6 Things You Need To Know

Starting your own business, making a quick shilling, covering daily expenses, purchasing that house or apartment, paying that fee...if any such related thought has ever crossed your mind, then the thought of borrowing money has not lingered too far from that. Most of us hate the idea of borrowing funds due to pride or whatever it is we stroke our egos with. Using your own money in pursuit of anything is as lamentable as it is commendable. What we’ve been excessively exposed to is “normal” bank loans and the occasional family fund raising. There’s more to borrowing money than meets the eye. Here are a few pointers I thought I’d share with you.

1.      Read the fine print – Everything comes with terms and conditions of use. YOU are the borrower. Take your time to read the fine print until you’ve understood the policies. Be sure to ask about penalties charged for late and early repayments. Most institutions will charge you extra for not meeting the repayment deadline by midnight of the contracted day(s) of repayment. An even higher rate will be charged if you pay back the whole debt at once. This is because they have to forfeit the interest they’d be earning had you chosen to pay them back over the planned time period. Both of these are negotiable, so please take your time coming to affordable terms. Most importantly, check on the policies regarding defaulting. This occurs when you show inability to repay the money you borrowed. It typically ranges between lenders from 30 – 90 days, or more depending on how sweet your tongue is.

2.      Avoid unsecured loans – The interest charged on these loans is enough to postpone the apocalypse. Would you lend money to someone else without some sort of guarantee of payment? These loans bear amongst the greatest risks for a lender and inevitable duress on the borrower to repay.

3.   Marginal loans –This refers to borrowing from an investment or investor firm for the purpose of investing, amongst other personal uses. It is common practice to provide collateral for the loan in the form of own shares or assets. The rate at which this type of loan has shot up in Kenya is outlandish. Looking back at the IPOs in Kenya since 2005, lots of people have been borrowing under a ruse that they’ll make a profit from trading within the 1^st week…..and people never learn from their mistakes. This type of loan is a pure gamble.

4.     Search for the best rates – From borrowing from your roommate at an interest of 10% to that of the bank at 25%, there’s a tariff that will suit your specific needs. Rates are not confined to monetary compensation. Some charge you a percentage of your products or time. You might find it better setting aside a crate or two of beer every month from your brewery than repaying money that would have otherwise been plowed back in to your venture.

5.    Borrow money - DO NOT put all your eggs in one basket. Borrowing money lessens the risk you expose your personal finances to. It spreads the risk of loss. Example; You use your personal savings of Kshs.10,000 to start a small bakery that incurs losses amounting to Kshs.3000 every month. I borrow Kshs 5000 to start a similar bakery and incur the same losses. Who would be in a better position? You, who's survival hinges on every cent as you try recover your money, or me who has an extra Kshs.5000 to invest, improve returns and repay loan?

6.  DON'T borrow in a foreign currency - Lots of manufacturers and banks do this. They say that the foreign currency is more stable thus creating some sort of certainty in reimbursement amounts. This to me, is male-cow-manure!! How exactly is it sensible to peg your loan to a foreign currency amidst a depreciating currency with which you make your income? Whoever borrowed $ 1M last year is automatically facing higher settlement amounts, excluding increased interest rates. Did I mention how the effects of the recession are still being felt in Africa? Of all the continents, we usually feel the effects last be it technological advancement (save a limited no. of innovations), climate change or any other thing. Same applies to the recovery from the recession. We're not yet able to let go of the money in our pockets, even when purchasing staple foods.

There's lots to look out for, but that shall be covered at another date. Borrowing money is something all of us have done and as much as we hate it, is a viable source of funding. Conduct deeper research before you do. Borrow this information and advance on it if you will.

Common cents

A few posts back I talked about the sweet high that was -and still is- sugar in Kenya. I compared it's retail price to that of South Sudan and informed you on how the sugar industry was running out of time to meet COMESA's conditions that will enable cheaper sugar.

Update: An application was made to extend COMESA protection. From what I've heard, they've been granted that extension til 2014. Quite unfortunate for us as we've been left at the mercy of the sugar millers.

