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The Hidden Cost of Your Returns: An Honest Look at Investment in Kenya

"It is not only what we do, but also what we do not do, for which we are accountable."— Molière

I. The Promise of Profit

Everywhere you turn in Kenya today, someone is encouraging you to invest.
From financial influencers on TikTok to WhatsApp investment groups to that uncle who now owns three plots in Nanyuki — the message is loud and clear:

"Don’t let your money sleep. Put it to work."

We are living in the age of the investor. From TikTok to Telegram groups, from SACCO WhatsApp circles to finance podcasts, everyone seems to be an expert on how to grow your money. Bonds. Land. Money market funds. Buy shares. High yield apps. Crypto. Build apartments. Flip land. 

And it sounds harmless. Who doesn’t want financial freedom, passive income, or generational wealth?

But in our race to grow money, a hard question lurks in the shadows:

Do we know where our money goes once we invest it? Do we care who or what it hurts on its way back to us as profit?

II. A Brief History of Investment

The modern investment model was built in the West — by and for the wealthy. Originally, investments were designed as capital-raising tools for large ventures like overseas trade, colonization, and infrastructure.

From the start, the system was exploitative — built on profits from slavery, land grabs, and resource extraction. But the structure endured.

In Kenya, investing was historically the preserve of the elite. But mobile money, digital platforms, and collective investment schemes have now opened the door to a growing middle class.

What hasn’t changed? The system still rewards profit. But rarely questions how that profit is made.

III. "Clean" Money, Dirty Roots: Real Kenyan Examples

Let’s peel back the curtain on a few common investment routes:

1. Real Estate and Land-Banking

How it works: You buy land on the outskirts of towns or through a sacco/chama for appreciation or resale.

But ask yourself:

  • Was this land genuinely for sale or grabbed from a marginalized community?

  • Who was displaced to make way for that gated community or resort?

In Lamu, parts of Kajiado, and even Nairobi outskirts, ancestral land has been repossessed under murky circumstances, with locals often compensated unfairly or evicted entirely.

Result: You sell the plot 3 years later for a double return — without ever knowing you profited from historical theft.

2. App-Based “High-Yield” Schemes

How it works: You put in KES 10,000 into a flashy app or a private group and get 30% returns in 30 days. Many Kenyans have fallen for this. For a while, it works.

But behind the scenes:

  • New investors fund old ones. This is a Ponzi.

  • Some use your money to fund gambling operations, black-market dealings, or political campaigns.

  • When the scheme collapses, not only do you lose — but so do your friends, colleagues, and family.

Recent case: A Nairobi-based digital platform that promised “double returns” conned over KES 9 million from Kenyans in less than 6 months before vanishing.

3. Corporate Shares and Dividend Funds

You’re told to buy shares in “blue-chip” companies. Many don’t know:

  • What the company actually does.

  • How it treats its workers.

  • Its environmental or political impact.

Example:

  • A major Kenyan agro-export company pays shareholders handsomely.

  • But local investigations found that it uses harmful chemicals, underpays laborers, and has been linked to gender-based abuse on its farms.

Your dividend = their suffering.

4. Micro-Financing and Digital Loans

You invest in a digital lending platform.

What happens?

  • Poor Kenyans are charged 200–300% APR.

  • Harassed by debt collectors.

  • Blacklisted on CRB for life.

You’re earning profit from financial entrapment.

IV. Why We Don’t Ask Questions

1. “It’s Just Business” Culture

Kenyans are taught not to mix morality with money. But that separation is dangerous. Because money is never neutral — it always comes from somewhere.

2. Scarcity Mentality

When you’ve been poor, you stop caring how the sausage is made — as long as it fills your plate. Ethics become a luxury.

3. Financial Illiteracy

Few understand how investments truly work. Most investors don’t read prospectuses or understand risk. They rely on influencers or word of mouth.

V. What Makes an Investment Ethical?

An ethical investment is one where:

  • The source of returns is transparent and fair.

  • No communities are harmed or exploited.

  • Labor is paid fairly.

  • The environment is not damaged.

  • The company abides by human rights and corporate responsibility.

Ask:

  • How is this company making money?

  • Who runs this? Do they have a track record?

  • Who are their suppliers?

  • Are workers protesting? Are tenants suffering?

  • What is their track record on labor and environmental justice?

  • Would I be proud to tell my children where my profits came from?

  • Look for real assets or services. If there’s no tangible value, walk away.

  • Check your values. Are you okay with how this money is made?

Are There Ethical Investment Options in Kenya?

Yes — but they require effort, information, and a different mindset.

  • SACCOs with ethical mandates — supporting housing, education, agriculture.

  • Impact funds — that prioritize social returns as much as financial ones.

  • Investing in businesses you understand — even if smaller returns.

  • Crowdfunding community projects — with clear outcomes and oversight.

  • Supporting cooperatives, women’s groups, youth initiatives.

VI. The Due Diligence Dilemma

Doing ethical research in Kenya is hard. Why?

  • Public data is limited or hidden.

  • Media is often gagged or biased.

  • Regulatory bodies are weak or compromised.

But some tools can help:

  • Check Transparency International Kenya reports.

  • Use Kenya Gazette archives for land and corporate records.

  • Read parliamentary committee reports for scandal records.

  • Talk to locals before buying land or investing in new regions.

  • Ask uncomfortable questions.

VII. The Call to Conscious Wealth

Ethical investment is not about being perfect. It’s about being conscious.

It’s about rejecting the idea that “as long as I profit, it doesn’t matter how.”

It’s about knowing that if your money hurts someone, then it is your problem — even if you never see their face.

We need to normalize asking:
“How was this money made?”
“At what cost?”
“To whom?”

You may still choose to invest — but at least do it with eyes wide open.

Because not every profit is worth the price of your conscience.

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