By mid-month, many of us start feeling that pinch — your M-Pesa balance is shrinking faster than you’d hoped. Sound familiar? It’s a common story for lots of Kenyans. Prices keep climbing — fuel, groceries, rent — while reminders from Tala, Branch or Fuliza keep popping up, highlighting just how stretched our cash flows are.
But it doesn’t always have to be this stressful. Imagine running your money, instead of it running you. The trick isn’t about suddenly earning double. It’s about using what you already have wisely. That journey begins with a budget. Not some complicated spreadsheet you’ll abandon after two days, but a simple, realistic plan that makes sense right here in Kenya, using tools you already trust, like your M-Pesa statements.
Why Many Budgets Don’t Work for Kenyans
Maybe you’ve tried budgeting before and found it hard to keep up. That’s because most of the advice out there comes from places with very different realities. Western budgets often ignore our kind of inflation, the hustle culture, or important obligations like the “Black Tax” — supporting family back home. This guide drops the one-size-fits-all mindset and focuses on what fits our Kenyan life.
Step 1: Know Where Your Money Goes
You can’t fix what you don’t see. Before planning how to spend better, look at how you’re spending now. Go through your M-Pesa and bank statements. Sort every shilling into categories. Here’s a simple table to help:
| Category | Description | Examples |
|---|---|---|
| Fixed Needs | Same amount every month | Rent, loans, insurance |
| Variable Needs | Changes with use | Groceries, KPLC, water, matatu fare, airtime |
| Financial Goals | Money for your future | Sacco savings, MMF, paying off Fuliza |
| Wants | Nice to have, not must-have | Eating out, Netflix, shopping |
| Obligations | Family & cultural | Black Tax, tithe, harambee |
Step 2: Pick a Budget Style That Matches You
Now that you know where your cash goes, it’s time to choose a plan. There’s no single right way. Pick what fits your earnings and goals.
| Method | Good For | How It Works |
|---|---|---|
| Kenyan 50/30/20 Rule | People with steady salaries | Split your pay by % — maybe 65% needs, 15% wants, 20% goals. Adjust as needed. |
| Pay Yourself First | Anyone who wants to build savings fast | Save first, spend what’s left. |
| The Hustler’s Budget | Freelancers, side hustlers | Cover essentials first, then other stuff as money comes in. |
Step 3: Build Your Budget — A Kenyan Example
Here’s how it could look for someone earning KES 55,000. Tweak to fit your own life.
| Item | Amount (KES) |
|---|---|
| Monthly Income | 55,000 |
| Rent | 15,000 |
| Loan Repayment | 5,000 |
| Groceries & Household | 10,000 |
| Transport | 4,000 |
| Utilities & Airtime | 7,000 |
| Sacco/MMF Savings | 3,000 |
| Paying Fuliza etc. | 2,000 |
| Family Support | 4,000 |
| Fun & Personal | 5,000 |
| Total | 55,000 |
Tools You Can Use
- Bank apps: Great for tracking card payments. But they miss cash & M-Pesa transfers.
- Google Sheets or Excel: Total freedom, but you enter data yourself.
- Envelope method: Best if you spend cash. Harder in this digital age though.
- A notebook: Simple kibajeti style. Just needs discipline to write everything down.
How to Stick With It
Making a budget is easy. Following it — that’s the hard part. Automate your savings if you can, check your plan once a week, and always have a small “miscellaneous” pot for surprise expenses. Slip up? It happens. Learn, adjust, and keep moving.
Frequently Asked Questions
How much should I save?
If you can do 10-20%, awesome. If not, even 1,000 bob a month is a good start. The habit matters more at first.
What if I don’t have a regular income?
Use the Hustler’s Budget. Cover your must-pays first. The rest goes to savings and goals as it comes.
Does the 50/30/20 rule work in Nairobi?
Often no — rent and fares can be too high. Use it as a rough guide, not a rule carved in stone.
How do I budget for family support?
Treat it like rent or food. It’s a real, regular cost. Decide how much you can give without hurting your own budget.
End of the day, the goal isn’t to be perfect. It’s to be a bit better with money each month. That’s how you build real peace of mind.