Advising on Retirement Planning, Savings, Investments & Insurance, Lead Consultant Hisa Africa Insurance | Key Intermediary for Absa Life Assurance & Old Mutual
Nairobi, Kenya
Joined July 2015
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This is the story of how I cleared a 10-year mortgage in 2 years
In the year 2000, I signed for my first mortgage KSh 2.7 million, repayable over ten years, with a monthly installment of about KSh 37,000. At the time, it felt significant but manageable. Like many young professionals, I believed the difficult part was getting approved. Once the bank said yes, I was ready to sit back and relax knowing that in 10 years i will be a home owner.
That is what traps most people.
When many people secure a mortgage, they celebrate the approval rather than confront the obligation. They upgrade furniture, expand their lifestyle, and slowly adjust their expenses until the monthly payment blends into routine existence. Ten years quietly becomes normal. The loan stops feeling temporary and starts feeling permanent.
I had a mentor who refused to let that happen. Stewart Henderson, who was serving as CEO of Old Mutual at the time told me something that permanently changed my understanding of debt: a mortgage is not a commitment it is an emergency.
Then he introduced a rule that, at the time, felt extreme. Every month I earned commissions, I had to bring my statement to him before spending any money. We would sit down together and allocate it.
The bank required KSh 37,000.
Stewart ignored that number.
Instead, he focused on capacity. Whenever income rose, payments rose. Whenever earnings improved, we attacked the loan. He called it ๐๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐๐ ๐ ๐ซ๐๐ฌ๐ฌ๐ข๐จ๐ง, treating debt as something to eliminate quickly rather than manage comfortably.
The first few months were uncomfortable. The natural instinct after earning more money is to reward yourself. Income creates a feeling of entitlement to enjoy what you worked hard for. But discipline does not negotiate with feelings. Every additional shilling was assigned before it reached my pocket.
Something surprising happened. As my income grew, but my lifestyle did not.
Because expenses stayed controlled, every increase in earnings accelerated repayment. The balance started shrinking visibly not yearly, but monthly. What had been structured as a ten-year obligation began to feel temporary.
Two years later, I made the final payment.
Now hereโs the surprise, after I serviced the mortgage to completion, my mentor did not congratulate late me. He simply told me to start looking for the next property.
Most people follow a familiar sequence: earn, spend, then save what remains. I learned to earn, allocate, then live on the balance. The house was not paid off by income alone; it was paid off by priority.
Over the years, advising many individuals, I have noticed a consistent pattern. Nearly everyone wants financial freedom eventually, but very few accept financial discipline immediately. The distance between the two is not measured in years it is measured in habits.
Your path does not have to begin with a mortgage. In fact, for many people the smarter starting point is elsewhere, structured savings & investments, or disciplined accumulation strategies that eventually position you for homeownership without pressure.
Alfred Mathu retweeted
โI hope this email finds you well.โ Unfortunately your email canโt find me today. ๐
Financial freedom delayed is not financial freedom denied!
Donโt be discouraged by small beginnings or slow progress.
Alfred Mathu retweeted
Ninety-one days in hospital cost one family 37,000,000 million Kenya shillings .
The motherโs entire retirement pension was wiped out, her house had to be sold, and her sonโs car was among the assets sacrificed to meet the mounting medical bills. What was meant to be a peaceful retirement had turned into a financial crisis for the entire family.
Let me tell you the full story.
I came to learn about this situation through a close friend whose mother had recently retired at the age of 61.
After many years of working, she had finally reached a stage in life when she could look forward to enjoying her retirement. She had a pension to support her, and like many people who spend their working years preparing for this season, she probably expected to spend her time enjoying the rewards of her labour.
Then, unexpectedly, her health took a turn for the worse.
She was diagnosed with two terminal illnesses and admitted to the Intensive Care Unit at one of the hospitals here in Nairobi. What followed was a prolonged hospital stay lasting 91 days. As the days turned into weeks, the medical expenses continued to accumulate.
By the time the family confronted the full extent of the bill, it had reached 37 million.