Just when we speculated that life would somehow get better, the banks raised their rate yet again. Lending rates are now averaging 22% i.e. for every Kshs. 10,000 you borrow, you're paying back a total in excess of Kshs. 12,200. Those who had an ongoing debt payment plan are facing yet another increase in interest rates. According to the BusinessDailyAfrica, the Monetary Policy Committee's decisions were a carbon copy of the IMF’s recommendations made public a day earlier and which rooted for a tightening of monetary policy to limit credit to the private sector and to stop further slide of the shilling. This conclusion was made this past Monday (October 31, 2011). I find it sad that a whole country's money supply policy will revolve around recommendations that are not of our own making. We obviously need to reduce the circulation of our local currency, but to peg it to interest rates and Reserve Ratios is sappy. There has been little use of Open Market Operations.....specifically, government selling securities so that they reduce money flow.

A recently created tool is the Term Auction Facility, TAF in short. This basically allows banks to bid for a fixed reserve from the Central Bank. Instead of loosely dishing money to them in hopes that demand of foreign exchange decreases, CBK can have them bid against each other to see how much they're willing to pay to have those dollars with them. It can also be in the form of assets.Wouldn't they rather have a commercial bank hand in a chunk of the local currency in circulation than have them hoard it? Wouldn't this reduce money supply without stressing citizens and every other Kenyan student as much?? Or is the idolizing of profits that important that they forgot the poor citizens whose Kshs. 30 contributes more to the economy than the rich man's Kshs. 2.5M?

NB: Open Market Operations refers to the purchase and sale of government securities such as bonds, etc. Buying them off the government means you've given them your money in exchange for a given annual interest and repayment to you of principal amount on the final year. In short, you help decrease money currently circulating.

        Monetary Policy is a means via which the Central Bank of any country controls the supply and circulation of money in an economy. It's their mandate as allocated by their respective central governing body.

Mboco For Christmas

The short rains have been punctual this time round. They're finally here and from the looks of it, mostly fall during the night. I've heard a few theories like "Wangari Maathai's spirit is watching over us" and "The universe is weeping over Maathai's death". I don't take kindly to superstitious beliefs and it's sad that people found time to make jokes about one of Kenya's late heroines.

There's been a lot of speculation of how food prices and costs of electricity will now fall coz it's raining....pffft! Short rains definitely increase water supply to the relevant production factors, but that doesn't means that it will have an immediate effect. Beans for example, can take 85 - 90 days before harvest. That's essentially from now until Christmas week. Mboco for Christmas anyone?? If rain be the sole influence on food prices, then earliest price decrease should be expected in Mid Jan through Feb. This isn't to say farmers out there shouldn't plant like crazy. Planting maize now, for example, will increase its supply by Feb thereby decreasing one of the input costs for millers. That means Ugali will be more affordable then...if the millers behave themselves.

 Ugali avec kachumbari et fried goat

(Sourced from Google)

DO NOT, if anything, rely solely on weather forecasts. Our meteorologists have a tendency of making vital information available a tad bit late. I'm yet to confirm whether our National Disaster Operations Centre still exists as they've been a bit silent....a bit! October 2011 saw Turkana face floods and immediate reactions by various ministries to "save" them - a task that cost millions. The same happened last month in Western Kenya and parts of Nakuru. Had measures been taken during these periods to use the flood to our advantage by creating a dam to store the water and irrigate land, we'd be facing lower food prices by Dec....thus amplifying our holiday experience.

As for electricity, whatever increase there is in water supply is probably being channeled to areas with shortage and other areas of expansion. Unfortunately, what they said about electricity being cheaper next year June seems more of a reality right now....if this be the only contributor you're considering. It's an unfortunate cycle we've been following for years. Food prices increase during non-rain seasons then decrease around Jan, but never returning to the original  price. Making demands for immediate reduction of costs solely based on these short rains will be unfruitful. You'll end up eating Mboco for Christmas.

NB: Mboco is pronounced Mbo-sho. English name is runner beans

Cheating On Kenya

The most basic of human needs are food and shelter (clothes are debatable). From the time we were born, food became crucial for our survival and it shall remain so until our last breath. On average, a venture into food production or supply will gain one an income able to support their lifestyle. Shelter is a whole other story. Some of us are IDPs in our own homes and yearn the freedom associated with owning a house or a piece of land.
Sad to say, setting aside part of your salary to purchase land in Kenya might be in vain. A quick look at the current market value of land in, lets say, Kiambu reveals that land value has shot up four-fold in the last 3 years....and is still rising. In 2008, a sum of Kshs.5M would have acquired you 1 acre NEXT TO THE ROAD!! Right now, a minimum of Kshs.21M is required just to get the seller interested. As we move closer to CBD, the land prices get exponentially higher (translated: really f***ed up). But who says we should limit ourselves to Kenya??


