Top 4 Reasons Why Poultry Farming is so Lucrative in Kenya

Modern Day Poultry Farming in Kenya
Poultry Farming has become one of the most lucrative Kenyan businesses, and is arguably the big thing in Kenyan agriculture. Many big businesses, entrepreneurs, retired uncles, job seekers and Kenyans living overseas are making inroads into the sector, either to pursue their keen interest in livestock farming or to rake in big money.

In the last decade Kenya’s poultry farming industry has changed into a full-blown sustainable business sector, and contributed greatly to the nation’s economic stature.

Like me, there are numerous supporters of poultry farming in Kenya, who in some way or another, are trying to draw focus and promote this old but growing sector, and highlight its benefits. The most notable feature of poultry farming is that it ensures phenomenal returns in a blink of an eye, but it is also sensitive. With a population of about 46 million, where most citizens consume poultry products on a regular basis, Kenya is a lucrative market that continues to grow.

Why Choose Poultry Farming?
One of the reasons behind the dramatic rise of poultry farming in Kenya is the non-dependence on educational background. Every citizen can practice the occupation, irrespective of his or her educational status.

The profession can also be pursued with limited capital and resources, but huge return on investment is assured, if you are meticulous and diligent in how you set up and run your operations.

Another reason for the rising success of this field is the growing rate of chickens. A chicken becomes fully-developed and matures quite faster. For instance, a goat takes a time span of 2-3 years to mature completely, but within 28 weeks from birth, a chicken can reach a fit state and size that it can be sold at market.

Let’s take a deep look into the benefits of poultry farming in Kenya

1. Reproduction Rate of Chickens: Business in Poultry Farming in Kenya never leaves you barehanded because you never run out of stock. An average chicken hatches eggs almost every day and four times in a week. Some breed of chickens can produce around 325 eggs a year. By this account, your chickens will produce one egg a day that you can sell every day of the year. Leaving out some dry days. If these figures are anything to go by, a chicken can give birth to another chicken twice in three days. Talking bigger, if you breed 500 layers, they will reproduce an astounding 12,000 chickens within a time gap of just 40 days.

2. Chickens Mature Faster: As discussed earlier, a baby chick becomes a full-grown, egg-bearing chicken in a jaw-dropping 28 weeks. This means a pullet is ready to be sold in market as a full-feathered chicken in just seven months. Taking into account such a fast-development process, a farmer can reap returns on investment within 34 weeks of the farm being in operation.

3. High Value, Good Price: Without a doubt! Raising your own flock of chicken will make you realize how lucrative poultry farming is in Kenya. In Kenya you can sell a chicken for meat for 1,000kshs and make up to 500,000kshs income in a month.

4. A Rich Source of Protein: Poultry products are a tremendous source of protein, and a key nutrient for a healthy mind and body. Protein is essential for body functioning, energy and muscular development. Also, poultry products are delicious, great in taste and can be used in a range of Kenya, African and worldwide dishes. For these reasons alone, it is safe to say that the demand for poultry products will never diminish.

For me, poultry farming is the best bet if you’re considering entering the lucrative world of agriculture. As long as you follow the basic rules that I outlined in my previous blog post, it is a clear-cut source of wealth.

6 Critical Investment Questions?

Someone much wiser than me once said that if you don’t know where you’re going, any path will get you there. This couldn’t be truer than when it comes to investing. And often it will be a lot more dangerous. So there’s never a bad time to become wiser about your investing process. If you learn something today that you didn’t know yesterday, it will help you tomorrow.

Of course, you have to understand that investment risks cannot be eliminated, but they can be understood and managed to some degree. If you start the process by knowing the answers to the six questions that follow, your risks should be greatly reduced.

  1. What investment do you want to buy?
    Whether you’re interested in stocks, mutual funds, exchange traded funds or other investment, what you buy is really up to you (and not the focus of this particular article). Whatever your process of selection, I assume you have found something you feel good about for the right reasons. My team and I certainly have a very clear process for selecting the investments we choose for our clients, and you should too.
  2. Is now a good time to buy it?
    This is a tougher one to answer. It will likely depend on several issues: Is the overall market positive or negative? Is the sector or asset class you are looking at positive or negative? Is the price attractive? Based on what criteria? The list of considerations may seem daunting, but all of these questions are important to understand before investing.
  3. How much of it should you buy?
    This has proven to be the most misunderstood question that we’ve come across over time, and I’ll provide a more detailed answer in a moment.
  4. What do you do with it if it’s a winner?
    Do you have a specific plan of keeping it or selling it at some point? Successful investors have this determined before they buy.
  5. What do you do with it if it’s a loser?
    Not all good ideas work out as planned. You need to know at what point you will dump a loser, and you need to know that price point before you buy it. Otherwise, all of this becomes a guessing game.
  6. What do you do with it if it’s simply a laggard?
    This is something that most people we’ve had this discussion with have never thought about. If your dollars are just sitting there in a lagging investment, are there other investments that would be more productive or have more potential? Again, having a process to determine this in the beginning will result in better investment outcomes.We’re now back to the issue of how much to buy. This is by far the most difficult question. And one that rarely has a satisfactory answer, in my opinion.
    Rather than simply picking an arbitrary percentage of your overall portfolio or an arbitrary number of shares, why not base it on how much risk you want to take with that specific investment?

