13 Passive Income Ideas In Kenya?

Passive income is the Holy Grail for politicians, new university grads, and pretty much anyone who aspires to be rich . It’s exactly what it sounds like: money you make without actively working or operating a business.

Unfortunately, most people only think about active income when planning their careers. That’s why so many people struggle to pay their loans and grow their savings. Luckily, there are plenty of ways to generate passive income.

This article will introduce you to some great ideas for creating passive income streams and help get you started on your path toward financial independence. Let’s look at them all and see which might be right for you.

What is passive income?

 Passive income is any type of income that requires minimal work to generate and maintain, and there is little or no need for continuous active work. It’s income generated automatically, giving you residual earnings with minimal effort.

Most passive income ideas require initial time and money investment. You will need to ensure things are on track, after which you will need minimal effort to earn. Passive income should ideally accrue interest, dividends, or appreciation with time without a significant amount of effort. It is one of the best strategies to increase your income and diversify your investment portfolio.

Passive Income

 Active income vs. passive income

 Active income is money received for performing duties such as working full time and receiving a salary or tips or commission, whereas passive income is earnings received from an income-producing asset.

Active income requires you to work up to 8 hours every day for you to earn your regular salary, whereas passive income only takes initial effort and ongoing upkeep.

How to Get Passive Income

You can generate passive income through the following.

Reasons why you should build a passive income

  • It helps improve your financial stability. This is because it relieves the strain on your income and provides you with more resources.
  • It gets you a step closer to achieving your goals. This is because it gives you more financial freedom to help you follow your passions.
  • It helps you reduce financial stress as you are no longer worried about your finances.

10 Passive Income ideas in Kenya

There are several ways to invest in passive income. We divide them into three categories.

1. Investing

This involves investing your savings to earn more money.

A high-yield savings account

 This type of account often offers substantially greater interest rates for money deposited on it compared to any other account. Depending on the bank of your choosing, a high-yield savings account gives an interest rate of up to 7%.

To maximize your savings, you should take into account one with a greater interest rate. There are also other factors to consider, which include:

  • Easy access to your money. Some accounts have a maximum number of times that you can withdraw per month, while others take up to 3 business days to process a withdrawal.
  • A minimum balance is required to sustain the account. Some accounts have a minimum amount required in the bank account to keep the account active.
  • Fees and penalties. Some banks impose a penalty if you do not meet your minimum balance, while others have processing fees.

To open a high-yield savings account, go to your local bank and ask about their accounts. Depending on their rates, pick one that is best suited for you.


  • Interest is earned on the money deposited.


  • There is a cap on how many times you can access your money per month.
  • The interest earned depends on how much you save. Higher savings will earn more interest.
Bond ladders

 These are multiple bonds that mature at different intervals at different periods over years. The gaps in the maturity stages enable you to reinvest your money.

Bonds are a relatively safe way to grow your income. They have lower volatility and are a great addition to your portfolio.

You can buy bonds at regular intervals that will mature at different stages in years to come. Find information about bonds on the Central Bank of Kenya website. You need to have a minimum of Ksh 50,000 to invest in bonds.

Here is the information on the current bonds on issue.

Passive Income
Current Bond 10/15 years
 Rental Properties

 What is a much better way to create income than having regular cash flow from rental properties? Owning a rental property is a surefire way to secure your future. 

Creating a passive income from rental properties usually entails doing the heavy lifting upfront and then reaping the rewards years later. 

If you don’t already have rental property, the first step is to identify one that you want to purchase, buy it, and then rent it out.  You can also decide to construct yours depending on your budget.

Once the heavy lifting is done, you can register your property with an agent or market your property. Sit tight and start enjoying your income.


  • Aside from the monthly income that comes from rent paid, your property also appreciates.
  • You get regular cash flow from the rent collected from the tenants.
  • Your property keeps up with inflation, so you won’t lose money.


  • It is risky, especially if you get a place that is not secure or doesn’t have any flow of tenants.
  • It’s not easy to liquidate if you need quick cash.
  • It needs regular maintenance.
  • Management of rental properties may be challenging.
  • It may take years to get a return on your property.
Invest in stocks.
 Although the stock market can be confusing, it is a great way to earn passive income. It should be considered a long-term method of investment. The best companies increase their payout over time.

The goal is to diversify your stake to reduce risks. As a shareholder in a company, you will receive payments at intervals from the company, prorated according to your investment.