SOUTH AMERICA:

I'm talking about Brazil, Uruguay, Paraguay, Argentina, Chile, Ecuador, Peru, etc. Land here is quite cheap compared to Kenya, and ranges from $4000 to $54000, the former being for 2+ acres of farmland in Argentina and the latter for a beach front in Ecuador. That's Kshs.400,000 for 2 acres of arable land on which you can grow sugarcane, soya, sorghum or whatever the climate sees fit...mostly grapes in Argentina. On top of earning foreign currency as a side job, you can build a house for vacation purposes. A few things are as relieving as going on holiday, say beach front house in Ecuador or vineyard in Argentina, with accommodation expenses fully covered. Many a country in South America has been hit by over 500% inflation and the currency value fluctuation might raise a few eyebrows. Couple that with trust issues people have, and you have yourself every reason not to go there. Like every other exchange, know the right people and you'd be surprised the size of land you can get.

OCEANIA:
New Zealand, Philippines, Fiji. Hawaii, Singapore, Papua New Guinea, etc. Oceania has some of the most beautiful islands on planet earth. In Makati City, Philippines, there's an ongoing construction that could see you own a condo for $60000 i.e. Kshs.6M. The best part: 0% down payment. You pay 40% during the construction and the remainder 60% upon delivery of the condo.....NOWHERE in Kenya can you find such an offer. And if you do find one, it's more and more of a suspicious transaction.And why should you trust this construction in Philippines?? Coz they're the ones who built the Niagara Tower and Sutherland Tower...to name a few.

Niagara Tower

 Sutherland Tower (New Zealand)

 Land ownership is in most instances much cheaper outside Kenya. Google a few places and place that call. You'd be surprised at how relatively easier it is to own one.

All that power

"No one man should have all that power" - Kanye West

I was reminded of this song earlier today when I woke up to the news of yet another increase in the cost of electricity in Kenya. It has gone up to Kshs 8 per unit and reasons given are basically the weakening of the shilling which has driven petroleum costs up and the drought that saw shortage in electricity supply. I've b****ed about a lot of stuff, but this move by the power regulators will certainly take the cake. Why?

Electricity forms part of the basic basket for not only households but manufacturers. Unlike sugar and flour, this kind of increase affects ALL commodities. A rise in input costs certainly translates to an equal if not higher increase in that of the output...in Kenya anyway. All costs will be passed onto the consumers, as explicitly announced by the Kenya Association of Manufacturers last week. Which means that your current household budget -after weeks of adjusting- is STILL inadequate.

Due to over-reliance on hydroelectricity and diesel run generators, the energy sector is now looking into investing in wind, thermal and nuclear energy to meet consumer demand. What I don't understand is why they're not considering solar power...and why the hell nuclear energy is even on the list. Kenya lies along the equator hence receives sunlight for the most of the year. Solar panels are therefore our best fit. Greece manufactures them in the thousands of products. Given their current crisis, I'd say we have more bargaining power and could buy from them at a cheaper price. The EU is currently being wooed into investing in Greece's energy sector since it faces over 300 days of sunlight in a year...yet they ain't even along the equator like us!!

Fellow Kenyans, let us invest in solar panels now and take some weight off Kenya Power's shoulder.God knows we can't stand inefficiency coupled with increased charges.