The familyโs financial position changed dramatically. Her entire retirement pension was consumed by the hospital expenses. When that was exhausted, they had to start looking for other ways to raise money.
She sold her house. Her firstborn son, who happens to be my friend, sold his car. Her second-born daughter, a banker, took a loan from her chama.
Imagine the difficult position this family found itself in. A woman who had spent years working and preparing for retirement was now depending on her children to help meet the cost of her treatment. Her children, in turn, were having to sacrifice assets and take on financial obligations they had probably never anticipated.
Even after all these efforts, the hospital bill remained unsettled.
As friends, we came together to organise a fundraiser to help the family clear the outstanding amount. When I last checked in February, they still had approximately 6,000,000 to pay.
This experience brings to mind an important question that I believe every person who is earning, saving or investing should consider: What would happen to everything you have worked so hard to build if a major health crisis occurred today?
Life comes with uncertainties. A serious illness, permanent disability or premature death can disrupt even the most carefully laid financial plans.
This is why financial planning must go beyond accumulating wealth. It must also consider the risks that could threaten what you have built.
Medical insurance, critical illness cover, life insurance and disability protection can help cushion individuals and families against some of these financial shocks. Each serves a different purpose, and the right protection depends on your circumstances, needs and the specific terms of the cover.
I often say that whatever you work so hard to earn should matter enough for you to protect it. There is little value in spending decades building wealth while leaving it exposed to risks that you could have prepared for.
Take time to review your financial arrangements. Look at your medical cover, assess your familyโs protection needs and establish whether your current arrangements would provide adequate support in the event of an unexpected disruption.
Ninety-one days in hospital cost one family 37,000,000 million Kenya shillings .
The motherโs entire retirement pension was wiped out, her house had to be sold, and her sonโs car was among the assets sacrificed to meet the mounting medical bills. What was meant to be a peaceful retirement had turned into a financial crisis for the entire family.
Let me tell you the full story.
I came to learn about this situation through a close friend whose mother had recently retired at the age of 61.
After many years of working, she had finally reached a stage in life when she could look forward to enjoying her retirement. She had a pension to support her, and like many people who spend their working years preparing for this season, she probably expected to spend her time enjoying the rewards of her labour.
Then, unexpectedly, her health took a turn for the worse.
She was diagnosed with two terminal illnesses and admitted to the Intensive Care Unit at one of the hospitals here in Nairobi. What followed was a prolonged hospital stay lasting 91 days. As the days turned into weeks, the medical expenses continued to accumulate.
By the time the family confronted the full extent of the bill, it had reached 37 million.
The familyโs financial position changed dramatically. Her entire retirement pension was consumed by the hospital expenses. When that was exhausted, they had to start looking for other ways to raise money.
She sold her house. Her firstborn son, who happens to be my friend, sold his car. Her second-born daughter, a banker, took a loan from her chama.
Imagine the difficult position this family found itself in. A woman who had spent years working and preparing for retirement was now depending on her children to help meet the cost of her treatment. Her children, in turn, were having to sacrifice assets and take on financial obligations they had probably never anticipated.
Even after all these efforts, the hospital bill remained unsettled.
As friends, we came together to organise a fundraiser to help the family clear the outstanding amount. When I last checked in February, they still had approximately 6,000,000 to pay.
This experience brings to mind an important question that I believe every person who is earning, saving or investing should consider: What would happen to everything you have worked so hard to build if a major health crisis occurred today?
Life comes with uncertainties. A serious illness, permanent disability or premature death can disrupt even the most carefully laid financial plans.
This is why financial planning must go beyond accumulating wealth. It must also consider the risks that could threaten what you have built.
Medical insurance, critical illness cover, life insurance and disability protection can help cushion individuals and families against some of these financial shocks. Each serves a different purpose, and the right protection depends on your circumstances, needs and the specific terms of the cover.
I often say that whatever you work so hard to earn should matter enough for you to protect it. There is little value in spending decades building wealth while leaving it exposed to risks that you could have prepared for.
Take time to review your financial arrangements. Look at your medical cover, assess your familyโs protection needs and establish whether your current arrangements would provide adequate support in the event of an unexpected disruption.
