened up through exhibitions and agribusiness expos.
Beyond Mangoes: Building a Climate-Smart Agribusiness
Today, Iviani Farm is a diversified agribusiness enterprise active in three value chains:
Fruit and Vegetable Processing: Dried mangoes, bananas, pineapples, and leafy vegetables.
Aquaculture (Fish Farming): Through the ASAL Aquaculture Academy, Iviani trains new fish farmers and operates a hatchery supplying quality tilapia and catfish fingerlings.
Animal Feed Manufacturing: Their brand, BA Feeds, provides locally produced animal feeds across Makueni County.
Iviani’s farm site in Kathoka, Makueni, is a Center of Excellence demonstrating climate-smart farming, training over 5,000 smallholder farmers, and running programs in sustainable aquaculture. The farm is supported by a mobile processing unit known as the Factory on Wheels, enabling direct engagement with farmers and reducing post-harvest losses.
Transforming Lives in the Community
Local Farmers at Iviani Farm
Iviani Farm isn’t just about business it’s about impact. Faith and her team provide a guaranteed, premium market for local farmers, buying fresh mangoes at 4 times the local price.
Where other buyers offer Ksh 3–6 per kg, Iviani pays 4 times well over that, encouraging farmers to continue fruit production and avoid abandoning mango trees for other crops.
The ripple effects are significant:
Employment: Iviani employs 20 permanent staff and up to 30 casuals during peak seasons.
Community Growth: Infrastructure, land value, and local development have improved around Kathoka.
Training and Empowerment: With partners like EC FPN and NGOs, Iviani offers free training on professional farming, especially empowering women and youth.
Over 100 Metric Tons of Mangoes Processed
As of 2024, Iviani Farm has processed:
100 metric tons of mangoes
30 metric tons of bananas
Preparing to resume pineapple processing, with some fruits sourced from Uganda.
By reducing time and distance between harvest and processing, Iviani tackles post-harvest losses at the source one of the biggest challenges Kenyan farmers face.
Lessons from the Ground: Advice from Faith Mumo
Faith has seen both the highs and lows of entrepreneurship. Her advice to fellow young entrepreneurs?
“Don’t go into business expecting to succeed tomorrow. It’s a journey of ups and downs. Be patient, be passionate.”
She also warns against copy-paste entrepreneurship. “What works is uniqueness,” she says. “You can bake mandazi like everyone else, but adding just a pinch of ginger could make yours stand out.”
And to the youth?
“You don’t need big capital to start. We began fish farming with plastic basins. If you can’t farm, hang a beehive on a tree. Start with what you have, even if it only earns you ten shillings today, it’s a seed for something bigger.”
The Vision Ahead: Pioneering Sustainable Farming in ASALs
Faith envisions Iviani Farm as a hub for 10 million smallholder farmers across East Africa. Through on-farm value addition, aquaculture, and climate-smart tech demonstrations, she aims to prove that arid and semi-arid lands (ASALs) can be centers of thriving agribusiness.
With each dried mango, tilapia fingerling, and farmer trained, Iviani Farm is redefining rural enterprise in Kenya. Thus, bridging the gap between smallholder resilience and global export potential.
Building a Resilient Business in Kenya, Premium Lessons from Cris Njoki, Waithaka Gatumia, and Tonee Ndungu
In an economy full of uncertainty, volatile policies, and rising youth unemployment, the call to build resilient businesses in Kenya has never been louder. In a powerful episode of the Mantalk ke podcast, three of Kenya’s most dynamic minds-Cris Njoki (founder of IKOJN), Waithaka Gatumia (CEO of Centonomy), and Tonee Ndungu (CEO of Kytabu & Tribbe Nation)- tackle what it really takes to not just survive, but thrive as a business owner in Kenya today.
This blog recaps their conversation and distills key lessons on resilience, wealth, fear, failure, and opportunity for any Kenyan aspiring entrepreneur or established SME. Special Shoutout to Mantalk Ke for such a masterpiece Episode.
What Does Wealth Really Mean in Kenya?
The panel began by redefining what it means to be “wealthy.” Forget flashy cars and high income. According to Waithaka, real wealth is “the ability to live the lifestyle you want without having to work.” It’s about building income-generating assets, not just working for money.
Watch Full Episode: Courtesy Mantalk Ke
Cris Njoki summed it up even simpler: “Wealth is freedom.” Tonee Ndungu agreed, adding that wealth is “unbridled time with peace.” For these leaders, true wealth is not just financial: it’s about purpose, peace of mind, and independence.
Top Money Myths That Hold Kenyan Entrepreneurs Back
Too many Kenyans still equate high income with wealth, but this is a dangerous illusion. As Gatumia notes, earning millions a month doesn’t make you rich if your lifestyle expenses match or exceed your income. If you lose your job or your business fails, you’re left with nothing.
The same problem afflicts many of Kenya’s rising influencers. Tonee Ndungu highlighted that many in the digital creator economy earn well, but few build assets or long-term wealth. Instead, they invest in lifestyle: cars, fashion, status. Without a clear financial strategy, this becomes a trap.
How to Manage Money When You Start Earning
So what should young Kenyans do when they start earning real income? Waithaka shared three rules:
Pay Yourself First – Save and invest before you pay bills or expenses.
Track Your Spending – Know exactly where your money goes.
Focus on Assets – Invest in things that bring money back to you over time.
At Centonomy, Waithaka discourages generic percentage-based budgeting like “save 10%.” Instead, he advocates for purpose-driven planning. Your financial decisions must align with your goals, not arbitrary rules.
What Types of Assets Should Young Kenyans Focus On?
Tonee Ndungu (CEO of Kytabu & Tribbe)
The discussion dove deep into “clever, intelligent, and mad” assets. According to Tonee, intelligent assets include things like stocks or mutual funds, clever assets are real estate and physical property, and mad assets are those high-risk, high-reward ventures, like AI, Bitcoin, or other innovation trends.
The people who build generational wealth often invest in the “mad assets” early during the dot-com boom, Bitcoin in 2010, or AI in 2022.
As Tonee said, “The folks who made money from AI in the last two years mostly weren’t African, because we missed the wave.”
In Kenya, many people buy land and sit on it. But land alone is not wealth unless it’s put to productive use or sold strategically. Asset ownership must be paired with strategy and movement.
How Cris Njoki Built IKOJN from Just KSh 200
Cris Njoki (founder of IKOJN)
One of the most inspiring parts of the podcast was Cris Njoki’s story. After fashion school, she felt inadequate compared to her peers pursuing law, medicine, and business. Still, she held on to her dream of starting a fashion brand.
With just KSh 200, she started thrifting four dresses at KSh 50 each, selling them for profit on Facebook. In one and a half years, she grew this hustle into KSh 1.5 million, which became the seed capital for IKOJN, now one of Kenya’s most loved local fashion brands.
