How to spend and save sh 20,000 salary in Nairobi, Kenya


Saving habit is a very complex thing especially when an individual is not earning enough to sustain him throughout the month. Saving is not something to learn in class but a habit you should develop right from the time you earn your first coin. There is no money which is too little to save; it’s you poor spending habit that makes you believe yours is little.

Nairobi is one of the most expensive cities in Africa but still there are estates where you could live and save larger portion of your salary. This article is aimed at shading some light on where you should live, how you should spend and what you should save when your salary is just Ksh20, 000 per month.

Estates you should live in Nairobi when earning Sh20, 000

With 20,000 you cannot afford to live in estates like Lovington, Muthaiga.Kileleshwa and Karen. Your salary dictates where to live. Below are estates you should look for a cheap house.

  1. Pipeline Embakasi
  2. Kibera
  3. Kayole
  4. Ruiru
  5. Mathare
  6. Kawangware
  7. Umoja
  8. Kariobangi
  9. Kangemi
  10. Satellite
  11. Korogocho
  12. Dandora
  13. Ruai
  14. Rongai

In these estate you should look for houses whose rent range from Sh2, 500-5,000.If you pay more than Sh5, 000 chances of saving a coin are limited.

How you should send your salary

When you earn Sh 20,000 per month, you pay Sh2, 000 as tax, meaning that you remain with Sh 18,000 to spend.

With Sh 18,000 on your hand, make sure the rent you pay is Sh 4, 000, shopping should take Sh 4, 000, food should take Sh 3,000 and miscellaneous expenses should take Sh 3,000.

In total you should spend Sh15, 000.So, what you should save is Ksh3, 000 if your salary is Ksh 20,000

How to increase your income

Clearly, saving Sh 3,000 per month will not do anything constructive in the short term. I could advice you to start a small business to supplement your income.






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