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    28Jan, 2024
    Infrastructure Bond Offer – February 2024
    Kenya Insrustructure Bond - February 2024-2

    The Central Bank of Kenya has announced a Treasury Bond offer - Ref IFB1/2024/8.5. This is an infrastructure bond. The details of the bond are as follows;

    • Government is looking to raise Ksh 70 Billion. 
    • The tenor of the Bond is 8.5 years and will be redeemed on 9th February 2032
    • Interest on Bond is tax free 
    • Minimum investment is Ksh 100,000
    • Interest will be paid semi-annually
    • Expected interest (coupon) is around 20%
    • Bids must be placed on DhowCDS
    • Eligible bids will need to be placed by 10am on Wednesday 14th February 2024
    • Those who will have successfully bid will receive confirmation of success on Friday 16th February 2024
    • Successful bidders will make payment for Bond by latest 19th February 2024 by 2pm
    • Payment for bid can be made via bank RTGS of deposit bankers check to CBK office

    You can get full details of the Infrastructure bond from CBK website here

    25Jan, 2024
    The Quest For Financial Success and Freedom
    elegant-businessman-with-victory-pose

    Why Pursue Financial Success?

    Do you desire Financial success? Well, this is for you.

    Financial success can be defined as achieving what you hope for or aspire to have financially. Your financial aspirations may change as you go through life. Like you, most people have financial dreams or goals that they hold close to their hearts and earnestly desire to accomplish. These dreams may include owning a home, retiring young, travelling the world, purchasing a new car, giving towards charitable activities, joining politics, building rental properties and the like. Each person has what she/he desires to achieve financially in life. It is these financial desires and aspirations that form the basis for your financial success.  

    In as much as most of us will set out in life hoping to achieve these financial dreams and desires, the reality is that very few people ever get to attain their financial desires.

    Research on Retirement Statistics

    According to the findings of research carried out on the Kenyan retirement environment, out of 100 university graduates who get reasonable employment after college;

    • Only 1 will be wealthy at the point of retirement
    • Only 4 people will maintain their standards of living after they retire (They can afford a lifestyle after retirement similar to what they had when employed)
    • 15 people will take a significant reduction in terms of their living standards after retirement but will be able to survive financially. In other words, they will either move to a cheaper neighbourhood such as going upcountry or spend less for entertainment, holidays and other expenditures.
    • The remaining 80 people (80%) will depend on the government for survival, depend on their children, take on another job, and will be poor after they retire or will be dead.

    The reality is that all these people start life confident that they will become rich. So, why do most people end up not being financially successful?

    Why Most People Never Get to Financial Success

    • Many people have never defined their financial goals and have no plan to get them to their financial aspirations. Their investments are therefore not focused towards any destination.
    • Many people do not understand the various investment opportunities that are available to them to enable them to grow their finances towards meeting their financial goals.
    • Many people do not believe in themselves enough to set and pursue their financial dreams successfully and will generally lose heart and give up when a few setbacks come their way.
    • Many people lose time and money in risky investments that promise much but never pan out.
    • Most people don’t invest consistently but rather invest only when opportunities arise. This haphazard kind of investing leads to the loss of valuable investment time.
    • Many people have bad investment experiences and this makes them afraid or unwilling to invest again.


    How to Avoid the Statistics

    For us to overcome many of these investment mistakes and increase our odds of becoming financially successful, we will need to have an understanding of how the investment world works. We will also need to write down our financial goals and have a plan of how we will fulfil these goals. We will then need a model or system to keep us disciplined and focused on our plan.

    #retirement kenya #financial success #nairobifinancialconsultant #kenyawealthmanagement

    22Jan, 2024
    Tsavo Real Estate Company
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    Tsavo Real Estate is a company established in 2016, and founded by Emily and Leonard Mcharo.  They specialize in constructing small-sized houses, including bed-sitters and one-bedroom homes, targeting investors looking to make a return from rent.

    Leonard and Emily’s Story

    Emily and Leonard Mcharo, the founders of Tsavo Real Estate, have an inspiring back story. They began their marriage with very little money and, like many couples, lived from hand to mouth. However, in those early years of marriage, they set a goal to become financially free within 10 years.

    According to their narrative, achieving this goal required them to forego many of life's pleasures to consistently invest in their dream. They leveraged their expertise, with Leonard being an architect and Emily a financial analyst, to develop student hostels. The project took nine years to complete and with its completion, they were financially free! Emily quit her job as a banker and Leonard quit his employment as an architect.

    With their financial freedom, they established Tsavo Real Estate to build affordable rental properties that they sell to investors. They aim to help others achieve financial freedom as well, by providing them with a reliable source of passive income through their real estate investments.