Even after suffering massive losses with bad inventory from China, she bounced back and rebuilt from scratch.
The Role of Fear: Do It Afraid
Fear is a constant companion on the path of entrepreneurship. All three guests acknowledged that even today, they face fear in new business decisions. However, Tonee made it clear:
“Fear is a decision that this is not for me. If you say you can, you’re right. If you say you can’t, you’re also right.”
The key lesson? Do it afraid. Successful people don’t wait for fear to disappear. They act despite the fear. Cris admitted she delayed starting IKOJN even after hitting her savings target out of fear her brand would flop. Eventually, she launched anyway.
Tonee’s example? Speaking at a G7 event in Rome without notice, terrified and unprepared. That moment went viral and led to international partnerships and recognition.
Why Many Kenyan Businesses Remain Small and Fragile
Waithaka Gatumia (CEO of Centonomy)
Waithaka emphasized that a big problem in Kenya is that many businesses are subsistence-level. They earn just enough to survive, not scale. True businesses must aim for profit and sustainability.
He referenced local examples like Tuffoam, which grew from a standard hardware store into a national brand. The difference? They understood how to scale, invest in systems, and measure profitability.
Copying vs. Innovating: What’s the Kenyan Dilemma?
Many Kenyans replicate business models hawking sausages, opening cyber cafés, or launching boutique shops without understanding the market saturation or value chain gaps. Tonee challenged young entrepreneurs to add value to existing solutions.
Instead of copying someone’s fashion brand, why not build a logistics system to support fashion startups? Or create tools that enhance their customer experience?
Passion vs. Profit: Which Matters More?
Tonee stirred the waters with this hot take: “I don’t believe in passion. I believe in profit.” While Cris and Waithaka agreed that passion is important, they emphasized it must be backed by discipline, grit, and financial results.
Building a successful brand is not about doing what you love, it’s about offering value consistently and finding purpose in impact, not validation.
Creating Policy That Supports Youth Entrepreneurs in Kenya
When asked about government policies that could support entrepreneurs, the panelists shared practical ideas:
Remove trade barriers across African countries to allow easier expansion across borders.
Invest in local raw material production to reduce dependency on imports.
Create financing structures and risk capital that support early-stage businesses.
Cris emphasized that despite IKOJN being made in Kenya, she still depends on imported raw materials. Bringing back local textile production would benefit many Kenyan creatives.
Final Words: Grit, Faith, and Support
Mantalk Ke
The podcast ended on a powerful note about the importance of faith, grit, and mentorship. Tonee reminded young people that:
You don’t need exposure to start.
Failure is part of the game.
Support and community matter.
As Cris put it, “Everyone is scared. Even the President. The goal is to live with fear, not wait for it to go.”
Conclusion: How to Build a Resilient Business in Kenya
If you’re young, broke, unemployed, or simply unsure how to begin, this conversation should light a fire in you. From starting with KSh 200 to raising KSh 5.5 million, from auction debts to G7 speeches, resilience is built by action, not excuses.
Whether it’s tech, fashion, media, farming, or content creation, here’s what this podcast taught us:
Start small. Scale with strategy.
Save and invest first, spend later.
Focus on building assets not lifestyle.
Fear is real, but do it afraid.
Be original or improve something that already exists.
Because at the end of the day, belief, consistency, and clarity of purpose will get you through anything, even the Kenyan economy.
From Boeing Engineer to Logistics Entrepreneur, The Inspiring Journey of Charles Thuo and Apexloads
When you think of the typical journey to success, it often follows a familiar script: graduate, get a great job, climb the corporate ladder. But for Charles Thuo, a Kenyan-born aerospace engineer turned entrepreneur, his story took a powerful turn. From working with industry giants like Boeing and Cessna to founding Apexloads, a logistics tech startup revolutionizing transportation in Africa, Charles’ journey is anything but ordinary.
Humble Beginnings in Kenya
Born in Murang’a County, Kenya, Charles Thuo’s early life was shaped by transition and ambition. His family later relocated to Ngong, just outside Nairobi, after his father secured a job with Standard Chartered Bank. From Class 3 through high school, Ngong became his home and the foundation for his education and future career.
Like many Kenyan students of the time, Charles found himself in the common post-high school limbo—waiting for university placements. During this period, he took a course in Information Technology (IT) at Kenya School of Professional Studies (KSPS), which would later become Inorero University, among other names.
While he was later admitted to Kenyatta University (KU) to pursue Biotechnology, Charles only stayed for one semester. A life-changing opportunity to study in the United States soon emerged, and he took a leap of faith that would change his destiny forever.
Discovering Aerospace Engineering in the U.S.
Charles arrived in the U.S. and settled in Oklahoma, a state not commonly on the radar of international students, but one he praises for its affordable living costs and student-friendly environment. He initially began with civil engineering, shifted to general engineering, and finally graduated with a degree in aerospace engineering.
Charles Thuo Story
His time in the U.S. education system introduced him to a concept unfamiliar in Kenya, academic flexibility. Unlike Kenyan institutions that dictate your major, American universities allowed him to explore different paths before landing on his passion.
Soon after graduation, Charles landed roles at two of the world’s most respected aerospace companies—Cessna and Boeing. At Cessna, based in Wichita, Kansas, he worked on executive jets, and later at Boeing’s defense division, helping develop military-grade aircraft.
Engineering Mindset, Entrepreneurial Execution
For Thuo, engineering is about solving problems. And that’s exactly what he’s doing.
“At its core, engineering teaches you how to dissect complex systems and fix them. Whether it’s a jet or a logistics platform, it’s the same principle,” he says.
From designing defense aircraft for Boeing to creating a startup that could transform African logistics, his story exemplifies the power of thinking big, and acting boldly.
A Surprising Pivot: From Skies to Roads
Working for Boeing would be a dream for many, but Charles had a different calling. While still employed in the aerospace sector, he began dabbling in logistics as a side hustle, first by delivering medical supplies to pharmacies and hospitals in a cargo van, then by helping people move households on weekends.
Eventually, he ventured into trucking, and that’s where he found his true passion.
“I went from an aerospace engineer working on aircraft to driving a truck,” Charles says, smiling. “People thought I had lost my mind.”
Despite the skepticism from friends and family, Charles was pragmatic. A truck driver he hired was earning twice his Boeing salary. That sparked a turning point. After six months of weighing his options and tracking seasonal demand, Charles fully transitioned into trucking, earning in three days what he previously made in two weeks.
“I was working full-time at Boeing, but realized that with trucking, I could earn in three days what Boeing paid in two weeks,” he explains. That realization was pivotal.
His decision was driven by economic sense, not ego.
Building Apexloads: African Problems, Global Solutions
As Charles navigated the U.S. logistics space, he noticed how efficient, tech-driven, and systematic everything was. From automated load boards to route optimization, the U.S. trucking industry was lightyears ahead of its African counterpart.
