With the new year already here, there are key investment areas that are most promising in the country. Hence, this article will aim to explain the top investment opportunities in Kenya in 2024.
1. Tourism
Tourism in Kenya is on a rebound after bracing low times with the outbreak of COVID-19. This is notable through the resurgence of tourist’s arrival helping make it attractive for investors once more.
An increase in the number of tourists combined with the weakening of the Kenyan shilling are the top motivation drivers for investment in this sector. Kenya is also home to many tourist attraction sites such as numerous national parks and white beaches.
There are many areas in the tourism sector that you can invest in. Some of these include;
- Setting up a hotel
- Offering tour guidance services
- Transportation services
The specific area to invest in will depend on several factors such as expertise and capital. However, whichever path you choose, good returns are awaiting.
2. Agriculture
In 2024, Kenya will remain a food-deficient country. This means that the local production cannot satisfy the existing demand hence creating opportunities for farmers.
The fast-growing population is an indicator that demand for food and farm products in the country will continue to rise.
Farming is a big industry that you can join at various levels. You can join it either as a farmer, supplier, or distributor. As a farmer, you are required to have land and a target to farm those crops that are in demand. Some of the most in-demand farm products in Kenya include Maize, Avocado, and trees.
One advantage of farming is there exists a ready market locally and hence you will not struggle to monetize your products.
If you invest as a supplier, target to supply various farm products such as fertilizer, seedlings, and machinery. There is also a huge market for suppliers as millions of Kenyan farmers become your potential customers.
3. Real estate
Kenyans’ obsession with real estate has made this industry a near-success guarantee for investors. The growing population also continues to drive real estate demand higher in the country.
Hence, you only need to identify a good area that is in demand or has the potential to become a hot choice in the future. In real estate, you can either invest in land or do construction. However, construction will require more capital to actualize.
If you have limited capital, you should target investing in less expensive areas. The goal is to buy low and sell higher to book a profit. This done repetitively will result in more profits and with time can enable you to scale.
The only challenge with real estate investment is rampant fraud. Hence, you should always take extra care to avoid falling prey.
4. Technology sector
As technology evolves, so is the demand and use. Almost every Kenyan uses technology. As an investor, it will be your job to determine whether you want to invest in hardware or software.
Hardware involves investing in physical technological tools such as computers, phones, and servers. On the other hand, software involves investing in programs that help the hardware to run. Investing in software requires you to have skills in areas such as coding and programming.
With Kenya still at the infancy level when it comes to technological adoption, immense opportunities to tap into this sector remain.
However, you have to keep tabs on the changing technological landscape to maintain relevancy.
5. Healthcare provision
The Government is pumping a lot of resources to improve the state of healthcare in the country. Some of these include the increase in budget allocation and also the review of the National Health Insurance Fund.
As an investor, you can tap into various areas within the healthcare sector. Some of these include;
- Opening a hospital
- Starting a Pharmacy
- Manufacture of Medicine
- Starting a Healthcare training school.
All these are potential areas that will have good returns. However, you need to have the capital and specialized skills to get into the healthcare business. For the skills part, you can seek partnerships with a professional to get started.
6. Manufacturing
The reason why manufacturing is on this list is the deliberate and sustained government efforts to support the sector. Some of the interventions such as tax breaks make it an ideal area to invest in.
Kenya is a big importer and hence, if you can manufacture goods locally with competitive prices, there will be profits to make.
Manufacturing requires investment in the right machinery and also have the skills to get the job done. There is an unlimited list of what you can manufacture locally. This includes items such as household items, construction materials, electronics, and farming items.
Ensure to set up your factory in an area with ample space and a good transport network to accommodate heavy transport vehicles.
7. Investment in shares
Most of the counters in the Nairobi Securities have been falling in the last year. Hence, as the economy stabilizes, there are high expectations the shares will start rising.
Share investors make money by buying low and selling high. Hence, now that share prices are low, it’s time to get in and hopefully sell higher in the future.
Some of the shares have lost as much as 50% of value making them a top choice to target. When investing in shares, you should consider several factors such as;
- Company leadership
- Previous performance
- Government policies
- Shares price.
To invest in shares in Kenya, you need to open a CDS account where you fund the investing money.
8. Investment In Cryptocurrency
Let me start by putting a caveat that investing in cryptocurrency is a high-risk highly rewarding business. This means you need to fully understand the market and invest only what you are willing to lose.
Cryptocurrency assets are still new globally and this makes them a top choice for investors. Not many people have embraced them yet. However, if this were to happen, early investors would make huge returns.
Some of the common cryptocurrencies in the market include Bitcoin, Ethereum, Dogecoin, and Solana. However, there are thousands more that you can try.
To start investing in these assets, you need a broker account that will help facilitate buying and selling. The advantage of these assets is that you can invest as little as 1,000 shillings.
