By now, most Kenyans have understood the importance of making passive income. This is because of the financial freedom and comfort that you realize through this form of income. The opposite of passive income is active income where you have to be actively involved to make it. This article will focus on the top 20 ways to make passive income in Kenya.

Top 20 Best New Business ideas in Kenya

Passive income does not require you to use a lot of energy and time to make it. Mostly, you just need to make a one-off investment that enables you to enjoy income for a long time in the future. There are many sources of making passive income in the country.

However, some are more common than others. The method to use in making this type of income depends on various factors such as capital levels, skills, and location.

Hence, you need to factor in them when deciding on how to make passive income. Below is a list of the top 20 ways to make passive income in Kenya.

Advantages of passive income in Kenya

Financial freedom– Through passive income, you can achieve financial independence and stability without having to work all day for it. This is because you earn even when you are sleeping.

Early retirement– It is not a wonder to find most people working up to their retirement age. This is because they still need to earn active income for survival. However, if you can generate enough passive income at a young age, you have the option of retiring early because your finances are sorted.

Focusing on other important matters– Passive income enables you to focus on other important matters such as family and hobbies. This is possible as you have more time and you don’t have to work long hours a day in and day out to make an income. In return, this results in a happier and more fulfilling life.

Less reliance on the paycheck– Most people on active income depend on the paycheck to sort their financial needs. This dependency makes them work all day as without it they will face financial difficulties. However, with passive income, there are no limitations to earnings whether your work or not.

Top 20 ways to make passive income in Kenya

Now that you know the benefits of passive income, let’s look at the different ways to make it.

1.  Stock/Shares Investment

This is one of the most common ways to make passive income in the country. Shares investment involves buying shares through the Nairobi securities exchange. Some of the benefits you get through this investment include getting regular dividends and share price gain. Learn more on how to buy and sell shares in Kenya.

The benefit of buying shares is that you don’t have to do much after buying them. You only have to wait and reap the benefits in the future. This is an investment that can make you passive income for decades as long they are performing.

However, this form of investment carries some form of risk if the company is not performing well. Hence, you should do adequate research to ensure you are buying the right shares. Below is a breakdown of the factors to consider before buying shares in Kenya.

2.  Real Estate Investment

Real estate is the most common form of investment in the country mainly because people understand the benefits. It involves investment in land and related constructions.

It is among the safest investments since it always appreciates. It is also easy to do as no special skills are needed to buy land. In case of challenges, you can always engage professionals such as lawyers for guidance.

Some of the most common sources of real estate passive income are rental and sales income. This comes through building houses for rent both residential and commercial such as offices. However, you can also buy land and sell it after value appreciation.

Just like the first source, once you have the rentals ready, you don’t need too much other than collect rent income regularly such as monthly.

The only downside with this form of investment is that it is capital intensive making it harder to get if you don’t have huge resources. There is also a lot of fraud in this industry making It necessary to do enhanced due diligence when investing. Learn more about real estate investment in Kenya.

3.  Money Market Funds

A money market fund involves investing with a mutual fund. This is an entity that invests for you in short-term and liquid investment options. Money market fund entities work like an investment vehicle on your behalf.

Your job is to give them your money which they put into income-generating investment opportunities. MMF is a liquid investment option that enables you to withdraw your investments on short notice. They also pay your interest monthly depending on the market performance.

Money Market Fund in Kenya

A good performing money market fund in Kenya pays an average of 10% interest per month. Some of the top MMFs include CIC, Britam, and Cytonn.

When joining an MMF, some of the key factors to consider include reputation, past performance, and leadership.

4.  Blogging

Access to internet services among Kenyans has made blogging one of the top sources of passive income.  With over 3,000 active blogs in the country, this is fertile ground to make income as others are already enjoying the benefits.

To become a blogger, you need to create a blog by buying a domain name and Webhosting services. You can get through the various Webhosting companies in the country. It costs less than 10,000 to start a basic blog making it affordable to almost everybody.

However, there is also an option of starting with a free blog such as WordPress if you don’t have resources then upgrade over time. Below is the process of How to start and Run a Blog in Kenya.

Becoming a successful blogger requires you to have a passion for writing and patience. This is because it takes an average of 1 to 2 years to start making good money from blogging. However, once you have enough traffic and money starts coming, it becomes a great source of passive income.

There are various ways to make money through blogging such as running ads such as Google AdSense, affiliate marketing, and direct marketing.

5.  Investing in Cryptocurrency

Cryptocurrency has become a top choice financial investment option since its launch a decade ago. It is a new form of digital currency that runs on blockchain technology. As digital money, you can either use cryptocurrency for transactions or as investment assets.

Some of the most common cryptocurrencies in the market include Bitcoin, Ethereum, and Dogecoin. For you to start investing in these assets, you need to open an account with a crypto trading broker such as Binance.

However, this is a very risky market due to price volatility increasing the potential of loss. To invest successfully, you need to have good market knowledge and experience.