“In Africa, we are at least four decades behind in logistics tech and efficiency,” he says.
With that realization, Charles founded Apexloads, a logistics tech startup aimed at digitizing and streamlining how freight and goods move across Kenya and Africa at large. The idea was simple, build what’s working in the U.S. and tailor it for Africa.
Today, ApexLoads is working to optimize freight movement, connect shippers and truckers through a centralized digital platform, and eliminate the inefficiencies that plague Africa’s supply chains.
Why Apexload Matters for Africa
Apexload Team
Apexload is not just another logistics company. It aims to modernize freight transportation in Africa by creating a tech-first platform that streamlines delivery processes. This includes real-time tracking, efficient cargo matching, and data-driven route optimization.
“Truck owners in Kenya often rely on brokers who charge hefty commissions. Shippers don’t know where their goods are or if they’ll be delivered on time,” Charles explains. ” We’re building infrastructure and we don’t charge commissions.”
Challenges and Future Prospects
Starting a tech company focused on logistics in Africa isn’t easy. Infrastructure, policy, and digital adoption rates present hurdles. But Thuo is undeterred.
“Building something for Africa while living in the U.S. is a challenge, but it’s also a blessing. We get to use the best systems daily and design with that knowledge in mind,” he says.
Apexload is currently expanding operations in Kenya and building partnerships with transporters and manufacturing companies. The goal? A Pan-African logistics revolution.
Not Just Tech, Also a Farmer and Innovator
Before Apexloads, Charles had already embraced entrepreneurship in different ways. In Oklahoma, he managed to buy 40 acres of land at the price of just Ksh150,000 per acre, a fraction of land costs in Kenya. He ventured into farming, raising over 50 goats and 60 chickens at one point. The farm produced goat meat and eggs, adding another revenue stream to his growing portfolio.
Charles Thuo in Farm
This versatility gave him firsthand experience in agriculture logistics, which has become another vertical ApexLoads is eyeing in its long-term roadmap.
Becoming a U.S. Citizen Through the Military
One of the most impactful decisions Charles made was joining the U.S. military in 2013, others also join via the MAVNI Program (Military Accessions Vital to the National Interest). A program allowing non-citizens with specialized skills or language abilities, like Swahili, to join the military in exchange for expedited citizenship.
Charles in Full Army Uniform
After completing 10 weeks of basic training, Charles officially became a U.S. citizen. He later received advanced training in a military job role (MOS) of his choice. This path not only opened doors for entrepreneurship but also drastically reduced his college tuition, giving him legal flexibility to pursue opportunities and build businesses across states.
Lessons from the Military: Leadership and Logistics
Military training not only instilled discipline, but also gave Charles valuable skills in logistics, systems thinking, and leadership. “The military teaches you how to operate in structured, high-pressure environments, skills that directly apply to entrepreneurship,” he says.
The exposure helped him understand how efficient logistics systems work, which later became the backbone of Apexload’s design.
Lessons from the Journey: Break the Stereotype
Charles often reflects on the cultural biases surrounding success and professions. In Kenya, the dream is often portrayed as becoming a doctor, lawyer, or engineer. But Charles is proof that success can take non-traditional paths.
In fact, he shares how in both the U.S. and Kenya, hands-on professions like plumbing or trucking can be more lucrative than white-collar jobs, challenging old mindsets about education and income.
“I always say, it’s not about what you do; it’s about how well you do it,” he says.
And his story proves that point. By combining the engineering mindset (solving problems) with entrepreneurial spirit, Charles has created value across industries from aerospace to farming to logistics.
Vision for the Future: Transforming Africa’s Logistics Landscape
Looking ahead, Charles envisions Apexloads becoming a pan-African logistics powerhouse, digitizing cargo, empowering truck owners, and cutting transport costs that continue to stifle economic growth.
The platform is already being beta tested among transporters in Kenya, offering digital solutions like:
Load tracking
Real-time updates
Driver authentication
Cashless payments
Route optimization
Charles believes that by integrating these systems, Africa can leapfrog into the modern logistics age. He’s particularly passionate about using data and tech to reduce waste and inefficiency, ultimately improving everything from farm produce delivery to urban goods movement.
Final Word: Build to Solve
To young Africans dreaming of success abroad or back home, Charles Thuo offers this advice:
“Don’t fear change or unconventional paths. Whether you’re driving a truck or designing an aircraft, what matters is that you’re building something, learning, and solving problems.”
In Addition, Charles emphasizes on building solution oriented businesses, having a product that solves people problems will always have a distinct market. His story is a powerful testament to resilience, reinvention, and resourcefulness. From rural Murang’a to the skies of Boeing to the logistics yards of Oklahoma, Charles Thuo is redefining what it means to be a modern African entrepreneur.
Let’s dive into Understanding US Tariffs, The Trump Tariff Calculation Formula and Its Impact on Global Trade in 2025
In 2025, the conversation around tariffs has once again taken center stage in American politics and global economics, this time with more weight and urgency. That’s because Donald J. Trump is back in the Oval Office, now serving as the 47th President of the United States, following his historic return to power in the 2024 election. His approach to tariffs bold, unconventional, and unapologetically protectionist, is once again redefining how America engages in international trade, widely known as the Trump Tariffs Formula.
What Are Tariffs and Why Do They Matter?
Tariffs are essentially taxes imposed on imported goods and services. Their core purpose is to protect domestic industries, generate revenue, and correct trade imbalances. While tariffs have been part of U.S. trade policy for centuries, President Trump’s renewed leadership has brought a distinctly aggressive twist to their use—positioning tariffs not just as economic tools, but as diplomatic weapons.
Trump’s Tariff Philosophy: “Reciprocal or Nothing”
President Trump has consistently argued that America has been the “loser” in global trade due to one-sided deals and foreign nations exploiting low or non-existent tariffs on their own exports. His solution? Reciprocal tariffs, a trade policy built on the simple but potent idea: If a country taxes American goods at 25%, the U.S. should do the same in return.
This forms the foundation of what’s commonly referred to in 2025 as the Trump Tariff Calculation Formula. It’s not a complex economic algorithm, but a politically charged and highly visible policy stance: mirror your competitor’s tariff rates to level the playing field.
Trump Tariffs Timeline: From 2018 to Now
2018: First round of tariffs imposed on steel and aluminum under Trump’s first term.
2020: U.S.-China trade war escalates, with steep tariffs on both sides.
2024-2025: Trump returns with a sweeping proposal—a 10% baseline tariff on all imports, with punitive rates for nations deemed hostile or unfair in trade.
In early 2025, his administration began implementing new layers of this tariff policy, creating ripples across international markets and triggering a surge in interest in search phrases like “Trump tariff 2025 explained” and “Trump tariff calculator.”
What Is the Trump Tariff Calculation Formula?
