Money Management
June 5, 2026
Rent is one of the largest expenses for many working Kenyans. For some households, it consumes a significant portion of monthly income, leaving little room for savings and investments.
For this edition, Money254 spoke to Simon Mwangi, a marketing professional based in Nairobi who earns Ksh200,000 per month and has built an investment portfolio that now generates enough income to cover most, and sometimes all, of his Ksh25,000 monthly rent for his two-bedroom house in Kinoo along Waiyaki Way. Here is the story as told by Mwangi.
My journey with infrastructure bonds started in 2018. At the time, I was looking for an investment that would generate predictable income while also preserving my capital.
I had considered investing in land until I attended a conference where I was introduced to the concept of bond laddering. That is when I decided to invest in government bonds, specifically infrastructure bonds.
What attracted me to infrastructure bonds was that the interest earned is tax-free, allowing me to keep the full return.
From the beginning, I set myself a target of saving Ksh400,000 every year. Whenever the government announced a new infrastructure bond, I would invest the money I had accumulated. Since 2018, infrastructure bonds have been issued almost every year, with the exception of 2020.
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I did not build my portfolio overnight. Instead, I invested gradually over several years and across different bond issues. Today, I have approximately Ksh2.4 million invested in infrastructure bonds spread across six issues:
By 2025, after investing in six bonds, I was able to generate income every month of the year. Between 2018 and 2025, I still relied on my salary to cover the months that were not fully catered for by the bond income.
Currently, my Ksh400,000 investment in each bond generates the following monthly payments:
When I look at those interest payments, I know that in most months the bond income is enough to cover my rent or comes very close to doing so.
One strategy I have used is maintaining a Money Market Fund (MMF) account where any amount exceeding my Ksh25,000 rent is deposited. The surplus is then used to cover the months when the bond income falls short.
One of the biggest benefits of this strategy is that it has reduced my dependence on my salary. Knowing that a major expense like rent can be covered through investments gives me more flexibility when planning the rest of my finances.
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It also means that my salary can focus on other priorities such as savings, family expenses, and building additional investments.
From January 2025, I also made the decision to start saving towards buying land and building my own home. The Ksh25,000 of my salary that would have gone to rent now goes towards this dedicated savings goal.
By the end of May 2026, I had managed to save Ksh425,000. Once I hit Ksh1.5 million, I intend to look for land within the Nairobi metropolitan area and begin planning the construction of my own house.
Looking back, the most important lesson has been consistency. The Ksh2.4 million portfolio did not happen because I had a large amount of money at once. It happened because I committed to investing regularly whenever an opportunity arose.
For me, infrastructure bonds have become more than an investment. They have become a source of monthly financial relief because they help take care of one of my biggest recurring expenses.
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