How to Save Money on a Low Income in Kenya

Saving money on a low income can be thought to be unachievable, especially with the rising expenses in Kenya. But the truth is, even on a lean budget, you can make some small changes that allow you to take charge of your finances. The secret is not earning more, it's spending smart. Whether you’re a student, job seeker, mama mboga, or just trying to make ends meet, here are seven practical ways to save money on a low income in Kenya.

1.Track Your Spending

The first step is to understand where your money goes. Most people don’t realize how small daily expenses, like snacks, data bundles, or daily trips, add up over time. Start by monitoring all of your expenses for a week or a month. Keep a notebook with you or utilize the budgeting apps available such as Monefy, Wallet, or Spendee. Monitoring makes you conscious of the wastage and gives you control to cut back where you should. If you do not know where your cash is being spent, you'll never have control over it.

2. Create a Simple Budget

Once you have monitored your spending habits, create a budget from your actual income and expenditure. Use a formula like the 50-30-20 rule:

- 50% for needs (rent, food, bills), 30% for discretionary spending (airtime, clothing, outings), 20% for savings or debt repayment. If you earn a very low income, adjust the percentages but still include savings, even KSh 100 a week. A budget dissuades impulse buying and keeps things in order.

3. Prepare at Home and Take Meals

Eating out is a massive silent money murderer. Forming a habit of eating out for lunch at KSh 200 a day amounts to over KSh 6,000 a month! It is both cheaper and healthier to prepare food at home. Invest time in meal planning, buying in bulk, and packing your own lunch or snacks. Preparing your own food has the potential to save you thousands a month, which you can invest in savings or emergencies.

4. Buy Smart and in Bulk

Visit open-air markets like Gikomba, Wakulima, or Toi Market instead of supermarkets. It is less expensive and you can negotiate. Buy foodstuffs like maize flour, rice, sugar, and vegetables in bulk, it is less expensive per unit. Also, buy on a monthly basis instead of daily to avoid impulse buying. When buying clothes and household items, buy mitumba or second-hand instead of new or branded ones that have little difference in quality at an increased cost.

5. Avoid Mobile Loans Unless You're in an EmergencyFuliza, Tala, M-Shwari, and Branch apps are handy, but their interest rates are outrageous. A KSh 500 loan will cost you a lot more by the time you pay back. As a substitute for relying on instant loans, build a small emergency fund by saving something little every time. Save KSh 20 to 50 daily in a lock savings account or mobile wallet like KCB MPESA or Airtel Money Lock Savings. You will, in time, have a buffer that insulates you from debt.

6. Use Public Transport or Walk More

Transport is a sneaky expense. Uber and bodaboda rides are not costly on a per-ride basis, but they can quietly drain your money. Wherever possible, use matatus, carpool, or walk short distances. You'll not only be saving money, but your health too. If you make daily commutes, plan your routes and eliminate unnecessary trips to save on fares.

7. Start Small, Habitual Saving Habits

Do not delay saving when you will be earning more. Save now with what you have. Use tools like M-Shwari lock savings, a piggy bank, or a chamaa. Automate savings where you can, move money to a savings account as soon as you get income, even if it is just KSh 100. It is not the amount you save at first that matters, it is the habit.

It is not easy to save money while earning a low income in Kenya, yet it is achievable. It requires self-knowledge, budgeting, an end to wasteful consumption, a lack of debt, and regular saving habits. Every shilling matters. Even if you're saving only KSh 50 a week, that's KSh 2,600 a year, which is much better than nothing. Begin today with what you have, and your future self will appreciate it.