    Completed Projects

    To date, the company has completed five projects, which are Tsavo Studios in Embakasi, Coral Bells in Thindigwa, Royal Suburbs in Roysambu, 90 Degrees in Embakasi, and Tsavo Skywalk in Wanyee Road and Tsavo Sunset in Thindigwa. The average price of a bed-sitter is Ksh 1,800,000, while the average price of a one-bedroom house is Ksh 2,800,000. The expected rent from the properties is Ksh 12,500 - 15,000 for a bed-sitter and Ksh 18,500 - 20,000 for a one-bedroom.

    Projects Under Construction

    Tsavo Real Estate has several projects currently under construction. These include Royal Suburbs Phase 2, 3, and 4 in Roysambu, Tsavo Fedha, Tsavo Rising in ILRI, Tsavo Step-up in Satellite Estate, Tsavo Premier, Tsavo Sunset 2 in Thingigwa, Tsavo Fedha in Fedha Estate, Tsavo Divine at USIU, and Tsavo Stanley in Kiambu.

    According to the company, these projects are set to be completed within 3 years. The construction of these properties will provide investors with new opportunities to invest in the real estate market.

    Track Record and Performance

    Tsavo Real Estate has a strong track record in terms of project timings, financial integrity, and developing projects as per promise. Given that the return on investment is between 7% and 9%, this is a good investment option that offers considerable passive income.

    Risks Associated with the Projects

    Tsavo Real Estate Company sells its houses off-plan, which means that investors pay upfront for the homes before they are built. This approach is common in the real estate industry as it allows developers to secure financing for construction and buyers to lock in prices for new homes.

    However, it's important to note that when buying off-plan, there is a level of risk involved. One of the main risks is that there is no government regulation for off-plan projects, which means you have to trust the company to deliver the houses as promised. In some cases, there have been large real estate companies in Kenya that have sold off-plan homes and failed to deliver on their promises to their clients.

    In Conclusion

    Tsavo Real Estate has maintained a solid track record of delivering homes as promised. Their financials are also good and their philosophy is promising. Payment of the homes is also done as the project progresses thus minimizing risks. We, therefore, advise that purchasing properties with Tsavo Real Estate is reasonable as a pathway to creating your passive income.

    18Jan, 2024
    6 Myths about Investments That You Should Not Believe
    Stacks of coins arranged in a bar graph, Saving money concept. 3D illustration

    Do you want to be successful in investing? One of the things you will need to do is to differentiate between facts and myths. There is a lot of misinformation in the investment world and this has led to many losing their hard-earned cash to fraudulent investment opportunities or avoiding investing altogether.

    Let us look at some of the common investment myths.

    1. I Do Not Have Enough Money to Invest

    A common myth about investing is that you need to have a lot of money to start investing. This is not true. The amount needed to get started in investing in most of the investment products is low thus allowing anyone to be an investor. Below are the amounts needed for some of the investment products;

           - Shares (NSE Stocks) – As low as Ksh 500.00
           - Mutual Funds (Unit Trusts) – Between Ksh 500.00 and 1,000.00 depending on the fund           manager
           - Treasury Bonds – Ksh 100,000.00


    1. Investment Success is About a Big Break

    Many individuals in Kenya believe that to make it financially, they need to get a big break or ‘deal’. Many will keep hoping and trying to get a big contract, a big job opportunity, a lottery win or some windfall gain.

    However, success in investing has more to do with starting small and being consistent than getting a “breakthrough”. If you gain an understanding of the investment world and develop a habit of investing wisely, you will keep growing your wealth despite your income levels or opportunities available.

    1. The Higher the Risk, the Higher the Return

    Many people have lost a lot of their hard-earned money because of getting into get-rich-quick-schemes that promise much but turn out to be fraudulent or fall short of the promise. The lure of quick gains and exorbitant profiting has deceived many to lose their funds.

    However, to invest successfully, it is advisable to invest in time-tested products that have a sure return. Even when investing in more risky products, ensure that you have done a thorough check and only invest when you fully understand how the investment product works.

    1. To Succeed in Investing, You Must be a Miser

    Another common investment myth is that to be a successful investor, you must forego all the fun and live a poor boring life to save up to become rich. However, this is not true. A successful investment plan ensures that you enjoy your wealth both today and tomorrow. The investment plan must include short-term, mid-term and long-term investment goals that will ensure that you continually enjoy the fruits of your wealth.

    1. Investing is Complicated and is for Experts or Insiders

    Over the years, investment advisors and investment reports in the news have used hard language that has made investing look complicated and only for experts and insiders. But investing is easy to understand and information is easily available.

    Rubiani Wealth Management seeks to demystify investing and give investment knowledge to as many people as possible in an easy-to-understand way.

    1. Investing is Risky - My Money is Safer in the Bank

    Many people shy away from investing because they perceive that investing is risky and that they will lose their funds. However, this is not true. Many investment products ensure that you do not lose the funds that you have invested. Even for products that do not protect your invested funds, there are ways provided to reduce the risk while maximizing your returns.

    There you have it. We hope this will encourage you to get started and keep progressing in your investment journey.