    Let’s examine this process: We’ll assume you have a Ksh 500,000 portfolio and are willing to risk 1% of that on any given investment choice. That equals Khs 5,000 of risk. Let’s say the stock is selling for Ksh40 per share, and you have determined that if it falls to Ksh 35 you will sell it because it’s a loser as discussed above. You now have Ksh 5 of risk–the current price minus the stop loss price–so divide the risk of Ksh 5 into the portfolio risk of Ksh 5,000, and you get 1,000. You buy 1,000 shares.

    You have taken 1% risk to buy the stock, and it represents Ksh 40,000 of value, or 8.0% of your portfolio. Does that seem like too high of a percentage? Why? You have clearly defined the amount you are willing to risk, and logical math does the work. There is nothing arbitrary here.If the price falls to Ksh35, you sell it. It’s a loser.

    If the price moves up to Ksh 50, things are looking good. You could sell it or simply move up your stop loss price up to Ksh 45, which will now represent your 1% risk factor for this specific investment that you had to start with.

    You can keep doing this if the stock continues to increase in price. Or you could sell some of it or all of it, take your profits and move on to the next idea.You now have the answers to all six of the questions asked. What, when, how much, as well as what to do if it’s a winner, loser, or laggard.Isn’t it nice to have the answers before the question is asked? Of course it is!This process gives you answers and should also give you better investment results without the worry of not knowing what you don’t know.

Betting, gambling or investment?

Sports betting is the newest thing taking Kenya by storm following the fall of casinos a practice that has affected a large number of the Kenyan people especially the male youth. Despite the fact that most of its lovers would prefer to view it as an investment where you place your money with an aim of getting it later with a benefit, the bitter truth is that the practice is actually a legal form of gambling which also brings the lotteries on board. By definition  gambling and betting is a game of chance where you can either win or lose. Let no one lie to you-gambling and betting are one and the same.I have watched people celebrate especially when they hit a jackpot. How beautiful it is when those who have hustled all their lives get an opportunity to be called millionaires. Many young people are hitting mind-boggling fortunes.
file-57b04fdac5d3c“Gambling can best be defined as a social disease, motivated by economic reasons. Gambling and betting is the worst “source of income” that anybody can ever depend on. Any country whose citizens depend on such chances for survival is at the verge of losing many of its subjects to poverty, scarcity and lack.
A student at Kabianga University has committed suicide by hanging himself after he allegedly lost all his tuition money to a Sportpesa bet. The student who was identified as Edwin Mogaka was found hanging from a tree inside a small thicket near Kabianga University. Its alleged that Edwin lost a bet of 20,000 during a recent Chelsea Vs Liverpool match, where Chelsea lost 2-1. Just last month, a man committed suicide after he lost a Sh 45,000 to Sportpesa. Together with his wife, they had borrowed the money from a local commercial bank for a family development project, but be first decided to ‘invest’ the money in a Sportpesa jackpot bet. He lost all of it and thats when he made the radical decision. Another man who works in a Nairobi bank lost Sh 450,000 to a bet. The money was also loan they had borrowed from Equity bank with his wife. (http://news-kenya.com/2016/03/13/kabianga-university-student-commits-suicide-losing-school-fees-sportpesa/)

Why people play

  • Get-rich-quick desire
  • Greed
  • Hopelessness

Here are the reasons distinguishing betting from investing?

When one places a bet he has nothing tangible for the reason apart from the confidence he has on the team, unlike in an investment where one considers a number of things including the probability of getting something back, business location, legal procedures like licencing and business partners.

In an investment, the investor has to do several follow ups to ensure that everything is well or even spend much of their time supervising their investments.Also, unlike in an investment where one stops to venture into other businesses in an event that the returns are low, sports betting is addictive.In sports betting the bettors only want money to spend at the moment while in investment the investor bases the idea on the future as the investment, if successful can be sold to another person at a higher price or passed down to a heir. So Be Wise And Invest.

