Saving money can feel nearly impossible for individuals earning just enough to meet daily expenses. But even on a tight budget, there are simple and effective strategies that low-income earners in Kakamega can use to gradually build savings and achieve financial security. The key is to be intentional, disciplined, and consistent.
1. Start with a Budget
Begin by tracking your income and expenses. List everything you earn (wages, side hustles) and everything you spend (food, transport, rent). Understanding where your money goes allows you to identify areas to cut back and redirect funds into savings.
2. Set Small, Realistic Goals
Don’t aim to save a huge amount at once. Start with small, manageable targets—for example, saving KES 50 to KES 100 per week. Over time, these small amounts accumulate and help build confidence in your saving ability.
3. Use a Savings Jar or Mobile Wallet
If you don’t have access to a bank, use a secure savings jar at home or register for a mobile money wallet with a locked savings feature. Tools like M-Shwari or mobile SACCO accounts are popular among Kakamega residents for their accessibility.
4. Join a Chama or SACCO
Group savings schemes like chamas or local SACCOs offer structure, accountability, and sometimes interest on deposits. Contributing regularly to a group can help instill discipline and open access to small loans or emergency funds.
5. Cut Non-Essential Expenses
Review your spending habits. Reduce unnecessary purchases like daily snacks, non-essential airtime, or frequent boda-boda rides when walking is possible. Redirect even KES 20 saved daily into a savings pool.
6. Embrace Bulk Buying and Budget Shopping
Buying food or household goods in bulk—especially with neighbors or family—can lower costs. Also, shop at open-air markets and compare prices across shops in Kakamega town or rural centers.
7. Save Before You Spend
Adopt a “pay yourself first” approach. As soon as you receive your income, set aside your savings amount before spending on other items. Treat savings as a non-negotiable “expense.”
8. Avoid Debt for Lifestyle Expenses
Avoid borrowing money for non-essential expenses like luxury items, entertainment, or impulse buys. Debt can quickly eat into your income and prevent you from saving anything at all.
9. Look for Side Hustles
Find simple ways to earn extra income—such as selling second-hand clothes, offering cleaning services, baking, or farming vegetables. Even small additional earnings can make a big difference in your ability to save.
10. Reward Yourself
Saving on a low income is difficult and requires discipline. Celebrate small milestones to stay motivated. For example, after hitting a three-month savings goal, treat yourself to something modest as encouragement.
Conclusion
Saving money as a low-income earner in Kakamega isn’t easy, but it is achievable. With discipline, creativity, and community-based tools like SACCOs and chamas, even the smallest earnings can be managed wisely. Building a habit of saving lays the foundation for long-term financial stability, emergency preparedness, and future investment opportunities.
References
- Financial Sector Deepening Kenya – Household Financial Behaviour Reports
- Kenya Bankers Association – Savings and Budgeting Campaign Guides
- Association of Microfinance Institutions of Kenya (AMFI-K) – Financial Literacy Programs
- Kakamega County SACCO Listings – Office of the County Cooperative Director
- Central Bank of Kenya – Mobile Wallet Savings Products Overview
