1. Money Market Funds (MMFs)
Why it’s good: Low risk, highly liquid, and pays daily interest.
- Top funds:
- CIC Money Market Fund
- Sanlam MMF
- Madison MMF
- Returns: 11–14% p.a.
- Ideal for: Seniors looking for passive monthly income.
✅ 2. Treasury Bills & Bonds (via CBK)
Why it’s good: Government-backed, guaranteed returns.
- Options:
- Treasury bills (91, 182, 364 days) – short-term
- Treasury bonds (2–25 years) – long-term
- Returns: 10–17% depending on tenor
- How to invest: Open a CDS account via CBK or bank
- Ideal for: Seniors who want secure long-term income
✅ 3. Dividend-Paying Stocks (Blue-Chips)
Why it’s good: Regular dividends, potential for capital growth.
- Top picks:
- Standard Chartered (SCBK)
- BAT Kenya
- NCBA Bank
- Dividend yields: 11–15%
- Note: Consider using a licensed investment advisor.
- Ideal for: Seniors with some market experience
✅ 4. Real Estate Investment Trusts (REITs)
Why it’s good: Earn rental income without managing property.
- Example: ILAM Fahari I-REIT (listed on NSE)
- Returns: Varies (target ~8–10%)
- Ideal for: Seniors interested in real estate without the hassle
✅ 5. Pension-Based Annuities (Retirement Income Plans)
Why it’s good: Lifetime income based on your pension savings.
- Providers: Britam, ICEA Lion, Old Mutual
- Types:
- Immediate annuities (start paying immediately)
- Deferred annuities (start later)
- Ideal for: Retired individuals with pension lump sums
✅ 6. Fixed Deposits (FDRs) with Tier 1 Banks
Why it’s good: Stable, predictable returns.
- Banks: KCB, Co-op Bank, NCBA, Absa
- Returns: 7–10% p.a. (negotiable)
- Ideal for: Seniors who want zero risk and capital protection
✅ 7. SACCO Fixed Deposit Accounts
Why it’s good: Higher interest than banks, community-based.
- Returns: 10–12% p.a.
- Examples: Mwalimu Sacco, Stima Sacco, Harambee Sacco
- Ideal for: Seniors in or retired from public service
💡 Pro Tips:
- Prioritize liquidity – emergencies can arise at any time.
- Avoid high-risk ventures like crypto or forex trading unless well-informed.
- Consult a licensed financial advisor before committing large sums.
- Diversify across 2–3 low-risk options for stability and better income flow.