    #nairobi investment consultant #wealth management nairobi #treasury bonds #treasury bills #2024 invest

    16Jan, 2024
    Forex Trading and the Risks Associated with the Trade
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    Ever heard of a millionaire Forex Trader? What about someone who lost so much of their wealth through Forex Trading? Forex trading is a popular high-risk investment opportunity. There are myths and a lot of misinformation about forex trading. This article seeks to demystify this.

    What is Forex Trading

    Forex trading is one of the highest-value trades in the world. Forex trading allows for international trade as it enables traders to access goods in a currency apart from their local currency. If you have ever travelled outside of your country or have imported an item, you must have been involved in some form of forex trading.

    CFD Forex Trading

    However, the common forex trading that is popularly traded as an investment opportunity is called CFD (Contract for Difference) Trading.

    CFD Forex trading is a type of investment that allows traders to speculate on the price movements of foreign currencies without dealing with the actual currencies. This trading is popular among high-risk investors as it offers high leverage, which means that traders can control large positions with a relatively small amount of capital. In other words, when you invest USD 1000, you can receive 100X leverage which enables you to trade as if you had USD 100,000.

    Risks Associated with CFD Forex Trading

    Leverage Risk - Leverage magnifies the small movements in prices so that you make or lose much more than you could have if you were not using leverage. This substantially increases the risk associated with this trade.

    Volatility - Another risk associated with CFD Forex trading is that the foreign exchange market is highly volatile and can be affected by a variety of political, economic, and social factors, making it difficult to predict price movements.

    Unregulated - CFD Forex trading is also not regulated in the same way as other financial instruments. This means that traders may not have the same level of protection against fraud or other illegal activities. Additionally, some CFD Forex brokers may not be trustworthy and may engage in unethical practices such as stop loss hunting, which can further increase the risk for traders. This has happened severally in the past and investors have lost quite a colossal amount of their money.

    Technical - Furthermore, CFD Forex trading requires a good understanding of the market and the ability to make quick decisions based on market conditions. For novice traders, this can be a difficult task and may lead to significant losses.

    CFD Forex trading is a high-risk, high-reward activity and may favour high-risk traders who are experienced and have a good understanding of the risks associated. However, for most investors, it can be a risky endeavour that has led to significant losses. Even for experienced traders, CFD trading still results in major losses. Therefore, whether you are trading personally or investing through a “guru”, only invest the money that you are willing to lose - in case the market goes against you.

    10Jan, 2024
    Valuable Tips for Fulfilling Your 2024 Financial Plans
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    Happy New Year from the Rubiani team.

    Many of us take these early days of the year to set goals for the year. Planning is important - if you are to ever accomplish anything meaningful in your life. There are overused sayings that go, “If you fail to plan, you plan to fail” and “If you aim at nothing, you shall surely hit it”.

    However, many of us know that planning is not enough. It is easy to make plans but following through is where the real challenge is. In this article, we look at various tips that can help you improve your score rate when it comes to your money plans;

    Plan Long Term

    Many of us fail to accomplish a lot financially because we plan short-term. We only think about our current financial situation. Unfortunately, financial issues and immediate financial needs will always be with us. We therefore advise that you make long-term plans for your finances irrespective of your current financial situation. You can then resolve these urgent financial needs from the perspective of your long-term goals. Financial urgencies and setbacks are temporal, but financial success is a lifelong journey.

    We are undisciplined. Change your strategy

    Many of us plan to save a certain amount of money every month but keep falling short and procrastinating. This is because urgent financial needs will come up and take up the money planned for investment. We, therefore, advise that you avoid the need to discipline yourself by setting up automated investing through a bank order or salary dedication. This way, you get to invest before meeting your other financial needs. This tip may just be a deal changer for you in 2024.

    Understand Yourself

    When it comes to investing and money goals, no single strategy works for everyone. We all have different financial situations, opportunities and personalities. Therefore, find out what works for you and stick with it. For some, setting ambitious goals works best as this pushes them to do more while for others, such ambitious goals will only frustrate you.  

    Get Accountability

    Ever thought about keeping your investment journey accountable? The thing with investing is that it is not urgent, but important. If you postpone starting your journey or skip 2, or 3 months of investing, there will be no immediate impact. However, sticking through with your investment plan has a lifelong impact on the quality of your life and that of your loved ones.

    At Rubiani, we have an accountability group - the “Rubiani Master Class”. These are people who have started the investment journey and are intentional and committed to getting to financial freedom. We keep each other accountable, informed and motivated towards this goal. Interested in joining? Email us at invest@rubianiwealth.com.

    Consider the Rubiani Investment Course

    Finally, we also advise that you take the Rubiani Investment Course. This is a 5 consecutive session course that you can take either on Thursday evenings or Saturday mornings. The course concludes with a one-on-one session. You will get to learn how to set SMART investment goals, understand how to overcome personal and societal money setbacks, understand how the investment world works and get to write your financial plan. The goal of this course is to get you on the right track when it comes to investing.