SITE VISIT TO NDARAGWA ON SATURDAY 16th JULY,2016

Project to boost low income earners

Kenya’s lower middle class, the segment that makes the majority of the working population are earning enough to pay rent, fuel their cars, feed their families and not much more.According to a Kenya National Housing Survey report, 80 per cent of the country’s population lives in rentals, spending upwards of 44 per cent of the family income on rent. The United Nations recommended expenditure is 30 per cent.“There is a lot of talk about affordable housing with many investors coming into the country riding on provision of such,” says Anthony Mbogori, an investment banker. “However, when they get here, the gated communities that they plough their billions into end up affordable only to the wealthy.
Most of the houses in projects from the ones in Athi River to those in Thika are averaging Sh10 million, way above most Kenyans reach.” Mbogori insists that what the country needs is a local solution, by local investors. “When we wait for foreign investors to come in and solve our issues, that won’t happen.They are interested in profits, and who could blame them. We need Kenyans to look at the bigger picture and provide housing for the neglected lower middle class.” And it seems his reasoning isn’t just hot gas. A Kenyan entrepreneur is building 2,280 housing unit that will retail at between 1.2 and 2.2 million.Called Chosen Green city, the project is seating on 300 acres of land at Kenol-Kabati, 11 kilometers from Thika Highway. “Murang’a was placed under Nairobi metropolitan last month after recognising the role counties neighbouring the Capital can play in decongesting it,” said Murang’a Governor, Mwangi wa Iria, who officially broke ground for the project.“Projects like these are now more than ever so timely as Nairobi’s land and houses have become unaffordable, yet our people need decent houses to bring up their families.” The estate is being constructed by Gakuyo Real Estate ltd, a firm started and run by renowned businessman and preacher, Reverend David Ngari.
It will consist of 1,080 one bedroom units retailing at Sh1.2m, 750 two bedrooms going at Sh1.5m and 480 three bedrooms at Sh2.2m each. The controlled development will also have a bus shuttle service to ferry residents to and from Nairobi, evenings and mornings, free of charge.But perhaps the most ingenious bit is the mode of payment. You book the house with a Sh100,000 deposit, join Ekeza Sacco, save for six months and the Sacco buys the house for you. “We have been in the business for 18 years and do understand that it is very hard for Kenyans to get the lump sum to buy a house even if they could raise the deposit.That is why we thought to innovate by integrating Ekeza Sacco in the plan, such that after saving Sh400,000, you can move into your house and repay the Sacco the rest of the amount in easy, installments and at 1 per cent interest rate,” explained Rev Ngari. The Sacco was recently feted by Safaricom as top in Lipa na Mpesa transactions.
On a traffic free day, the Chosen Green city is 20 minutes from Thika town and 50 minutes from Nairobi. It will also include a 3 star hotel, a school and a police post. “Instead of stashing money in foreign bank accounts, earning a measly interest, we should invest back home and make better money as we support the governments efforts in settling our people,” said Ngari.

Ekeza Sacco emerges Safaricom’s top leader in Lipa Na Mpesa transactions

Safaricom on Wednesday awarded Ekeza Saving and Credit Co-operative Society for being a market leader in Lipa Na Mpesa transactions in the central Kenya region.

Speaking during the award ceremony in Ekeza sacco offices in Thika, Safaricom CEO Bob Collymore said Small  and  Medium  Enterprises  (SMEs)  are  perceived as  an engine of  growth  in  Kenya  yet they are facing formidable  constraints  that  hinder  them  from  realising  their  potential.

“For instance Ekeza Sacco is offering competitive rates in loans and flexible repayments, where Kenyans can realise a dream of owning property in this country. Safaricom will continue to initiate and disseminate new technologies, products, processes and business models that will benefit SMEs,” Bob said.

Safaricom will work closely with Ekeza sacco in its efforts to automate its processes, added Bob Collymore.

Ekeza CEO David Ngare (Pictured) said Safaricom’s Lipa Na Mpesa service has helped the Sacco reached the unbanked population in this country. “Most of our customers do not even have conventional bank accounts, but since we adopted Lipa Na Mpesa we have reached the unbanked population in this country.

Market access still remains a critical constraint to our growth but with the help of Safaricom we have managed to remain competitive,” Ngare said.

Safaricom’s Lipa Na M-PESA has in the recent past overtaken all other means of cashless transactions and emerged as the most preferred method of making payments without cash among customers in Kenya.