Good financial decisions are rarely made in isolation. Sometimes, all it takes is having the right person guide you, help you identify the gaps and show you what needs to be put in place.
Today, I extend that same guidance to others. If you want to take a more deliberate approach to protecting your wealth and securing your familyโs financial future, I would be glad to walk that journey with you.
Sometimes when you lend a friend money, you donโt just risk losing the money. You risk losing the friendship too.
Do you have a monthly budget that guides how you spend your money, or do you simply spend as needs arise and hope there is something left at the end of the month?
โขโขโข
For many people, the word budgeting immediately brings to mind restrictions, sacrifice and the idea of denying yourself the pleasures you have worked so hard to afford.
Some imagine a life where every purchase has to be questioned and enjoying your money becomes a luxury.
I look at budgeting differently.
A budget simply helps you know where your money is going. It gives every shilling a purpose, helps you prioritize necessities and allows you to enjoy your income while remaining in control of your finances.
in this video, I explain a simple approach known as the 25-50-25 budgeting formula, using an example of someone earning KSh 50,000 per month to demonstrate how you can put it into practice.
Imagine Being Broke at 65. Who Will You Call?
Being broke is exhausting.
It affects how you carry yourself, the decisions you make and even the confidence with which you interact with people. You turn down invitations because you cannot afford to participate. You avoid certain conversations because you know they may end with someone asking for financial assistance.
You have ideas, ambitions and people who depend on you, but your finances keep reminding you of what you cannot do.
For a man, particularly one with a family depending on him, this pressure can be overwhelming.
You want to provide. You want to take care of your wife and children. You want to handle school fees, household expenses and emergencies without having to borrow every other month.
And yet, sometimes, even meeting your own needs becomes a struggle. Now, imagine carrying that same financial pressure into your retirement years.
You are 65.
The alarm no longer wakes you up to prepare for work. Your working years are behind you, and the monthly salary you once relied on has stopped coming.
For decades, you woke up early, went to work, attended meetings, chased opportunities and made sacrifices to provide for your family.
But somewhere along the way, you kept postponing retirement planning.
Now, you are at a stage in life when you should be enjoying your time.
You should be able to eat well, access quality healthcare, travel occasionally, spend time with your grandchildren and enjoy the freedom that comes with having fewer work obligations.
Instead, you are worried about your next monthโs expenses.
That is why I often encourage people to think beyond the next payday.
Your salary is important, but what are you doing with it? Are you building assets? Are you consistently contributing towards retirement? Do you have investments that can support your lifestyle when you are no longer working?
Embrace Retirement Planning!!
And please, do not make the mistake of assuming that your children will automatically become your retirement plan. They will have their own families, responsibilities and financial ambitions.
Give yourself the dignity of financial independence. Do not spend your entire working life providing for everyone else only to arrive at retirement without having provided for yourself.
The Wise Man Builds Before the Storm Comes!
There is something interesting about the story Jesus tells in Matthew 7:24โ27.
He speaks of two men who each decide to build a house. One builds on rock, while the other builds on sand. Both houses appear complete. Both men have somewhere to call home. From the outside, there may be very little difference between them.
Then the rain comes. The rivers rise, and the winds begin to blow. The house built on sand collapses, while the one built on rock remains standing.
What made the difference?
It was not the storm. Both men experienced exactly the same conditions. The difference was in the decisions they made long before the storm arrived.
This is a principle worth thinking about, especially when it comes to our finances.
Many people approach their financial lives as though difficult seasons are unlikely to happen. As long as the salary comes in, business is doing well and the bills are being paid, everything seems fine.
But life does not always follow the plans we make.
A job can come to an unexpected end. A medical emergency can arise. A business can experience a difficult season. Family responsibilities can change, sometimes overnight.
These situations are not always within our control. However, how prepared we are to face them is something we can influence.
The best time to prepare for a financial emergency is when you are not facing one. The greatest mistakes we can make is assuming that because things are working today, they will always work the same way tomorrow.
Do not wait for the storm to discover whether your financial foundation is strong enough.
