29Mar, 2023
    Financial Literacy – A Need For Young People!
    Participants during Coffee Bar Session. Photo: Evans Jomo

    What are some of the financial/saving plans that are there? Do you think this information is accessible to young people out there? Do you think young people have information on where they can invest their money and gain returns? These questions created a baseline for our conversation and answered questions on how young people can tap into some of the plans and be able to have financial freedom and gains. If you take a walk around asking young people what kind of bank accounts they have or own, the majority of them have no idea on the type of account they have.

    We asked the same question to our participants during the coffee bar and to confirm this, 19 people do have bank accounts and only 4 have an idea of what type of account they have. The four have a salary account, fixed account credit account and savings account. For your information, the majority of banks have different accounts such as salary accounts, savings accounts, fixed accounts, recurring deposit accounts, money market accounts, and brokerage accounts among others. Keep in mind these types of accounts vary from one bank to another.

    There are several reasons why most young people do not invest their money with lack of jobs and lack of information on financial literacy being among the top reasons. Many young people don’t have any money left over to invest because of their lifestyle. However, even the employed don’t have or understand how and where to invest their small money thus why this financial literacy was the topic of the day.

    Here are some of the financial and savings plans where young people can tap in to.

    Savings Account

    A savings account is an account where your money earns you interest. The safety and reliability of these accounts make them great options for parking cash you wish to keep available for short-term needs. You can make your hard-earned money work for you with a savings account with one of the best bank interest rates in Kenya. Interest is based on the day-end balances in the savings account and interest rate varies from 1% to 7%. The interest rate will be determined by your bank, money saved and period.

    Fixed Deposit Account

    A fixed deposit account is an investment account where a customer deposits a specified amount of money for a certain/fixed period of time. Through this, the fixed amount accumulates interests for the period the money is held in the account. Fixed deposits are almost the same as savings accounts. The only difference is you cannot access your money for an agreed fixed period like one, three, six months or a year. Different banks allow KShs 20,000 as a minimum fixing amount. Your savings can earn you between 4% – 7% for the period locked. The interest rate will be determined by your savings, your bank and period fixed.

    Money Market Funding

    A money market fund is a type of interest-earning savings account. Before investing elsewhere or making an anticipated investment, money market funds are a good place to park money. They are not suitable as long-term investments. Among investment options, money market funds are considered to be extremely low-risk. They also offer relatively high returns to investors compared t traditional savings accounts. Most Money Market Fundings offer returns on investments ranging from 7.0% to 10.6% annually. The interests also vary from one financial institution to another.

    Treasury Bills

    Treasury bills are short-term investment or units; in simple words these are debts also known as government debt, meaning that you are investing in the Kenyan Government. They offer you returns after a relatively short commitment of funds. This means that investors choose the amount that they will receive when the bill matures, or the face value of the bill, and pay less than that amount when purchasing it. Treasury bills mature in 91, 182 or 364 days, so you will receive your returns within three, six or 12 months. The first step to investing in Treasury bills is to open a CDS account with the Central Bank. To open a CDS account, you need to hold a bank account with a Kenyan commercial bank. Read more Here 

    Treasury Bonds

    Treasury bonds are a secure, medium- to long-term investment and are units of government debt, meaning that you are investing in the Kenyan Government. They offer you interest payments every six months throughout the bond’s maturity. The Central Bank auctions Treasury bonds on a monthly basis, but offers a variety of bonds throughout the year, so prospective investors should regularly check for upcoming auctions. Treasury bonds are auctioned every month, providing ample investment opportunities for diverse financial needs. Treasury bonds are offered for a set amount of years, ranging, to date, from one to 30 years. The difference between bills and bonds and timeframe. Read more here