Patriotism I

I love my country, love iiiit, love iiiiiiiiiit! There's many things I believe can be done better to improve our status and decrease our annual losses. I'd do anything to save my country provided it's within reason.
Sugar has been the cream of most conversations in Kenya for the past month, and for good reason. 1kg of sugar goes for between Kshs. 200 - 220 ($2.00 - $2.40) up from Kshs.75 in January. Reasons given by millers range from shortage in sugar cane supply to increased pay to farmers. As part of the consumer basket, it has obviously decreased disposable income for most households. Whereas a 2kg pack had a budget of Kshs. 150, we now have to spend between Kshs. 400 - 450 (roughly a 3-fold increase). All this I attribute to lack of accountability. Lemmi explain;
The Kenyan government owns 5 sugar mills of which 4 are producing below half their capacity. These very mills have a debt of Kshs. 50 billion which is yet to be cleared since 2007 when protection for the local industry was given via a COMESA agreement. Of all the mills in Kenya -8 in total if I'm not mistaken- Mumias Sugar Company is the most efficient but still produces way below its capacity. Kenya in total requires about 12 factories with a total labor force of about 40000+ to meet its current sugar demand. We've had close to 5 years to improve our milling technology such that more sugar can be produced from one tonne of sugar cane. This change is yet to be seen, and I'm surprised there's been no media coverage or follow-up on whether the millers have been keeping to the COMESA agreement. 5 years down the line and little to no change has occurred. Our sugar millers also rely heavily on farmers to supply their raw materials. I really don't understand why they can't PRODUCE THEIR OWN sugar cane. It's like how parents will call for you when you're busy just to change the channel or give them the remote...fcuking ridiculous!!!
I won't delve into suitable technologies coz that's just another headache. I'm glad the protection COMESA offered to the sugar industry is coming to an end in March 2012. Our new neighbors, South Sudan, produce sugar in excess and I'm told can currently retail it in Kenya at Kshs.40 - 50 ($0.50 - $0.60) per kg. As usual, a few politicians are already looking to extend the protection offered to Kenya in order to protect the sugar milling industries. Wouldn't it be better though, to import and retail sugar at Kshs. 50/kg and increase our disposable income? God knows I can use that extra Kshs. 300 to improve my lifestyle. South Sudan is also not proficient in milk production. I've seen a couple of STUPID FARMERS pour their milk in protest of purchase prices. Hows about we export milk to South Sudan in exchange for sugar?? I am a Kenyan student and damn patriotic to my country. I WILL to stab the sugar industry if it means the potential for growing my country is higher.

A sweet high

In the morning prior to my last post, I had a cup of tea accompanied by a full-fledged teaspoon of sugar. Today morning, my cup was accompanied by a teaspoon of hope...and a chapati. Such is the situation in most Kenyan households. The price of sugar escalated to historical values overnight. I passed by a supermarket yesterday to buy some and was shocked to hear them say that they didn't have any (obviously holding stock). Some places are selling it for Kshs 235!! At such a price, you're better off having plain bread -with salt from our tears- for breakfast. As if that were not bad enough, food prices are shooting up like its a race. Flour, butter and rice are but a few examples.
Speaking of inflation, Kenya's moved up to 16.7% this month, up from 15.5% in July. ANOTHER historical high for my beloved country. Here's what it means: High rates of inflation lead to inefficiency in a market economy and, in the medium to longer term, to a lower rate of economic growth. Movements in the general price level are influenced by the amount of money in circulation, and productivity of the various economic sectors. If I'm not mistaken, the Central bank called back some money a few months back....or was it a plea to citizens to let go of the coins they were holding?? Basically, the money in circulation had/has gone down. Couple this with a depreciating currency and you have a nation of desperation. What one could buy with a money 'X' is much less. That $1000 note book that used to cost Kshs. 80000 now costs Kshs.94000. That's what inflation means.
There's other ways to survive though. As of tomorrow I'm replacing sugar with honey, butter with jam and faith with dreams (they can still come true). Some alternatives are much cheaper and even healthier. After-all, I'm still investing in my physical health and financial future.

Accomplished one of my 2011 goals :)

Straight to the point....I finally opened a bank account. One that I'll actually use. I had one before but I figure it's been closed due to inactivity (2 years of no transactions). If any of you jacked me within that period, you would have found a few notes in my socks and other areas. Lakini sasa....tough luck!

"He's only opening a bank account now?" Yes, yes I am. I've always been against the notion of keeping my money in another institution's hands only to be charged for either withdrawing my own money or simply keeping it there. Alas, it's necessary. As much as there are 5 layers of security to get through before you reach the 600 bob under my pillow, a bank somehow feels safer.

