NAIROBI, Kenya, Jul 28 – Many Kenyans could be delaying their journey to financial independence by confusing saving with investing, with financial experts warning that the two serve different purposes despite often being treated as interchangeable.
Speaking on Capital in the Morning, I&M Capital Head of Investment Advisory Sameer Raja said saving helps build a financial cushion for emergencies and short-term needs, while investing is designed to grow wealth over time by putting money to work.
He likened the difference to owning a parked car versus using the same vehicle to generate income.
“If you have a car parked in your driveway, that’s saving. Investing is taking that same car and using it as a taxi or an Uber. It’s doing something for you to create long-term wealth,” he said.
Raja said one of the biggest myths discouraging many Kenyans from investing is the belief that it requires substantial wealth. He noted that investors can begin with as little as Sh5,000, arguing that consistency and starting early matter more than the size of the initial investment.
He also challenged the perception that investing is inherently risky, saying investment decisions should be guided by an individual’s financial goals, time horizon and tolerance for risk rather than fear or speculation.
According to Raja, Kenya’s investment landscape has expanded significantly, giving retail investors access to products ranging from money market funds, unit trusts and fixed-income securities to shares listed on the Nairobi Securities Exchange, property and offshore investments.
He noted that growing financial literacy and digital platforms have made it easier for ordinary Kenyans to access investment opportunities that were previously available mainly to institutional or high-net-worth investors.
Among the products attracting growing interest are investments denominated in foreign currencies, particularly the US dollar, as well as global equity funds that give local investors exposure to international companies and emerging sectors such as artificial intelligence.
Raja said investors should begin by identifying what they are saving for—whether education, home ownership or retirement—before selecting investment products aligned with those goals instead of chasing the highest returns.
To improve accessibility, he said I&M Capital’s On The Go (OTG) mobile application allows customers to open an investment account, fund it, buy or redeem investments and access statements digitally within minutes.
The company will also host an investment town hall at Strathmore University on Thursday to discuss wealth creation, investment opportunities and Kenya’s economic outlook with both current and prospective investors.