Trump Tariff Calculator
At its core, Trump’s approach to calculating tariffs is rooted in reciprocity. While traditional formulas are based on product classification and customs values, the Trump Tariffs Formula incorporates a political edge:
Trump Tariff Formula: If Country A imposes a 20% tariff on U.S. goods, then the U.S. should impose an equivalent 20% tariff on imports from Country A.
It’s a bold departure from long-standing multilateral trade principles—and one that Trump argues will finally bring “real fairness” to global commerce.
Example:
If India taxes American medical equipment at 18%, the Trump administration could impose the exact same 18% tariff on Indian pharmaceuticals or textiles.
Critics argue it oversimplifies complex trade relationships, but to Trump’s base, it symbolizes strength, fairness, and America’s return to hardline economic diplomacy.
Pros and Cons of the Reciprocal Trump Tariff System
Pros:
Forces countries to negotiate fairer deals
Protects U.S. industries from foreign undercutting
Boosts domestic production
Generates additional revenue
Cons:
Can lead to full-blown trade wars
Raises prices on consumer goods
Hurts companies dependent on global supply chains
Can isolate the U.S. in global markets
Trump Tariff 2025: Strategic Tool or Economic Gamble?
The Trump 2025 tariffs are already shaking up global supply chains. Many companies are pivoting from Chinese or European suppliers and doubling down on domestic production. However, sectors like electronics, autos, and retail, heavily reliant on imports are bracing for price hikes.
Meanwhile, global players like China, the EU, and Canada are preparing countermeasures, raising concerns that America could face retaliatory tariffs, reduced exports, or exclusion from emerging trade alliances.
Trump’s Tariff Doctrine: Economic Muscle Meets Geopolitical Power
More than a simple trade tool, tariffs under President Trump have become a form of foreign policy. Countries like Japan, Mexico, and South Korea have faced pressure to renegotiate agreements to avoid punitive tariffs. Trump’s message is clear: Deal fairly or pay the price.
While his critics label this approach “protectionism,” supporters argue that it’s about reclaiming America’s economic sovereignty.
Conclusion: The Tariff Era Reimagined
As of 2025, President Donald Trump’s return has reignited a new era of aggressive trade policy. His reciprocal tariff strategy is no longer just campaign rhetoric—it’s shaping real-world economic outcomes. Whether you view it as a strategic masterstroke or a risky gamble, the Trump Tariffs Formula is once again front and center in global economic discourse.
For American consumers, businesses, and global leaders, understanding how Trump calculates tariffs could soon be essential for navigating the future of international trade.
Are you Looking for How to Deposit Money on Your Account? Here’s a Guide on how Deposit in All Accounts.
Depositing money is a fundamental financial transaction that allows individuals to fund their bank accounts, mobile wallets, or betting accounts. Whether you are transferring money to a bank, making an online deposit, or funding a betting account, this guide covers the most common methods of depositing money, particularly in Kenya, using M-Pesa.
How to Deposit Money from M-Pesa to an Equity Bank Account
Depositing money from M-Pesa to your Equity Bank account is quick and convenient. Follow these steps:
Open the M-Pesa Menu: On your mobile phone, dial *334# or open the M-Pesa app.
Select Lipa na M-Pesa: Choose the option for Paybill.
Enter Equity Bank Paybill Number: The official Equity Bank Paybill number is 247247.
Enter Your Equity Account Number: Input your bank account number correctly.
Enter the Amount: Specify the amount you wish to deposit.
Confirm and Enter Your M-Pesa PIN: Verify the details, then enter your PIN.
Receive Confirmation: You will receive an SMS from M-Pesa and Equity confirming the transaction.
How to Deposit Money to Co-operative Bank from M-Pesa
To deposit money into your Co-operative Bank account using M-Pesa:
Go to M-Pesa Menu: Dial *334# or use the M-Pesa app.
Select Lipa na M-Pesa and choose Paybill.
Enter Co-operative Bank Paybill Number: The official Co-operative Bank Paybill number is 400200.
Input Your Account Number: Enter your Co-operative Bank account number.
Specify the Amount: Input the amount you wish to transfer.
Confirm and Enter Your M-Pesa PIN: Double-check the details and input your PIN.
Transaction Confirmation: You will receive an SMS confirmation from M-Pesa and Co-operative Bank.
How to Deposit Money to Equity Bank from M-Pesa
The process of depositing money to Equity Bank is similar to the method mentioned above:
Open the M-Pesa Menu
Select Lipa na M-Pesa and Choose Paybill
Enter Equity Paybill Number 247247
Provide Your Equity Account Number
Enter the Amount
Confirm and Input Your M-Pesa PIN
Receive Confirmation Message
How to Deposit Money to KCB Account from M-Pesa
For those banking with Kenya Commercial Bank (KCB), follow these steps:
Go to M-Pesa Menu and Select Lipa na M-Pesa
Enter KCB Paybill Number: The official KCB Paybill number is 522522.
Input Your KCB Account Number
Enter the Amount You Want to Deposit
Confirm and Input Your M-Pesa PIN
Wait for Confirmation from M-Pesa and KCB
How to Make Money Online
Aside from depositing money, many people are looking for ways to make money online. Some of the most effective methods include:
Freelancing: Offer services such as writing, graphic design, and programming on platforms like Upwork and Fiverr.
Affiliate Marketing: Earn commissions by promoting products from companies like Amazon and Jumia.
Selling Digital Products: Create and sell e-books, courses, or stock photos online.
Blogging and YouTube: Monetize content through ads, sponsorships, and memberships.
How to Deposit to Betika Using Paybill
For those who want to fund their Betika accounts, follow these steps:
Go to M-Pesa Menu and Select Lipa na M-Pesa
Enter Betika Paybill Number: Use 290290 as the business number.
Enter Your Betika Account Number: Use your registered Betika phone number.
Specify the Deposit Amount
Enter Your M-Pesa PIN and Confirm the Transaction
Wait for a Confirmation SMS from M-Pesa and Betika
Top Banks to Save Money
Saving money is a crucial step in financial planning. Choosing the right bank ensures that your funds are secure while earning interest. Here are some of the top banks in Kenya for saving money:
Equity Bank – Offers various savings accounts, including fixed deposit options with competitive interest rates.
KCB (Kenya Commercial Bank) – Provides savings accounts with interest benefits and mobile banking access.
Co-operative Bank – Features a range of savings products, including group savings accounts.
NCBA Bank – Known for high-interest savings accounts and digital banking services.
ABSA Bank Kenya – Offers flexible savings plans with attractive interest rates.
Stanbic Bank – Provides financial solutions for long-term savings and investment accounts.