Bank accounts differ from bank to bank. Here are some common types:

1. Checking account: Commonly known as current account and used for daily transactions at a fee. Withdrawal can be done at any time and there's no limit (unless you intentionally put one or are withdrawing more than what you have). No interest on deposits. Use it preferably if you're in business.
2. Certificate of deposit account: Commonly known as fixed account. Earns a relatively high interest on deposit (which is made once and for a fixed period of time). You cannot withdraw until its maturity. In Kenya, most banks require a minimum deposit of Kshs 500,000. The longer the period, the higher the interest earned.
3. Savings account: These are meant to encourage a saving culture. Fair interest is earned on deposits and one can only withdraw a given maximum and a given number of times in a month. The trick is to find a bank that offers a rate that will help you beat our 16+ % inflation.

With the introduction of M-banking (transactions via one's mobile phone...at a fee) and E-banking (Remote banking transactions via internet...at a fee), banking has become more efficient if not quite enjoyable. Having an ZAP, YUcash, Orange, MobiKash or M-PESA account really helps with this. Research on the various student accounts available in your area. Sit through those tasteless bank account advertisements. God knows some are better than their actual service. Till next time...

Armed for the future

There's many ways to arm your future. One can literally make a futures contract to have ammunition delivered at a future date a a given current price (the beauty of futures market). This isn't the kind of arming I'm talking about though. I'm referring to increasing the probability of a secure and more stable future. Investing to be more specific. Many of us are investing subconsciously e.g. eating right, networking, purchasing shares,etcetera. I'll briefly focus on the financial investment bit in hopes of alerting or reminding you how important it is to think in the long-term.

 

I've been setting aside Kshs. 600 every week for the past month. It sounds petty right about now, but I'm sure this "petty" stamp will decrease exponentially to the function of time. I plan on owning/acquiring at least 1000 shares in a number of companies listed in the NSE by the time I graduate next year. Economics101 teaches us that the opportunity cost of having money set aside is the interest one would have alternatively earned. Last i checked, the interest rate offered by most banks floats around the 4% mark while that of inflation around the 20% zone. Without getting too statistical about the figures, one can safely say that my recent more sounds good. As an OPM member, I need to grow my income...somehow! So i picked one of the safer ways of doing it, buying shares. Anyone who kept their eyes on BAT around 7-10 years ago would have noticed their Kshs. 139 stock price. As with most, people kept away from it claiming it was too expensive a share. As far as I recall, the company has been paying dividends in the range of Kshs.14 - Kshs. 17.50 @ share....among the highest paid in this country. The stock is currently listed at Kshs. 255 per share, a decrease from the Kshs. 300 it hit some time last year. There are other examples in the opposite end of this spectrum. I'm certainly not advising you on what to do with your money. My plan is to keep setting aside this "extra"amount every week. What I'm asking you to do is to consider saving Kshs. 601, and pray I don't catch up to your wealth.

BACK FROM HIATUS

I’d like to first apologize for taking my hiatus for too long a period. Too long has it been since I indulged you into some of the typical student experiences I’ve had. Amongst these are the royal wedding (which I attended courtesy of Dstv), a divisive national budget and a Kshs. 1,200,000 dowry fairy tale. The royal wedding was a wave of change and a much needed breath of fresh air for the world’s youth populace. Youth representation always makes me feel like my opinions have been heard no matter how far away I am. As for our national budget, I only refer to it as divisive because of the pre and post conflicts that it came with; ranging from date of reading to claimed miscalculations. The Kshs. 1.2 million dowry statement made a few weeks back has been (and still is) a topic worth having a heated debate. I found myself in one last week…and I loved it J Truth is, arguments bring out an individual’s real traits and values.

Most shocking of all is the ongoing tax mess. The suggestion to have employers file tax returns for their employees is quite noble. Its implementation within a fortnight however, is where the complications lie. The KRA (Kenya Revenue Authority) and Treasury differ in their opinions as to when employees will stop individually filing their tax returns. Even more shocking is the debate as to whether Members of Parliament should pay taxes. It’s been going on for almost a week now. The underlying issues regard an allowance by the old constitution to exempt them from tax and the new constitution which does not exempt them from it. Attempts to refer the matter to the newly appointed Chief Justice Dr. Mutunga W. have hit what I’d call a titanic iceberg. Our Lord met with senior officials of KRA as he sought to put in force an order in which Judiciary staff conform to the new constitution by paying their dues. A sneak peek into yesterday’s prime time news showed some MPs making their way to the tax collection arm of government to pay their dues. Some are calling it a PR tactic, a campaign measure…etc. All I know is that they’re starting to pay their levies, and I appreciate it. 
For a copy of the budget speech and related documents, download a copy from the link below
www.finance.go.ke
 

……VIVA LA CONSTITUTION…...