    Sacco

    A Sacco is usually a group of similar minded people, registered by the Ministry of Cooperatives, and authorized to receive deposits and provide loans to members. This is also a savings plan that is more conducive to young people since it doesn’t require much money as savings. Members are required to save consistently and this, in turn cultivates the discipline of saving frequently. Some Saccos also have a minimum monthly savings amount that is aimed at helping members keep up with their savings goals. The beauty of sacco is you are able to get dividends at the end of the sacco’s financial year. Some saccos offer dividends of between 6% – 18% per share; keeping in mind this varies from one sacco to another. The other benefit is you are able to access a loan 3 times your savings, meaning if you have saved Kshs 30,000, you are able to access 90,000. However, the saccos also have their other bad side such that you need a guarantor for you to get a loan. 

    Shares

    Owning a share is the same as owning a piece of the company. When you buy a share in a company, you’re effectively becoming a part owner of that company. Its true that young people are not investing because they do not understand the process involved with buying/selling shares and how the market works. The Nairobi Securities Exchange is the official stock exchange in Kenya. It is the central marketplace where buyers and sellers of Kenyan shares meet to trade. Ndindi Nyoro started buying Kenya Power and Lighting Company shares in his first year at Kenyatta University. Currently, he is the top individual shareholder meaning it’s possible for young people to join this investment venture. People buy shares to make a profit from buying and selling securities and to earn dividends and capital gains from being a shareholder. You must also know that when buying a share of a company, you must be ready to share both losses and profits together.

    MShwari

    This is a savings account but being hosted by Safaricom. It allows M-Shwari customers to save for a defined purpose and for a period of time. There’s a difference between Mshwari and Mshwari Lock Savings and in this case our focus is on the lock savings. The funds saved on the M-Shwari Lock Savings will be kept in the account until the maturity date. The M-Shwari Lock Savings Account is ideal for customers looking for higher interest rates and those wishing to keep money away safely for a short period. Majority of us do save money on the normal Mshwari where it doesn’t give you any interest. The Mshwari Lock savings account earns an interest between 5%  – 7% per annum. The interest rate is constant during the investment period and is calculated daily and paid out at maturity. Read More Here

     

    Disclaimer: This is not from a financial expert but from research and reference from people already doing it.

    As a young person, you need to learn how to make money while you are sleeping and make your money work for you. The sooner you start investing, the better for you. It’s also good to note that some of these financial plans need more advice and due diligence before investing in them. Keeping in mind there is no guarantee that you’ll make money from investments you make.  

    It is better to start early, even if it is a small amount to start with. But getting the facts on saving and investing and following through with a well outlined plan, as a young person you should be able to gain financial security over the years and enjoy the benefits of managing your money. We also challenge financial institutions to work with young people in disseminating such information. See you on Tuesday! 

    22Mar, 2023
    Childhood Trauma – Do you Remember it?
    Participants during coffee bar. Photo: Julius Rasat

    What you went through as a child could play a huge role in what you do, how you react, how you behave or even how you talk as a person. This week’s #CoffeeBarTuesday, our discussion changed to group therapy where we shared some of the traumatic events that went through or witnessed while we were young. At one point or another, we all have been through a traumatic event that we have never shared or it still bothers and hurts us. Some of these traumatic events have made society normalize, passing them to generations.

    A traumatic event is a frightening, dangerous, or violent event that poses a threat to a child’s life or bodily integrity. Witnessing a traumatic event that threatens the life or physical security of a loved one can also be traumatic. This is particularly important for young children as their sense of safety depends on the perceived safety of their attachment figures. Source NCTSN 

    According to the World Health Organization (WHO), it is estimated that 40 million children aged below 15 years fall victim to violence each year. Save the Children, a non governmental organization did publish a document having 700 cases of sexual abuse of children in a single country. These are just not numbers but children who have gone through traumatic events.

    Another example given was, if you grew up with a single parent because one left or died, this will affect your decision making when it comes to marriage. You will get someone going through much hurt because they don’t want their children to experience what they went through. This has affected so many people to a point they would rather experience any form of sexual and gender based violence than leave the toxic relationship.