M-Pesa agents can deposit money into their float accounts using the following method:
Go to the M-Pesa Menu and Select Agent Services
Choose Float Transfer and Enter Agent Number
Specify the Amount to Transfer
Enter Your M-Pesa Agent PIN and Confirm the Transaction
Receive an SMS Confirmation from M-Pesa
Conclusion
Depositing money, whether into a bank, betting account, or an online wallet, has been made easy through mobile money services like M-Pesa. By following the step-by-step guides provided above, you can ensure secure and seamless transactions. Whether you are funding a personal bank account, betting wallet, or digital payment platform, M-Pesa remains one of the most reliable methods for quick transactions in Kenya.
In the heart of Kikuyu, Kenya, we meet a dedicated luthier who has spent decades transforming raw materials into instruments that breathe life into music. Ken, a skilled craftsman, has been making guitars since 1971, turning his passion for working with his hands into a lifelong career.
Ken’s Luthier journey into guitar-making began in the rolling hills of Taita, where he attempted to carve his first guitar using only a machete. His first creation was an electric guitar, marking the beginning of a career that would span over five decades. Despite having a background in human resources, Ken’s passion for crafting stringed instruments never wavered. Over the years, he has made and customized guitars for renowned musicians, including Kato Change, Polycarp of Sauti Sol, Nyatiti for Makadem and Susan Owiyo.
Beyond creating guitars, Ken Luthier also repairs a wide range of stringed instruments, including traditional African instruments like the Kambanane and Nyatiti, as well as banjos, mandolins, sitars, and violins. His day-to-day work involves meticulously shaping, assembling, and repairing instruments in his workshop, beginning his craft as early as 7:00 AM each day.
The Art of Crafting a Guitar
The process of making a guitar from scratch is intricate and demands precision. Ken starts by determining the type of guitar he will create whether a steel-string acoustic, an electric, a semi-acoustic, or a solid-body bass guitar. He consults with clients to understand their preferences and sources materials accordingly.
Ken The Luther
Most of Ken’s materials are locally sourced from Kenya. The backs and sides of his acoustic guitars are typically made from Kenyan mahogany, which is abundant in the region. However, for high-end guitars, he imports spruce for the soundboard, as it is a worldwide favorite for its superior tonal quality.
The guitar-making process begins with preparing the wood, cutting, and shaping it to fit the required mold. The sides of the guitar are bent and glued into shape, linings are added for reinforcement, and the neck is carefully attached. Once the structure is assembled, Ken carves and attaches the fretboard and bridge before applying the final finish and adding the strings. Each guitar takes approximately six to eight weeks to complete, though he often works on multiple projects simultaneously to maximize efficiency.
A Global Reach
Ken’s craftsmanship has gained recognition beyond Kenya’s borders. He has received orders from international clients, including musicians from Finland and other countries. His unique approach incorporating African materials and designs sets his instruments apart in the global market.
What Makes Ken’s Guitars Unique?
While the general shape and design of guitars remain consistent, Ken’s work stands out due to his expertise and the unique materials he uses. He integrates African blackwood, a rare and high-quality wood, into his designs, producing instruments with distinctive tonal properties. Additionally, he customizes the aesthetic elements of his guitars by adding African-themed rosettes around the soundhole, making each piece a work of art.
A Legacy in the Making
Ken’s favorite instrument to craft is the classical nylon-string guitar, which he meticulously designs using a combination of imported spruce and local mahogany. If given the chance, he would love to make a guitar for jazz legend George Benson, envisioning an instrument crafted in Africa for a globally renowned artist.
Looking ahead, Ken Luthier is optimistic about the future of guitar-making in Kenya. He has noticed a growing interest among younger craftsmen and is actively contributing to the industry’s growth by training apprentices. His hope is that more Kenyan luthiers will emerge, taking the art of guitar-making to new heights in the coming years.
Ken the luthier’s story is a testament to passion, perseverance, and the beauty of handcrafted artistry. With every guitar he creates, he continues to leave a lasting impact on the world of music, one finely-tuned note at a time.
Nestled in the heart of Nairobi, Robot Café is revolutionizing the hospitality industry by integrating automation into service delivery. At a time when the world is increasingly embracing technology, this café has taken a bold step toward redefining dining experiences. With a team of five advanced robots, Robot Café is not just about food but an immersive encounter with the future.
A Unique Dining Experience
Unlike conventional restaurants, Robot Café offers a glimpse into the future of dining. As you walk into the establishment, you are welcomed by Claire, a multi-functional robot that greets customers and bids them farewell when they leave. The experience only gets better as you interact with the robotic team designed to enhance service efficiency.
According to John Kariuki, the current manager of Robot Café, the idea was to introduce a unique concept that sets them apart from the competition.
“Many restaurants offer great food and ambiance, but we wanted to add an extra layer of innovation,” he explains. “Our robots not only serve food but also entertain and assist customers in various ways.”
Meet the Robots
Robot Café has five robots, each programmed with specific functions:
Nadia – The pioneer and most famous robot, responsible for leading the automation wave at the café.
Claire – The receptionist robot that welcomes guests upon arrival and thanks them when they leave.
Shakur – Primarily assists with food delivery from the kitchen to the tables.
Cleo – A multipurpose robot assisting in clearing tables and handling other tasks.
24 – The latest addition, designed to sing birthday songs and interact with customers.
These robots are not replacing human staff but rather working alongside them to improve service delivery. “We have not reduced the number of staff due to automation; rather, we’ve incorporated the robots to work hand in hand with our team,” says Kariuki. “They make the work easier for our waiters, especially when the restaurant is fully booked.”
Advantages of Automation in Hospitality
Robot Café is proving that technology can enhance efficiency in the hospitality sector. Some key benefits include:
Speed and Accuracy: Robots eliminate delays and ensure food is delivered promptly and accurately.
Entertainment Factor: The novelty of being served by a robot enhances customer experience, making visits memorable.
Reduced Workload for Staff: Employees can focus on personalized service, leaving repetitive tasks to robots.
Consistency: Unlike human staff, robots do not experience fatigue, ensuring consistency in service delivery.
Challenges Faced by Robot Café
Despite the advantages, implementing robotic service comes with its own challenges.
Technical Maintenance: Any breakdown requires specialized expertise and spare parts, which must often be imported.
Power Dependency: The robots rely on electricity, so power outages cause temporary disruptions.
Limited Interaction: Some robots have restricted conversational capabilities, making it necessary to enhance AI functionalities.
To mitigate these challenges, the café is continuously improving its robotic software and planning to introduce advanced AI models that can engage in more dynamic conversations with customers.
Customer Reactions and Popularity
Robot Café has quickly gained traction among Nairobians and visitors. “Every time a robot delivers food, customers instinctively take out their phones to record the moment,” Kariuki says. “People love the idea, and it has become a trending topic in Nairobi’s dining scene.”
Customer reviews reflect excitement and appreciation for the futuristic experience. Many patrons describe it as “a must-visit destination” and “an exciting way to experience technology in everyday life.” The café’s popularity has also prompted discussions on how automation can be incorporated into other sectors.
