Passive income in Kenya – sources, ideas, and what it is

Going to work in order to be able to finance a certain standard of living is part of everyday life for most people. But sometimes you dream of building a fortune without having to do much for it. The Internet is full of simple and quick solutions to this wish, but these are often dubious offers that only cost money instead of bringing any. Nevertheless, it is possible to build up a second income alongside your main job that does not require much work – or at least less than a normal 40-hour job. The keyword is passive income.

Some of the ideas provided in this article can work for beginners and for investment novices.

In a bid to create wealth in Kenya, most Kenyans will usually seek answers to the following questions:

  1. How to make Ksh 500 per day in kenya?
  2. How to make Ksh 1,000 per day in kenya?
  3. How to make Ksh 5,000 per day in kenya?
  4. How to make Ksh 10,000 per day in kenya?
  5. How to make Ksh 15,000 per day in kenya?
  6. How to make Ksh 20,000 per day in kenya?
  7. How to make Ksh 25,000 per day in kenya?
  8. How to make Ksh 50,000 per day in kenya?
  9. How to make Ksh 100,000 per day in kenya?
  10. How to make Ksh 150,000 per day in kenya?
  11. How to make Ksh 200,000 per day in kenya?

The answers to these questions could be in exploring the available passive income ideas in Kenya.

We will explain to you exactly what passive income is and what opportunities you have to use additional sources of income .

In summary:

Definition: Passive income is income for which you have to do little or nothing on an ongoing basis . However, passive income is usually preceded by increased effort, from which income is then generated passively, without you having to actively work for it.
Examples: The most common examples of passive income in Kenya are profits from shares, funds and other financial investments, rental income , sales of self-made products via online platforms or income from affiliate marketing and other types of advertising.
Effort: A passive income can of course be preceded by a greater effort . Depending on what you want to passively earn money with , it is necessary to first achieve a certain level of awareness and trustworthiness, produce products , program them or do other preparatory work.
Start-up capital: A high start-up capital is not a prerequisite for passive income . Often all you need is a good idea , ambition and perseverance to build a second income. However, if you want to invest in stocks , ETFs and other securities, a certain amount of seed capital is an advantage.

What is passive income in Kenya?

As soon as you don’t work actively for your earnings or only work a little , it’s called passive income . The money generates itself without you having to do much for it. With passive income, you can earn money while you’re on vacation or even while you’re asleep .

At least that’s the theory. In practice, passive income in Kenya still requires minimal effort to manage assets and revenue streams and keep the income stream going . Depending on which strategy you want to use to earn money passively , the effort is sometimes higher or lower. This applies in particular to the start-up phase.

Many ways and ideas to build a passive income are associated with a lot of work . For example, if you want to earn money passively by selling or streaming music, you first need time to compose the music and write the lyrics. There are also rehearsals and professional recordings. Only then can your music work for you and generate money without you having to actively do anything.

This example also makes the difference to active income clear. You do your normal 40-hour job, actively do your physical or mental work for your employer and receive a corresponding salary at the end of the month. Passive income in Kenya is generated even when you are not working . You don’t get paid directly for the work involved in the start-up phase, you hardly have to do anything for it later. The money will flow almost automatically – provided your idea works.

How to build passive income in Kenya?

There are several ways to earn money passively in Kenya. Here some examples:

  • Invest money , e.g. in stocks and ETFs
  • Rental income from real estate or objects, e.g. tools
  • Advertising and Affiliate Marketing
  • Grant loans and receive interest
  • Sell ​​homemade products

Each option involves a different amount of effort , risk , prerequisites and compromises. For example, if you do not own your own property , you cannot earn rental income. This possibility of generating a passive income in Kenya is therefore not open to everyone. On the other hand, anyone can sell self-made products – whether on internet platforms or at the flea market. However, this in turn requires an initial effort to create them and interested parties who want to buy the products.

The Dos and Don’ts: Important tips for passive income in Kenya

If you are thinking about building another income stream, here are some things to think about:

  • Which ways to passively earn money suit me?
  • Which of these options can I implement well?
  • How much time and money can I invest?
  • How promising is my idea? Can it work?
  • How much risk do I want to take?
  • What requirements must be met?

Once you have decided on an idea to generate extra passive income in Kenya, there are still a few things to consider.

  • Requirements:

Check which requirements should be met for the implementation of your idea. If you would like to sell your own products, for example, the registration of a small business can be a requirement.

  • Consider class not mass:

It could be difficult to build passive income in Kenya with many different ideas at the same time , according to the motto: one of them will work. Because you’re splitting your time and resources, ideas are likely not getting the attention they need. On the other hand, if you only implement one or two ideas that work well together, you can lead them to success.

  • Do not quit your 8-5 job just yet:

The financial security of a permanent job should not be given up too early, even if an idea quickly leads to a profitable passive income in Kenya . For example, a rapid rise in our fast-paced world could also be reversed from one day to the next. So instead of giving up the secure job, one could first reduce the hours. You should make sure to continue having a secure stream of income for a while.

  • Pay all your debts before you invest:

In some cases, implementing your idea for passive income in Kenya requires an initial investment, eg in equipment, sound engineering or other things? At the same time, do you still have current loans from the bank , an open personal loan or other debts? Then you should pay them off first, because the interest that you pay on your loan is often higher than the return that you get from your passive income source at the beginning.