How to Buy Bitcoin on Binance in Kenya Using M-PESA

However risky the market is, it is as well highly rewarding if you get it correct. Some ways to make money through cryptocurrency include buying low and selling high.

6.  Sacco Dividends

Saccos are familiar with most Kenyans due to their prominence across the country. They have become an investment choice for millions who are now enjoying various benefits that come with them.

One of the biggest benefits of investing in a sacco is dividend payments. These are paid yearly based on your savings. Saccos pay both dividends and rebates based on the type of investment. Dividends are paid on share capital while rebates are paid on share deposits.

Some of the factors to consider when joining a Sacco include the rate of dividend payments, regulation, and performance. On average, good saccos pay at least 10% for rebates and 15% as dividends. Learn more on why you need to Join a sacco in Kenya to understand other benefits.

7.  Starting a YouTube Channel

YouTube has become a source of income for hundreds of Kenyans who can create content on the platform and attract viewers. Some of the examples include comedy content, financial content, and travel content.

The more viewers you get on the platform the higher the money you make. Below is a breakdown of how to make money on YouTube in Kenya.

YouTube pays you through a process known as monetization. However, there are some requirements to get monetized such as having over 1,000 subscribers on your channel and 4,000 watch hours.

Once monetized, you start earning based on your content viewers. To attract more viewers, you need to create content that is quality and relevant.  You also need to have good camera and video editing skills.

There are also other ways you can make money on the platform such as sponsored marketing or selling products.  Making passive income on YouTube comes from the fact that the content you create can earn you money in years to come as long as people are watching it.

8.  Affiliate Marketing

Affiliate marketing is a form of digital selling that involves pushing for sales on various online platforms such as social media sites or websites. It is easy to become an affiliate marketer as long as you have a huge following base on these sites.

You make money in affiliate marketing through every successful sale made. It can either be in form of a percentage of the sales or a fixed amount. To become an affiliate marketer, you have to register with a company offering this service. Some of such companies in Kenya include both Safaricom and Jumia.

Learn more on how to succeed in affiliate marketing in Kenya. To make more through affiliate marketing, you should partner with better-known brands and those paying higher rates.

9.  E-book Publishing

The increase in internet access and adoption has made it possible to publish books online. These are known as e-books. It is easier to publish and sell online than doing it in the traditional physical form.

Although selling online is easier, you have to take the time in creating a book that is of high quality and relevance. This requires a lot of research and knowledge to put together.

Top 20 Best Saccos to Join in Kenya

Selling E-books is a great source of passive income as you only have to publish create and publish them. After that, you can enjoy the benefits for the rest of your life as long as the book is selling.

Some of the most common sites to sell your e-book include Amazon and Kobo.

10.  Government Bonds Investment

The government of Kenya regularly issues bonds as a way of raising money to fund various activities such as infrastructure development through the central bank of Kenya.

These bonds vary based on the interest rate and duration. You can either invest in short-term bonds that have a maximum tenor of less than a year or long-term ones that could go up to 30 years.

The choice of the bond to invest in depends on your investment preference. To start this process, you need to have a CDS Account and place a bid during the auction. Mostly, the auction happens monthly with the notice placed on the Central Bank of Kenya Portal.

Some bonds such as infrastructure ones attract no taxes ensuring the income remains high. The government pays bong interest on a half-yearly basis. Hence, after investment, you are sure to get interest income every 6 months until maturity without doing much. Learn More on How to Invest in Kenya Government Bonds.

Government bonds are also an almost guaranteed investment as it is nearly impossible for the government to default.

11.  Airbnb Investment

Airbnb Is a new form of the rental business that relies on technology to connect both the seller and the buyer. It has revolutionized the traditional accommodation business by allowing you to rent out space that you are not using to guests.

Thousands of Kenyans are already doing this enabling them to make money in the process. As a top destination for hospitality and tour services, there are immense opportunities for this business in the country.

To get started, you need to make an application with AIRBNB to list your property. If successful, Airbnb proceeds to list it on their site making it possible for customers to start renting.

Getting this listing requires you to meet the set standards by the platform. Airbnb has brought about flexibility and convenience in the rental business both for the customer and service provider.

The amount to charge depends on various elements such as the location and size of the property. On average, a standard space ranges between 2,000 to 5,000 shillings to rent per night. However, this could go up or lower depending on the earlier factors.

12.  Podcasting

Podcasting is the creation of digital audio files that can be downloaded on the internet. This trade is still new in the country. However, many people are starting to venture due to the immense opportunities it offers.

To become a successful podcaster, you need to have the right tools such as recording equipment. You should also target and create relevant and quality content for your audience.

Some of the top ways to make passive income in Kenya through podcasting include direct sponsorships and affiliate marketing. To get sponsorships, you need to have a big number of listeners to attract sponsors. A factor that takes time and requires patience to achieve.

However, once you actualize and get the right market, it becomes a good avenue to earn passive income in Kenya.