Robot Claire
The Future of Robot Café
Looking ahead, Robot Café aims to expand and enhance its services. “In the next two years, we envision becoming one of the biggest franchises in Nairobi,” says Kariuki. “We are exploring ways to make our robots more interactive and efficient.”
Additionally, the café is offering robotics training sessions for students interested in AI and automation. These classes, held on Mondays, Tuesdays, and Wednesdays, aim to educate young minds about the potential of robotics in different industries.
Final Take
Robot Café is more than just a restaurant; it is a testament to how technology can revolutionize industries. By seamlessly integrating robots into its service model, it offers a blend of efficiency, entertainment, and futuristic experiences. If you are in Nairobi and want to witness the future of dining firsthand, Robot Café is the place to be.
Visit Robot Café today and experience firsthand how the hospitality industry is evolving in the digital age.
Here’s everything you need to know about Top AI Innovations to use in Kenya 2025 that are Transforming Technology and Business.
Artificial Intelligence (AI) has revolutionized industries worldwide, and Kenya is no exception. With technological advancements reshaping various sectors, Kenya has emerged as a hub for AI development, spurring innovation across numerous industries. In 2025, AI in Kenya continues to evolve, unlocking new opportunities for businesses, education, healthcare, and more. This blog explores the top AI innovations making waves in Kenya, focusing on some of the most influential tools and platforms driving progress in the country.
Top AI Innovations to use in Kenya
1. Gemini AI: Redefining AI Capabilities in Kenya
Gemini AI is a powerful tool that continues to capture attention across Kenya in 2025. Known for its advanced capabilities in machine learning and natural language processing, Gemini AI is quickly gaining traction in sectors like customer service, e-commerce, and content creation. By providing businesses with innovative solutions, Gemini AI enables organizations to streamline operations, enhance customer experiences, and automate repetitive tasks.
With its cutting-edge chatbot technology, Gemini AI offers a seamless conversational experience. Thus, allowing Kenyan businesses to engage with customers in real-time. Its ability to understand and process complex human queries makes it a game-changer for businesses looking to improve customer support and satisfaction. Whether it’s a local startup or a large corporation, Gemini AI is helping companies across Kenya embrace AI for scalable growth.
2. Perplexity AI: A New Era in Business Intelligence
Perplexity AI has established itself as a leading AI company in Kenya, focusing on business intelligence and data analytics. By leveraging AI-powered algorithms, Perplexity AI enables businesses to extract meaningful insights from large datasets, empowering them to make informed decisions. Whether it’s understanding consumer behavior, predicting market trends, or optimizing operations, Perplexity AI is a game-changer for Kenyan businesses looking to gain a competitive edge.
This AI platform specializes in natural language processing, allowing users to interact with data in a more intuitive manner. Businesses across Kenya, especially in the finance, agriculture, and healthcare sectors, are using Perplexity AI to enhance decision-making, streamline processes, and unlock new opportunities. As data continues to grow in importance, Perplexity AI stands at the forefront of driving data-driven innovation in Kenya.
3. Claude: A Cutting-Edge Language Model for AI Applications
Claude, an advanced language model, is making significant strides in Kenya’s AI ecosystem. As one of the top AI models in 2025. Claude focuses on enhancing the capabilities of natural language processing (NLP). This model is particularly useful in industries that require advanced text analysis, such as journalism, content creation, and digital marketing.
Claude’s ability to generate high-quality content, translate languages, and understand complex queries is setting it apart as a vital tool for Kenyan businesses. For content creators, marketers, and publishers, Claude helps generate articles, reports, and advertisements at scale, saving time and improving efficiency. With its natural-sounding language capabilities, Claude is revolutionizing how Kenyan businesses engage with their audiences.
4. QuillBot: AI for Streamlining Writing and Content Creation
QuillBot, a popular AI writing tool, is making a notable impact in Kenya’s content creation landscape. In 2025, content creation is more crucial than ever for businesses looking to connect with their audience. Whether through blogs, articles, social media posts, or advertisements. QuillBot simplifies the writing process by offering advanced paraphrasing tools and grammar-checking capabilities.
Kenyan businesses in marketing, education, and media are embracing QuillBot to streamline their content creation efforts. This AI tool can rephrase sentences, suggest better word choices, and improve readability. Hence, making it an essential tool for professionals who need to produce high-quality written content quickly. As content marketing becomes an even bigger priority in Kenya, QuillBot is helping businesses enhance their communication while saving valuable time.
5. GPT-4: The Ultimate AI for General Purpose Applications
GPT-4, developed by OpenAI, is one of the most advanced AI innovations models globally and is quickly gaining traction in Kenya in 2025. This powerful model has the ability to generate human-like text, answer questions, summarize content, and even engage in conversations on various topics. Its versatility makes it suitable for a wide range of applications across different industries in Kenya.
From automating customer support to generating educational content and assisting in software development, GPT-4 is revolutionizing how businesses in Kenya use AI. The model’s ability to handle diverse tasks efficiently and accurately has made it a go-to solution for enterprises looking to implement AI-powered systems. In sectors like healthcare, education, and customer service, GPT-4 is enhancing productivity and offering new opportunities for businesses to serve their customers better.
6. Poe: The All-in-One AI Platform for Seamless Integration
Poe is an innovative software platform that has gained popularity in Kenya in 2025. Known for its versatility and ease of integration. Notably, Poe helps businesses build and deploy AI-driven applications across multiple platforms. Whether it’s an AI-powered chatbot, recommendation engine, or analytics dashboard, Poe simplifies the AI development process for Kenyan companies. Thus, enabling them to create intelligent applications without the need for extensive coding expertise.
For businesses in Kenya looking to implement AI technology but lacking in-house expertise, Poe provides an accessible solution. With its user-friendly interface and pre-built templates, Poe makes AI accessible to organizations of all sizes. This tool is particularly useful for small and medium enterprises (SMEs) that want to enhance their digital capabilities without breaking the bank.
7. DeepSeek R1
Deep Seek is an innovative AI-driven search platform that leverages advanced algorithms to provide users with highly relevant and accurate search results. It stands out by using machine learning techniques to understand the intent behind search queries, offering a more personalized and efficient search experience. Deep Seek’s ability to analyze vast amounts of data in real-time enables it to deliver precise information across various industries, including healthcare, finance, and education. As it continues to evolve, Deep Seek is poised to redefine how businesses and individuals access and utilize information, offering powerful tools for decision-making and problem-solving.
The Role of AI in Key Sectors in Kenya
Kenya’s embrace of AI innovations is not limited to just one or two industries; rather, it spans various sectors, each benefiting from AI innovations. The healthcare sector is leveraging AI-powered diagnostic tools, enhancing patient care, and streamlining administrative tasks. In agriculture, AI is helping farmers optimize crop yields, predict weather patterns, and monitor livestock health. Moreover, AI’s impact on education is notable, with personalized learning solutions being deployed to enhance student engagement and improve learning outcomes.