  • Don’t invest all the money in your idea:

In general, it is recommended not to invest all of one’s assets in money or an idea. There is always a risk and you could lose your money . This can result in financial bottlenecks. Accordingly, you should only invest money that is left over after your fixed costs, daily living expenses and after topping up a miscellaneous kitty.

  • Consider the effort required in your passive income idea:

As a rule, every opportunity for passive income is associated with a workload. Be it informing about investments and investments or programming an app. So if you want to generate passive income, you should expect to invest time and often money.

  • Consider and plan for the long-term rather than the short term passive idea:

Relying on short-term trends and then sitting back is often not a good idea. After all, passive income should pay off for you for years to come. Therefore, it can be advantageous to bet on continued demand, to keep up with trends or to occupy a niche.

  • Have a means to review and monitor the performance of your passive income in Kenya:

With a review of the finances, you can always check whether your passive income source is making a profit . If this is not the case even after some time, it may be worth adjusting the strategy.

  • Consider the taxation on your passive income idea in Kenya:

Passive additional income is sometimes taxable. Depending on the type of income you have chosen, the taxes will vary. For example, if you achieve returns from investments such as shares, investment funds or ETFs, the withholding tax will be due. With an exemption order, however, the capital gains can be achieved tax-free up to the amount of the savings allowance. Do you have to sell products , services or other income decided, the income tax is due.

  • Do not rely on seed capital, it is not necessary:

Of course it can be helpful for one or the other idea to have a little more seed capital available. However, this is not a prerequisite for your success. You can start with a savings plan to generate passive income and use the yield to implement your actual idea .

10 ideas to generate passive income in Kenya

There are many ways to earn passive income  in Kenya. Those who are not quite as creative and have difficulty finding ideas can be inspired by the following examples of passive income:

1. Rental income from real estate, cars, tools, tents, etc.

Rental income is a well-known form of passive income primarily associated with real estate . However , you do not have to rent out your entire house or apartment at once . Individual rooms, for example, are enough to generate passive income . Former children’s rooms can be rented to students or travelers via appropriate platforms. Even a little or unused car or tools such as a chainsaw, circular saw or drill press can be loaned to others for a fee. Don’t have a car, but have a garage or a parking space? Then rent it out this parking opportunity to others. Parking spaces are in great demand, especially in cities.

2. Train people in online seminars, webinars, and courses

Are you an expert in a specific field? Do you offer mental coaching for companies and teams? Then think about preparing your specialist knowledge digitally and letting it work for you. You can always sell the produced videos and thus continue to earn money passively after the work is done . In addition, recordings can be adjusted with little effort if there are changes to certain topics. Webinars also offer a good opportunity to build up passive income in Kenya- even when they are live. the effort to prepare the topics you only have once. However, you can hold the webinar itself for different companies or interested parties.

3. Write books and novels

Creative writing requires a lot of time, imagination and patience. However, once the book has been written, it can provide a passive side income in the long term – especially if it becomes a bestseller. You can also offer smaller e-books on specific topics in which you are an expert, for a fee, via a download and thus earn money passively.

4.  Sell audio recordings or explore a part-time music career

Even your own voice can be a passive source of income in Kenya. Record an audio book or relaxation aid, or start a podcast . You can also earn money with your own music in various ways. For example, it makes sense to offer the music for sale or on streaming services, or make it available to YouTubers and other web video producers as background music.

5. Explore print and design

If you’re artistically talented – whether online or offline – you can monetize your own art in Kenya. For example, design postcards, calendars, posters, T-shirts or bags that others can then print out themselves or buy with your design printed on them.

6. Become a part-time photographer

Do you like taking photos in your free time and do you have an eye for the details? Then you could build up a passive income in Kenya with your pictures by offering them on online platforms as paid stock photos.

7. Start a YouTube channel

With your own videos that you upload to your YouTube channel, you can earn money passively in Kenya through advertising.

8. Affiliate marketing in Kenya

If you have your own blog, website, YouTube channel or other internet presence, you can use affiliate marketing to earn passive income in Kenya. The best known are affiliate links to Amazon or b3tting sites. It works like this: You place a link to a specific product on Amazon. Once the product is purchased through your link, Amazon will pay you a commission.

9. Make your own app or software

Are you good at programming and have an idea for an app or program that offers users added value? Then this could be a good idea to build up a sustainable passive income in Kenya. The app does not necessarily need millions of downloads for this, several thousand or hundreds of thousands are enough for a passive side income. The same applies to software such as plug-ins or other programs.

10. Invest in financial securities in Kenya

You can invest your money in stocks, mutual funds, ETFs (Exchange Traded Funds) or other investments and generate passive income through potential returns. Stocks are securities issued by companies and traded on the stock exchange, such as the Nairobi Stock Exchange (NSE). As an investor, you then become a co-owner of the company. With investment funds and ETFs, you should not invest in one fund such as stocks, but in several. This allows you to reduce your risk (diversification). The main difference between funds and ETFs is that funds are actively managed by fund management and ETFs passively replicate an existing index on the stock exchange. This makes ETFs much more cost-effective than mutual funds. A higher starting capital can be an advantage for your investment, but it is not necessary.

Passive income in Kenya overview

If you have read this far, you are aware of most of the investment options that will give you passive income in Kenya. Some of this options can be pursued successfully by a few people. Some require talent while others just need dedication and hand work. What works for you will entirely depend on you.