13.  Social Media Influencing

By now, the majority of us know about social media influencing. This is because we have hundreds of Kenyans doing it daily. Social media influencing entails using social media platforms such as Facebook, Instagram, and Twitter to market products and services.

How to Succeed in Social Media Marketing in Kenya

To succeed in this, you have to be active in social media, create relevant content and increase your followers and subscribers.

Through influencing, you can partner with different companies to market them or their products at a fee. The more you do this, the more clients and hence the higher the income.

14.  Music Creation

If you have a music talent, you can turn it into a passive income-making activity through the creation and selling of songs online.

There are many places you can market your music such as YouTube and Spotify. The only work you need to do in this activity is during music creation. However, after posting it on these sites, you are sure of making money as long people are buying and listening or watching it.

The more music you make, the higher your income rises. Other than monetizing your music online, you can also make money through performances at events and functions.

15.  Dropshipping

This is a form of business for online retail stores whereby the retailer doesn’t need to manufacture or fulfill the order. It is done by the manufacturer and the fulfillers.

Your job as a dropshipper is to design your products and market them. Once the customer makes an order; the manufacturer takes over in making it and then a fulfiller does delivery to the customer.

This makes it easier by eliminating the challenges that come with handling and delivering goods. The passive income element of this business is that after designing and marketing your products, you can now wait to enjoy the sales. This can go on as long as customers are buying your products.

To succeed in this business, you need to sell products that are relevant to your customers. You should also have good design skills. Finally, you need to have a platform to market them such as having an active social media page or website.

16.  Photography

Here comes a great way in the list of top 20 ways to make passive income in Kenya. Photography entails taking photos and pictures and then selling them online.

It works better if you have a passion and interest in photography. To get started, you need to register with some of the many online photography selling platforms such as Alamy, Shutterstock, and Getty images.

You should also invest in photography tools such as a camera and editing software. Your key job is to create quality photos and post them on these sites where potential customers can find them. Marketing your work will also assist to increase sales resulting in more income.

After posting the photos, you can earn passive income as long as customers buy them. A situation that can last a lifetime.

17.  Franchising

Franchising involves allowing other businesses to use your business brand and ideas at a fee. This happens when you have a great business brand and ideas with a wide-reaching customer base.

Instead of investing in expansion, you can allow other business people to use your brand in running their business and benefit through earning franchising fees. The fee can either be time-based or a standard rate.

Through franchising, you make passive income without the need to be directly involved in running the business. As long as the brand is running, you will always make income.

However, it is not as easy as it sounds because you have to spend a lot of time and effort creating a good business brand that other business people are willing to pay for and use.

18.  Creating Applications

If you are good at software development, you can create applications and monetize them on various available Play stores both on mobile phones and personal computers.

The app market has increased tremendously as more people acquire these gadgets. Some of the most common stores you can monetize your apps include the Google play store, iPhone play store, and windows app store.

Some of the ways to make money through creating apps include running ads, getting sponsorship, and selling premium subscriptions.

Success in creating apps requires you to make relevant apps that customers can use. You also need to market your app to create awareness among potential customers.

As long as customers are using your app, you will always make a passive income. Some of the most common in-demand apps in the market include games apps and financial apps.

19.  Fixed Deposit Investment

Various financial institutions offer fixed deposit investment options in Kenya. These include both banks and saccos. A fixed deposit investment involves putting your funds with a financial institution for a specific amount of time to earn a specific rate of interest.

What You Need to Know About Fixed Deposit Investment in Kenya

Hence, you have to research to ensure you are fixing with the best institution available in the market. The advantage of investing in a fixed deposit is the ease of planning as you know beforehand when you will receive your investment and of how much.

The rate of default is also minimal as these financial institutions are well-regulated and stable. Earning passive income through a fixed deposit is because you don’t have to do much after investing.  Learn more on the Fixed Deposit Investment in Kenya.

20.  Renting Your Car

Closing the list of top 20 ways to make passive income in Kenya is the car rental business. This business has become lucrative in the country due to the huge demand for these services. There are numerous car rental companies that you can partner with to rent your car on your behalf.

One key advantage of this business is that you can rent almost all types of cars. However, the amount of income will differ based on the size of the car and renting service.

This is an easy way to make passive income as you don’t have to do much as long as your car is in business. Normally, you agree with the rental service provider to pay you a certain amount of money per month.

Below is a recap of the Top 20 Ways to Make Passive Income in Kenya.

  1. Stock/Shares Investment
  2. Real Estate Investment
  3. Money Market Fund
  4. Blogging
  5. Investing in Cryptocurrencies
  6. Sacco Dividends
  7. Starting a YouTube Channel
  8. Affiliate Marketing
  9. E-book Publishing
  10. Government Bonds Investment
  11. Airbnb Investment
  12. Podcasting
  13. Social Media Influencing
  14. Music Creation
  15. Dropshipping
  16. Photography
  17. Franchising
  18. Creating Applications
  19. Fixed Deposit Investment
  20. Renting Your Car


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