Kenya’s rapidly expanding tech ecosystem is a testament to the country’s commitment to AI-driven innovation. With government initiatives, such as the Kenya AI Strategy, promoting AI research and development, the future of AI in Kenya looks promising. The demand for AI talent is growing, with more universities and training institutions offering AI-focused courses to equip the next generation of innovators.
Conclusion: The Future of AI in Kenya
As Kenya continues to embrace AI in 2025, the country stands poised to be a leader in AI adoption in Africa. With the rise of powerful tools like Gemini AI, Perplexity AI, Claude, QuillBot, GPT-4, and Poe, Kenyan businesses are enhancing their operations. Hence, improving customer engagement, and driving innovation across multiple industries.
These AI advancements not only provide tangible benefits to businesses but also have the potential to transform the everyday lives of Kenyans. From improving access to healthcare to optimizing agriculture and boosting education, AI is enabling Kenya to solve complex challenges and foster sustainable development. As AI continues to evolve, Kenya will undoubtedly remain at the forefront of this exciting technological revolution.
With the support of local startups, government initiatives, and a growing pool of AI talent, Kenya’s AI landscape is set to expand. Hence, creating new opportunities for both businesses and individuals. The future is bright for AI in Kenya, and the journey toward innovation is just beginning.
Andre Hakkak Net Worth: A Deep Dive into the Life and Success of the Financial Mogul & How he invests.
In the world of finance and investment, few names resonate as strongly as Andre Hakkak. A visionary entrepreneur, investor, and co-founder of White Oak Global Advisors, Hakkak has built an impressive career that has not only solidified his reputation as a financial expert but also amassed a significant net worth. In this blog, we’ll explore Andre Hakkak’s net worth, his career journey, and the key factors that have contributed to his success.
Who is Andre Hakkak?
Andre Hakkak is a seasoned financial professional with over two decades of experience in the investment and asset management industry. He is best known as the co-founder and CEO of White Oak Global Advisors, a leading global investment firm specializing in private credit and alternative investments. Under his leadership, White Oak has grown into a multi-billion-dollar enterprise, managing assets across various sectors, including real estate, infrastructure, and small-to-medium-sized enterprises (SMEs).
Hakkak’s expertise lies in structuring and managing complex financial transactions, particularly in the private credit space. His ability to identify lucrative investment opportunities and navigate challenging market conditions has earned him a reputation as one of the most influential figures in the financial world.
Andre Hakkak’s Net Worth
While exact figures regarding Andre Hakkak’s net worth are not publicly disclosed, industry estimates suggest that his net worth is in the range of $50 million to $100 million. This wealth is primarily derived from his successful career in finance, his ownership stake in White Oak Global Advisors, and his various investment ventures.
White Oak Global Advisors, which Hakkak co-founded in 2007, has grown exponentially over the years. The firm manages billions of dollars in assets and has established itself as a key player in the private credit market. As the CEO and a significant stakeholder, Hakkak’s financial success is closely tied to the firm’s performance.
In addition to his role at White Oak, Hakkak has made strategic investments in real estate, technology, and other high-growth sectors, further diversifying his wealth portfolio.
Early Life and Education
Andre Hakkak’s journey to financial success began with a strong educational foundation. He holds a Bachelor of Science degree in Business Administration from the University of Southern California (USC), where he graduated with honors. His academic background provided him with the knowledge and skills necessary to excel in the competitive world of finance.
Hakkak’s early career was marked by a series of roles at prominent financial institutions, where he honed his expertise in investment management and credit analysis. These experiences laid the groundwork for his eventual transition into entrepreneurship.
The Founding of White Oak Global Advisors
In 2007, Andre Hakkak co-founded White Oak Global Advisors alongside his business partner, Andreas Moon. The firm was established with the goal of providing innovative financing solutions to small and medium-sized enterprises (SMEs) that were often underserved by traditional banks.
White Oak’s unique approach to private credit, which focuses on customized lending solutions and risk management, quickly set it apart from competitors. Over the years, the firm has expanded its offerings to include a wide range of investment products, including real estate financing, infrastructure loans, and asset-based lending.
Under Hakkak’s leadership, White Oak has grown into a global powerhouse, with offices in San Francisco, New York, London, and Sydney. The firm’s success has been driven by its ability to adapt to changing market conditions and its commitment to delivering value to its clients.
Key Factors Behind Andre Hakkak’s Success
Visionary Leadership: As the CEO of White Oak Global Advisors, Hakkak has demonstrated exceptional leadership skills. His ability to anticipate market trends and make strategic decisions has been instrumental in the firm’s growth.
Innovative Investment Strategies: Hakkak’s expertise in private credit and alternative investments has allowed White Oak to capitalize on opportunities that other firms often overlook. His focus on customized solutions and risk management has earned the trust of investors and borrowers alike.
Commitment to SMEs: One of the hallmarks of Hakkak’s career has been his dedication to supporting small and medium-sized enterprises. By providing these businesses with access to capital, he has played a key role in driving economic growth and job creation.
Global Perspective: Hakkak’s international outlook has enabled White Oak to expand its operations across multiple continents. This global presence has not only diversified the firm’s revenue streams but also positioned it as a leader in the private credit market.
Philanthropy and Giving Back: Beyond his professional achievements, Hakkak is also known for his philanthropic efforts. He has supported various charitable causes, including education, healthcare, and community development.
Andre Hakkak’s Impact on the Financial Industry
Andre Hakkak’s contributions to the financial industry extend far beyond his net worth. As a pioneer in the private credit space, he has helped redefine the way businesses access capital. His innovative approach to lending has provided a lifeline to countless SMEs, enabling them to grow and thrive in an increasingly competitive market.
Moreover, Hakkak’s success has inspired a new generation of entrepreneurs and investors. His story serves as a testament to the power of hard work, perseverance, and strategic thinking.
What’s Next for Andre Hakkak?
As of 2023, Andre Hakkak shows no signs of slowing down. He continues to lead White Oak Global Advisors with a focus on innovation and growth. The firm is actively exploring new investment opportunities in emerging markets and cutting-edge technologies, such as fintech and renewable energy.
In addition to his professional endeavors, Hakkak remains committed to philanthropy and mentorship. He frequently shares his insights and experiences with aspiring entrepreneurs, offering guidance on how to navigate the complexities of the financial world.
Conclusion
Andre Hakkak’s net worth is a reflection of his unwavering dedication to excellence and his ability to seize opportunities in the ever-evolving financial landscape. From his early days as a business student to his current role as the CEO of a global investment firm, Hakkak’s journey is a testament to the power of vision, innovation, and hard work.