Various companies pay out their dividends based on the profits made. The profits are shared according to who has more shares. So the more shares you have, the higher the payout.

In Kenya, you will need to buy stocks through a stockbroker. Open a CDS account and do your research on the best stockbroker.


It is passive as all that is required is the initial investment.


The risk is great if you do not choose the right stock.

Asset Building

Building an asset requires time and money. Here are some of the assets you can create to earn a passive income.

Digital Products

Digital products such as recipes, e-books, and lesson plans will earn you a passive income. It takes time to create a digital product and market it, but you will be able to earn from it passively. Here is a breakdown of digital products you can create.

Create an online course

 If you have any specific skills or knowledge in a given area, this can be a good way to earn passive income. It may be in the form of notes, prerecorded material, examinations, or any other necessary material required for learning.

All you have to do is prerecord your classes and prepare any notes you may require for those classes. It would be better if you grouped them into subtopics to make it easier to follow.

Also, choose a platform to host your course. You can choose a variety of things from teachable, udemy, edx, skill share, etc. Alternatively, you can create a website to host your course.

You can also decide to write an eBook from the knowledge you possess and sell it online. You can sell them on Facebook, Smashwords, eBay, etc.


It only requires you to create the content once, and you are good to go.


It takes a lot of time to create the initial product.

Affiliate marketing

 This is one of the best opportunities to make a passive income. Almost every well-known brand has an affiliate program. If you have a large following on social media, this can be a good way to make money.

All you have to do is work with your local brands such as Jumia, Kilimall, Denri, etc., and then market them on your website or social media platform. You are given a code and every time someone uses it to purchase an item, you earn a commission.

You can earn an income by reviewing and promoting just about any product. To earn a decent income, make sure you have quality content on your website or social media platform.


You earn a commission from every sale.


Your income is not stable as it depends on the number of times your link is used.

Create an app

Monetize your skills by creating an app that solves a problem and selling it via the Google Play store. Look for problems around you and create a solution through apps.


  • Earn money while following your passion.


  • It requires updates and maintenance.
  • May require hefty fees to host the app.
Create a blog or a YouTube channel.

Take your passion and turn it into a blog or a YouTube channel. Pick a niche and become an expert in it. You will need to put in the work and a bit of finance to draw in the audience. Eventually, it will earn you a passive income.

Create a YouTube channel or blog about something you are passionate about. You can check how to create a YouTube channel here. Make sure you add quality content to draw in the audience. Once you have 1,000 subscribers, you can start earning an income.

If you opt to create a blog, you have to choose a platform such as WordPress. Post content and start advertising it to your followers. Also, make sure the blog is optimized for search engine optimization.


You can use low-cost platforms to start


It takes time to create content. You will have to continuously add content to remain relevant.

Create templates.

You can create templates and sell them. Apps like Canva, and WordPress allow you to create templates and sell them. Templates are one of the best sources of passive income. There is no additional work needed after creating the templates.

To start creating templates, sign up with Canva or your favourite platform and let your creative juices flow. Follow the creation and submission guidelines and watch your earnings grow.


It’s one of the best sources of passive income. The earning potential is limitless.


You will need to put in work and market your templates.

Take time before you make the money.

Asset Sharing

Rent out your spare room.

Do you have a spare room and you have no idea what you are going to do with it? Or are you planning on taking a trip for a while and your house will be empty for the said period?

You can choose to place your house on Airbnb or any other app to rent out your place.

While renting out a single room earns a great passive income, renting out gives more income. You can choose to buy more properties for the sole purpose of renting them out.

Although it requires work upfront, like furnishing your place, taking nice photos, advertising, etc., it is a great way to earn passive income.

Sponsored social media posts to market products.

If you have a large following on social media, use the platform to market products. Companies will pay to review and recommend their products. You have to keep adding content to your profiles to draw the audience.

Do your research and identify a product that appeals to your target audience. Create content and monetize your blog posts.

Advertise available properties for sale and rent.

Although this may take time before earning an income, you can make a great deal of money. Determine your target audience and begin advertising properties on your social media platforms.


No capital input is required.


May take time before you see results.


There is no limit to how much passive income you can make. Finding different ways to achieve financial freedom will help you achieve your goals quickly. You might be able to buy your dream car or go on that dream vacation. Whatever it is, having a passive income will help you achieve your financial goals in a shorter time.

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