Party Etiquette

Last week saw the end of the first 2011 semester. This final week means a lot to students, with these meanings ranging from “finally done with this course” to “I ain’t taking that lecturer again”. It’s also the time when the most memorable of parties are held. The feeling of not working the next day is euphoric and everyone loves it. I wouldn’t go as far as saying that it’s irreplaceable though. So a couple of my friends and I got together to hold a party. I'm not rich...yet. The best way for me to do this was to pool resources, so we did. Invites were dished out and the venue was set for the raiding. It was the second time we held that party so we knew what to expect…..or did we? I’ve been to a number of parties and what still shocks me is neither people’s questionable fashion nor their +1(s). It’s;

1. Timing

There IS such a thing as coming late. I kept receiving calls from people at 0100hrs, asking whether the party was still on. The last time I checked, house parties start at 2200hrs (give or take an hour). Some people call 2 hrs into the party to announce their journey to the party. Don't we all know at least one such person? What’s acceptable is coming fashionably late. Infact, it’s highly advisable if one is looking to stand out at a party. You’ll also have to dress the part. Every party has that hype moment and I try not missing them. Pole pole sio mwendo

 

2. Endowment

If you’ve been invited to a party, GO WITH A GIFT IN HAND. They come in many forms. It can be a bottle of alcohol or a chaser (non-alcoholics). Your +1 is NOT an endowment. Some people make exceptions where that +1 is someone very hard to come by. Doesn’t mean it’s acceptable though. It’s insulting to the host if you’ve been invited to the party, show up empty handed and be the first to criticize the event. It’s rude and you should to be kicked out!!

 

3. Dress-code

Everyone has a right to dress as they please, provided it’s acceptable to everyone. Some arrive fashionably late with a gift in hand, but a hitch in their attire kills it. I'm no fashionisto and I’ve fallen victim to this a number of times, but it something I’m working on. Some people however, insist on dressing in curtains and PJs. Most house parties will see you sleep for about 4hrs at the venue before everyone heads back to their homes. Come dressed in curtains and they won't be drawn :-)

I had a great time last Saturday. The cramp twins (Frank & Tony) livened up the place, Njomz kept the drinks flowing, music was at par with NEEMA law, a good way all-in-all to bring the semester to an end. Did I mention that I spent Kshs.700 that night? Kshs.300 went to buying fruits and Kshs.400 into the pool of alcohol. Ever tried mixing fruits with alcohol? :-)

Morning Fuel

Fuel, fuel, fuel. The most basic of needs without which we wouldn’t be able to survive. This morning fuel I’m referring to isn’t the Kshs.102 unleaded dose cars use. I’m referring to food. #sincewebeinghonest food is the main reason I wake up in the morning. It’s my innate alarm clock. It certainly works better than my phone or any alarm device I’ve ever had. It’s ruthless to say the least, but it leaves me ecstatic when I tend to it.

As mentioned a few days back, I’m accounting for my expenditure. This time round, my weekly income was spent on breakfast. It was that time of the month; you know…..when all term papers & assignments are due. So I found myself rushing to school earlier than usual to start/finish my work. I decided to buy bread. I like how it comes with a free sachet of coffee, right at the bottom, but that’s another story. Didn’t know how much it cost so I paid with a Kshs.50 note and got back two really big 5 bobs. These coins were mint in 1994, I checked. Back then, I would have paid Kshs.20 and had a blast. Now I have to part with twice that amount and a half empty stomach!! Tea is needed to compliment this and even then, it’s not filling. So I set out to find the next best alternative.

Option 1: Noodles

This could possibly be the best man-made creation since lingerie. It’s simple, effective and comes in varieties. I found that a pack of 5 costs Kshs.90 and it completely falls within my budgets range. It comes with a sachet of flavoring, which means my breakfasts can differ in taste for the same price.  I can have prawn, beef, shrimp, chicken, pork or vegan flavors at will. It’s definitely not as dry as bread and I have it all to myself. It takes all of 10 minutes to prepare from scratch. No 5-star meal can beat the simple delight of noodles made right. None!!

