Savings: Where to safely save money in Kenya.

Where to safely save money in Kenya? Now I have been receiving this question from different people for some time. Where should I safely save my money and earn something on the side?  The question I usually ask is whether it is long term or short term. As well as do you want easy access to the savings. If this is a question you are asking then you are in the right place. Here is a list of places you can safely save money while in Kenya.

8 places you can save your money in Kenya.

  1. In a piggy bank

A piggy bank is a small container, usually in the shape of a pig, where people save coins and notes at home.

a person saving in a piggy bank forsinking funds
The advantages of saving in a piggy bank are
  1. Easy to access and save because it is readily at home.
  2. No ledger fees paid that is it is free to save.
Disadvantages of a home piggy bank
  1. No interest is earned on savings. What you put in is what you’ll get.
  2. The safety of your savings is as safe as your home. If a thief breaks into your house your savings are as good as gone. If there is a thief in the house your money is not safe


This is a paperless banking service offered by Safaricom to its clientele

.m-shwari FAQs

 Pros of saving in mshwari.
  1. Easy to access and save via mobile phone.
  2. No paperwork to file to start saving.
  3. 6% interest earned per annum on savings.
  4. No charges for the movement of money in and out of mshwari.
  5. Interest earned is paid out quarterly, unlike in banks where it is paid out per annum.
Cons of saving in mshwari

Sometimes the system may fail and access to your savings is delayed. This happened to me once last year.

  1. Kcb mpesa

This is a savings and loans service for registered and active mpesa customers.

There are two types of savings accounts in KCB mpesa: fixed deposit savings account and a target savings account.×280&!2&btvi=1&fsb=1&xpc=nmB826C3Oh&p=https%3A//

In fixed deposit savings account you lock in your savings for a specified period of one to 12 months. During this time your savings will earn 6.3% interest per annum. This type of savings account requires a minimum deposit of ksh. 500. However, if you withdraw your savings before the selected time you will not earn the interest on the account.

A target savings account has more or less the same terms and conditions as a fixed savings account. However, a target savings account allows you to save a specific sum of money. For example, you can deposit ksh.500 but your target is ksh.5,000. You will be topping up this amount until you achieve your target of ksh.5,000.

  How to activate KCB m-pesa.
  1. Go to your mpesa menu
  2. Select loans and savings on the menu.
  3. Select KCB mpesa then click on activate.
  1. Savings account

A savings account is a bank account where you keep your money and earn some interest.

  1. Savings app

These are mobile applications mostly by financial institutions used to provide saving, lending, and budgeting services. Such savings apps in Kenya include timiza savings app by Absa ( previously Barclays) and the NCBA loop app by NCBA bank. These two apps can be downloaded via google play or the Apple store for iOS users.

  1. Money market

This is a low-risk type of savings and investment place. Where your savings are invested in short-term government securities, commercial paper, and deposits. The interest paid on your savings ranges between 4 to 10% per year. This interest is often paid into your account.

To learn more about money markets click the link below.

Money market fund investments in Kenya

  1. Chama

This is an informal group of people who save together towards a common financial goal.

  1. Merry go round.

This is a small group of people who contribute an agreed-upon sum of money regularly, daily, weekly, monthly, etc. This sum is usually paid out to one individual every time the sum is collected.

In conclusion.

There are many places where one can save money in Kenya. Although some places are safer than others, no place is 100% safe. Thus the law on risk and reward. Low-risk low reward, high-risk high reward. Let’s way our risk tolerance when choosing a savings platform. Which savings place would you like us to dig into?

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