Use the seasons when income is coming in, opportunities are available and life is relatively stable to put the right structures in place.
You may not be able to control when the next storm comes. But you can make decisions today that will determine how well you withstand it.
Alfred Mathu retweeted
Have you ever wondered who protects your money when you invest in a money market fund?
What happens to your money after you make that deposit?
Who receives it?
Who decides where it should be invested? And who makes sure it is being handled properly?
These are important questions, especially when you are entrusting someone else with your hard-earned money. Let me explain something about Money Market Funds that every investor should understand.
Money Market Funds are part of a larger investment structure known as ๐๐ง๐ข๐ญ ๐๐ซ๐ฎ๐ฌ๐ญ๐ฌ. What makes this arrangement particularly interesting is that your money is not left in the hands of one institution to manage everything. Four different parties have clearly defined responsibilities.
The first is the ๐
๐ฎ๐ง๐ ๐๐๐ง๐๐ ๐๐ซ.
Suppose thousands of people have contributed money to a particular Money Market Fund. That money is pooled together, and someone has to decide where it should be invested.
That is the fund managerโs responsibility.
They assess available investment opportunities and decide whether the fund should invest in Treasury bills, government bonds or fixed deposits, among other permitted instruments.
So if the fund manager is responsible for making investment decisions, who makes sure investorsโ interests are being protected?๐ค
That brings us to the second party: ๐ญ๐ก๐ ๐๐ซ๐ฎ๐ฌ๐ญ๐๐.
Imagine a fund with 100,000 investors. It would be impractical to bring all 100,000 people together whenever an oversight decision needs to be made.
The trustee provides an independent layer of oversight. Its responsibility is to safeguard investorsโ interests and ensure that the fund is managed in accordance with its governing documents and applicable requirements.
The fund manager makes investment decisions, while the trustee provides oversight.
Now, if the fund manager is deciding where the money should be invested, where is that money actually kept?
Meet the third party: ๐ญ๐ก๐ ๐๐ฎ๐ฌ๐ญ๐จ๐๐ข๐๐ง.
A custodian is typically a bank responsible for holding the fundโs assets separately from the fund managerโs own assets.
This distinction matters. The fund manager makes investment decisions, but does not simply keep investorsโ money in its own operational accounts. The custodian handles the safekeeping of the assets and carries out transactions in accordance with the required instructions.
This means that the responsibility for managing the investments and the responsibility for holding the assets are separated.
Finally, there is the fourth party.
You. ๐๐ก๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ.
You are the reason this entire structure exists. You contribute your money with the expectation that it will be professionally managed, properly overseen and held under appropriate custody arrangements.
Now, think about how these four parties work together. The fund manager could experience financial difficulties. The trustee could be replaced. The custodian could encounter challenges.
In each case, the responsibilities are separated, and there are arrangements designed to ensure that one institutionโs difficulties do not automatically expose investorsโ assets to its own financial obligations.
This structure, together with oversight from the Capital Markets Authority, provides important safeguards for investors.
This brings me to something I often tell people.
If you are just beginning your investment journey, a Money Market Fund can be a very good place to start.
One of the biggest benefits of a Money Market Fund is easy access to your money. You can deposit money whenever you have some to invest and withdraw whenever you need it, without locking your money away for a fixed period.
Have you ever wondered who protects your money when you invest in a money market fund?
What happens to your money after you make that deposit?
Who receives it?
Who decides where it should be invested? And who makes sure it is being handled properly?
These are important questions, especially when you are entrusting someone else with your hard-earned money. Let me explain something about Money Market Funds that every investor should understand.
Money Market Funds are part of a larger investment structure known as ๐๐ง๐ข๐ญ ๐๐ซ๐ฎ๐ฌ๐ญ๐ฌ. What makes this arrangement particularly interesting is that your money is not left in the hands of one institution to manage everything. Four different parties have clearly defined responsibilities.
The first is the ๐
๐ฎ๐ง๐ ๐๐๐ง๐๐ ๐๐ซ.
Suppose thousands of people have contributed money to a particular Money Market Fund. That money is pooled together, and someone has to decide where it should be invested.