    Some of the traumatic events known to many include physical, sexual, or psychological abuse, neglect, loss of a loved one, family or relationship violence, accidents, sickeness, undergone FGM, and family breakups. The traumas vary according to the severity of the violence and the child’s personal experience which in the long run can have medical and psychosocial consequences.

    During the discussion, we were able to note that some of the traumatic events such as family violence/gender based violence contributes to our way of life. I.e one participant pointed out that if they witness any form of gender based violence they always intervene with violence. This has affected their lives to a point they can’t control themselves. Research indicates that children who grow or witness violence are more likely to beat up their partners when they become adults compared to those who grew up in non-violent homes.

    We all have been through so much that we have normalized it and adapted it as our way of life. During the discussion, everyone had their own different story to a point some became emotional while sharing. This clearly shows we are not okay and there’s a need to seek help. Imagine passing what you went through to your children because you never seek help. In case you would like to share or talk to a counselor, kindly reach out through our social media platforms or visit offices in Mukuru Kwa Reuben. It’s okay not to be okay.  See you on Tuesday!

    16Mar, 2023
    How Are Young People Surviving? High Cost Of Living!
    Partcipants during Coffee Bar Tuesday. Photo: Evans Jomo

    With the current high cost of living, how are people surviving? How are young people surviving? How are they coping  and do they have coping mechanisms? What opportunities are there for young people? Our #CoffeeBarDiscussion focused on how young people are surviving during these hard times. Young people lead with the high rate of unemployment, crime rate, drug and substance abuse, early pregnancies among other social vices.

    Business Daily indicates that of the 10.1 million Kenyans out of jobs, 2.5 million are actively looking for work while 7.6 million are inactive, either because they don’t need jobs or have given up looking for them. With sluggish corporate earnings leading to job cuts and hiring freezes, young people are the hardest hit by joblessness compared to their older counterparts.

    Out of the 26 participants during the discussion, 3 are fully employed, 4 are self-employed, 2 are doing casual jobs while the rest don’t have anywhere specific to get their daily bread. As one participant shared, they survive by the Grace of God. This translates to the state of young people not being able to access opportunities which are there and also the government not being able to create more job opportunities.

    We asked the 15 how they are surviving and here are some of the response they gave :- 1 survives by making sure they cut their expenditures remaining with only basic needs, 9 survive by looking for manual jobs, 2 a survive through their parents support since they are students, 2 survive through support from friends and 1 survives by making sure that he’s single. One of the participants believes that being single is one way of cutting costs and avoiding unnecessary spending.

    “Being single means I don’t have someone expecting me to take them out on dates, means no one is expecting me to buy them gifts or pay anything for them. I only cater for my needs and wants only”

    After understanding how young people are surviving, the conversation continued through participants sharing opportunities where others can apply or engage with. This was through platforms, job opportunities, vacancies and openings at different companies and organizations. We also shared how to protect our mental health especially for those who don’t have a way of making a living, it’s very easy to find a coping mechanism and that is how you get yourself indulging and engaging in social vices and becoming an addict or losing yourself in the process.

    We have seen young people losing their lives because of how they are making their living. Young people are at a very high risk of engaging in crime activities in order to make a living. Some have lost lives through crime, where they steal and get mob justice or being shot, others have engaged in reckless drug and substance abuse as a coping mechanism and through that they are not able to get back on track.

    We are happy that through the Coffee bar Tuesday space, participants were able to understand some platforms where they can earn some cash such as social media platforms and apps like Wowzi for those in the social media space. We also shared other job opportunities and vacancies in different companies and organizations where participants were encouraged to apply.

    Through the discussion, it’s clear that young people don’t have information on some of the opportunities surrounding them. It’s also clear that we all look for opportunities from high end people and companies without utilizing the people close to us. It’s also evident that opportunities are there but the spaces to share those opportunities are scarce and are not accessible to and by everyone.