Option 2: Cereals

I lean towards crunchy oats and Weetabix, the latter being more budget friendly. It has been a favorite of mine since childhood and its taste has never changed. It’s a nutritious wholegrain cereal that’s high in fiber. For the price of Kshs.450, one can buy the 900g pack. It contains 48 biscuits and can last a month as follows: 24 days if eating 2 biscuits @ day or 1.5 months if eating 1 biscuit @ day. That’s about 65-130 calories oh yee healthy ones.  Add one banana to each sitting and you’ll be filled to the brim. It’s an all-time classic and it’s healthy.

I looked at it this way. Kshs.700 a month can get me either one 900g pack of Weetabix & milk to go with it (calcium is kind of important) or five 5-pack noodles & a tray of eggs (morning protein). Been taking a mix of these for the past two weeks and the results are AWESOME. My stomach gets its fill and I get to save money. Of course, I’m not lactose-intolerant and I don’t fart every time I eat boiled eggs….not that there’s anything wrong with yawning from your ass!!!

Previous breakfast budget: Kshs.1000

New breakfast budget: Kshs.700

SURVIVABILITY

Kenya can teach you a lot if you pay close attention. I'm putting up this blog because I need to account for my weekly spending. I'm not giving advice on how to spend/save that paper. I fall under the OPM group, one that relies on funding from sources other than self (if you're parents pay your school fees, wewe ni member pia). I'm hoping to show financial growth/stability over time by living within my means. That said, let me kick off with last weekend's clubbing.

Saturday happen to be a friend's birthday. It was to start at Sankara and find its way to Frankies lounge, along Ngong rd. The money I had was hardly sufficient. I had decided not to drink too much as I had had a few over the past 2 days. For the light-weight, one needs about Kshs.1500 to at least be able to cater for oneself (transport and alcohol included). I turned to my financier for help as I had only Kshs.450 on me. After much convincing, I got Kshs.500. It was certainly better than my previous amount. Getting a mat at 2230hrs heading into town is as rare as a 97 bob fueling station. I managed to find one though, and briskly made my way into Mwendas upon arrival.
Current balance: Kshs.900

One of my pals showed up a bit later with some grub...at Mwendas. Anyone who's drank alcohol knows you need a properly lined stomach BEFORE you indulge, and he did just that. Lucky for me, I took care of that while at home. We were getting late to the party and transport was going to be an issue. Our only options were to either spend Kshs.300 and make it to the party broke, or risk our lives for Kshs.40 mat at Railways. So we took a walk and somehow ended up at Dolce. We had seen a very familiar car parked outside the lounge. Turns out there's 2 doors to get by. Entrance 2 sees you part with Kshs.400 each *insert stroke*. Why would we do this you ask? All I can say is that the car held lots of potential for the both of us...pronounced: free ride.
Current balance: Kshs.500

Our venture wasn't as successful as planned. Luckily, two more friends showed up right outside the lounge. With more people available it became easier for us to take a cab to Frankies for a total of Kshs.300. The trip saw me part with a third of that total.
Current balance: Kshs.400

 This lounge can only be termed as revolutionary. Well spaced seating, open space plan, excellent lighting and free flow of OXYGEN make it a must visit. The crowd was lively, music was good and there was plenty of OXYGEN going round. It definitely left much to be desired. Sad to say, I didn't have much to spend that night. Didn't mean I couldn't have fun though. I danced a bit, socialized and even attempted cooling of a fight-in-the-making. Twas a good night all-in-all. My friends and I (7 people in total), took a cab home for a total of Kshs.1500, an advantage of car pooling might I add.You've got to learn how to bargain for cab drives and 'brokeness' is one hell of a motivator! The next morning saw me spend about Kshs.150 on transport from my friend's place in Thika to Kiambu. I bought a few edibles in the morning too.
Current balance: Kshs.50

Of course, I hadn't drink at all the previous night and was lucky enough to get a bottle of water to keep me hydrated. The poverty line for non-drinkers going it alone comes to about Kshs.1000 and Kshs.1500 for those that do. Over a period of one year, the totals come to Kshs.52000 and Kshs.78000 respectively. Evaluate your drinking. Is it a need or a want?