As he continues to shape the future of finance, Andre Hakkak’s legacy will undoubtedly inspire countless others to pursue their dreams and make a lasting impact on the world. Whether you’re an aspiring investor or simply curious about the life of a financial mogul, Andre Hakkak’s story is one that offers valuable lessons and insights for all.
Here we take a look into Bonds in Kenya: A Comprehensive Guide to Investing in Government and Corporate Bonds.
Recent Bond Released by Kenyan Government
Investors in Kenya are increasingly showing interest in long-term bonds, driven by their stable returns and the government’s efforts to fund infrastructure projects. According to a report by Business Daily four days ago, the appetite for long-term bonds has grown as investors seek reliable investment options amid economic uncertainties. In a related development, the Central Bank of Kenya (CBK) recently launched a Ksh 70 billion bond sale, offering tax-free benefits to attract a broader range of investors, with a minimum investment threshold of Ksh 50,000, as reported by Nairobi Wire three days ago. Additionally, the Kenyan government is seeking to raise Ksh 70 billion through reopened infrastructure bonds, aimed at financing critical development projects, as highlighted by Kenyan Wall Street three days ago. These initiatives underscore the government’s reliance on bonds to drive economic growth while providing investors with lucrative opportunities.
Bonds are a cornerstone of the financial markets, offering investors a reliable way to grow their wealth while supporting economic development. In Kenya, bonds have gained significant traction as both individual and institutional investors seek stable returns. This blog explores the bond market in Kenya, focusing on government bonds, corporate bonds, and the role of the Central Bank of Kenya (CBK) in regulating this vital sector. Whether you’re a seasoned investor or a beginner, this guide will help you understand how bonds work in Kenya and why they are a valuable addition to your investment portfolio.
What Are Bonds?
Bonds are debt instruments issued by governments, corporations, or other entities to raise capital. When you buy a bond, you are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity. Bonds are considered lower-risk investments compared to stocks, making them an attractive option for conservative investors.
In Kenya, bonds are categorized into two main types: government bonds and corporate bonds. Government bonds are issued by the Kenyan government through the Central Bank of Kenya (CBK), while corporate bonds are issued by private companies to fund their operations or expansion projects.
How Do Bonds Work in Kenya?
The bond market in Kenya is well-regulated and offers a variety of options for investors. Here’s how bonds work in the Kenyan context:
Issuance: The Kenyan government, through the CBK, regularly issues bonds to finance infrastructure projects, manage public debt, and stabilize the economy. Corporate bonds, on the other hand, are issued by companies like Britam and KCB Bank Kenya Limited to raise capital for business growth.
Investment: Investors can purchase bonds through the Nairobi Securities Exchange (NSE) or directly from the CBK. The minimum investment amount for government bonds is often set at Ksh 50,000, making it accessible to a wide range of investors.
Interest Payments: Bonds pay interest, known as the coupon rate, at regular intervals. Government bonds in Kenya typically offer semi-annual interest payments, while corporate bonds may have varying payment schedules.
Maturity: Bonds have a fixed maturity period, ranging from short-term (less than a year) to long-term (up to 30 years). At maturity, the issuer repays the principal amount to the investor.
Types of Bonds in Kenya
Kenya’s bond market offers a diverse range of options to suit different investment goals. Here are the five main types of bonds available:
Government Bonds: These are issued by the Kenyan government and are considered the safest investment option. Examples include infrastructure bonds, which are specifically designed to fund public projects like roads and energy facilities.
Corporate Bonds: Issued by private companies, corporate bonds offer higher returns than government bonds but come with increased risk. Companies like Britam and KCB Group have issued corporate bonds to raise capital for expansion.
Treasury Bills: While not technically bonds, treasury bills are short-term debt instruments issued by the CBK. They are popular among investors seeking low-risk, short-term investments.
Premium Bonds: These are a unique type of bond where investors have the chance to win prizes instead of receiving regular interest payments. Premium bonds are not yet widely available in Kenya but are gaining interest globally.
Infrastructure Bonds: These bonds are specifically issued to fund large-scale infrastructure projects. The Kenyan government has recently reopened infrastructure bonds to raise funds for development initiatives.
The Role of the Central Bank of Kenya (CBK)
The CBK plays a pivotal role in Kenya’s bond market. It acts as the government’s fiscal agent, managing the issuance and sale of government bonds. The CBK also regulates the bond market to ensure transparency and protect investors.
Recently, the CBK launched a Ksh 70 billion bond sale with tax-free benefits, attracting significant interest from investors. This move highlights the government’s commitment to leveraging bonds as a tool for economic growth.
Bonds vs. Stocks: Which Is Better?
When deciding between bonds and stocks, it’s essential to consider your risk tolerance and investment goals. Bonds are generally safer and provide steady returns, making them ideal for conservative investors. Stocks, on the other hand, offer higher potential returns but come with increased volatility.
In Kenya, many investors choose to diversify their portfolios by including both bonds and stocks. This strategy helps balance risk and reward, ensuring long-term financial stability.
How to Invest in Bonds in Kenya
Investing in bonds in Kenya is a straightforward process. Here’s a step-by-step guide:
Open a CDS Account: To trade bonds on the Nairobi Securities Exchange (NSE), you need a Central Depository System (CDS) account. This account acts as a repository for your bonds and other securities.
Choose Your Bonds: Decide whether you want to invest in government bonds, corporate bonds, or treasury bills. Consider factors like maturity period, interest rate, and risk level.
Place Your Order: You can buy bonds through a licensed stockbroker or directly from the CBK. Ensure you meet the minimum investment requirements.
Monitor Your Investment: Keep track of your bond’s performance and interest payments. Most bonds in Kenya offer predictable returns, making them a low-maintenance investment option.
Benefits of Investing in Bonds in Kenya
Stable Returns: Bonds provide predictable interest payments, making them a reliable source of income.
Low Risk: Government bonds, in particular, are considered one of the safest investments available.
Tax Benefits: Some bonds, like infrastructure bonds, offer tax-free interest income, enhancing your overall returns.
Diversification: Adding bonds to your portfolio helps reduce risk and balance your investment strategy.
Challenges in the Kenyan Bond Market
While bonds offer numerous benefits, there are some challenges to consider:
Liquidity: The secondary market for bonds in Kenya is relatively illiquid, making it difficult to sell bonds before maturity.
Interest Rate Risk: Bond prices are inversely related to interest rates. If interest rates rise, the value of existing bonds may decline.
Inflation Risk: High inflation can erode the real value of bond returns over time.
Conclusion
Bonds are a powerful investment tool that can help you achieve your financial goals while contributing to Kenya’s economic development. Whether you’re interested in government bonds, corporate bonds, or infrastructure bonds, the Kenyan market offers a variety of options to suit your needs.
By understanding how bonds work and leveraging the expertise of institutions like the Central Bank of Kenya, you can make informed investment decisions that yield long-term benefits. So, take the first step today and explore the world of bonds in Kenya – your financial future will thank you.