    We also urged participants to engage in learning or perfecting a skill that would employ them. As an organization, we believe in creating space where young people can share opportunities and connect them with the opportunities. We also believe that through employment, young people will not engage themselves in social vices and it aligns with our organization’s vision – to have a community that is free from social vices and youths who are focused on seeing the community develop both socially and economically. See you on Tuesday!

    9Mar, 2023
    What’s The Difference Between PEP and PrEP?
    Participants during Coffee Bar Tuesday. Photo Courtesy: Julius Rasat

    Do you think you are at risk of contracting HIV? This question was the topic of the discussion with the majority of the participants stating that they are not at risk of being infected. The #CoffeeBarSession hosted young people from Mukuru with PEP and PrEP being at the center of the discussion.  

    How many times have you heard of a condom bursting? How many times have you had sexual intercourse with multiple partners? How many times have you heard of rape cases? Does that put you at risk? 

    PEP and PrEP discussion came at a better time when young people are not aware of how they work and the difference. Out of 27 participants, 25 have never heard of these types of medicines. This is a clear indication that there’s less information and this is also a contributing factor on the rise of HIV infections among young people. 

    We dwelled in understanding the difference between the two drugs and also who is at risk of getting HIV with a lot of people getting confused and shocked that there are actually medicines that can prevent HIV. 7 people have heard of PEP since its usually given after someone has been exposed through sexual assault such as rape. The difference between Pre-exposure prophylaxis (PrEP) and Post exposure prophylaxis (PrEP) is one is taken before exposure while the other is taken after you have been exposed.

    How is it possible that we have a drug that protect us and the drug is not known to many, do they want us to get infected or what is their own motive.

    Pre-exposure prophylaxis (PrEP) is antiretroviral medicine taken by HIV negative individuals to prevent getting HIV. If you don’t have HIV but have a high risk of contracting the virus, pre-exposure prophylaxis (PrEP) may be an option for you. Taking this medication once a day can greatly reduce your chances of developing HIV.

    PrEP is for you if have had anal or vaginal sex in the past 6 months, you have a sexual partner who is HIV positive, you have not consistently used a condom or have been diagnosed with an STD in the past 6 months. This type of medicine is meant for people who don’t live with HIV but have higher chances of developing the condition.

    PEP better known as post-exposure prophylaxis, is a short course of HIV medicines taken very soon after a possible exposure to HIV to prevent the virus from taking hold in your bodyThe medicine must be taken within 72 hours (3 days) after a possible exposure to HIV, or it won’t work. The drug is usually taken on emergency cases and is not meant for regular use by people who may be exposed to HIV frequently.

    A lady participant pointed out that with the help of organization within Mukuru and beyond have in the frontline of sensitizing women and girls on PrEP and PEP leaving men and boys out the conversation. It was also noted that condom is the most used way of protecting yourself from being infected. However, majority were not aware that as soon as the condom bursts, you are also at risk of being infected.

    Different reports indicate that people below 29 years are at higher risk of contracting the virus. Kenya may not achieve its quest to combat HIV/Aids if the current wave of new infections among adolescents and the youth is not contained and addressed. The first step is making sure that New HIV infections are contained by is by making sure information such as PrEP and PEP is not known out there. There’s need to have a vigorous campaign on PEP and PrEP. Young girls are being sexually violated and are not aware of any medication that would protect them from HIV.

    We are all at risk of getting HIV, especially young people. Looking at the rate of teenage pregnancies and infections, we all need to take PrEP. Remember prevention is better than cure. In case you hear someone has been raped or a condom bursts, visit the office immediately.

    As an organization, we continue to create safe spaces where young people can unlearn and learn. We believe in community that is well empowered and understands how the world its changing. Kindly note that the information shared here is not from a doctor. You need to visit the hospital for information and guidance. See you on Tuesday!

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