That is the fund managerโs responsibility.
They assess available investment opportunities and decide whether the fund should invest in Treasury bills, government bonds or fixed deposits, among other permitted instruments.
So if the fund manager is responsible for making investment decisions, who makes sure investorsโ interests are being protected?๐ค
That brings us to the second party: ๐ญ๐ก๐ ๐๐ซ๐ฎ๐ฌ๐ญ๐๐.
Imagine a fund with 100,000 investors. It would be impractical to bring all 100,000 people together whenever an oversight decision needs to be made.
The trustee provides an independent layer of oversight. Its responsibility is to safeguard investorsโ interests and ensure that the fund is managed in accordance with its governing documents and applicable requirements.
The fund manager makes investment decisions, while the trustee provides oversight.
Now, if the fund manager is deciding where the money should be invested, where is that money actually kept?
Meet the third party: ๐ญ๐ก๐ ๐๐ฎ๐ฌ๐ญ๐จ๐๐ข๐๐ง.
A custodian is typically a bank responsible for holding the fundโs assets separately from the fund managerโs own assets.
This distinction matters. The fund manager makes investment decisions, but does not simply keep investorsโ money in its own operational accounts. The custodian handles the safekeeping of the assets and carries out transactions in accordance with the required instructions.
This means that the responsibility for managing the investments and the responsibility for holding the assets are separated.
Finally, there is the fourth party.
You. ๐๐ก๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ.
You are the reason this entire structure exists. You contribute your money with the expectation that it will be professionally managed, properly overseen and held under appropriate custody arrangements.
Now, think about how these four parties work together. The fund manager could experience financial difficulties. The trustee could be replaced. The custodian could encounter challenges.
In each case, the responsibilities are separated, and there are arrangements designed to ensure that one institutionโs difficulties do not automatically expose investorsโ assets to its own financial obligations.
This structure, together with oversight from the Capital Markets Authority, provides important safeguards for investors.
This brings me to something I often tell people.
If you are just beginning your investment journey, a Money Market Fund can be a very good place to start.
One of the biggest benefits of a Money Market Fund is easy access to your money. You can deposit money whenever you have some to invest and withdraw whenever you need it, without locking your money away for a fixed period.
Open an Money Market Fund account using the link below:
client.oldmutual.co.ke/self_โฆ
If you need help opening an account or understanding how the fund works, contact my team on +254 718 065 555.
57
You probably have a friend whose salary is almost identical to yours. You deal with similar responsibilities, face similar expenses and probably receive your salaries around the same time.
Yet, if you were to examine both your financial positions closely, you might discover that one has accumulated significantly more savings, built a larger investment portfolio and has a larger net worth than the other. How do two people earning almost the same income end up with such different financial outcomes?
Imagine two people earning 150,000 a month.
The first receives their salary, pays their bills, spends on personal needs, assists family and ๐ฌ๐๐ฏ๐๐ฌ ๐ฐ๐ก๐๐ญ๐๐ฏ๐๐ซ ๐ซ๐๐ฆ๐๐ข๐ง๐ฌ. Some months, there is something left. Other months, ๐ญ๐ก๐๐ซ๐ ๐ข๐ฌ๐งโ๐ญ.
The second person earns the same amount but approaches their finances differently. They prioritise investing before spending, then deliberately allocate portions of their income to specific responsibilities, including household expenses, debt repayments, emergency savings, retirement and other future goals.
At the end of the month, both may have earned the same amount and paid similar bills. But they are not necessarily making the same financial progress.
The difference is not their income. It is how they have structured it.
This is something I constantly emphasise when discussing financial planning: money needs structure because ๐ฆ๐จ๐ง๐๐ฒ ๐ฐ๐ข๐ญ๐ก๐จ๐ฎ๐ญ ๐๐ข๐ซ๐๐๐ญ๐ข๐จ๐ง ๐ข๐ฌ ๐๐๐ฌ๐ข๐ฅ๐ฒ ๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ ๐๐ฒ ๐๐จ๐ฆ๐ฉ๐๐ญ๐ข๐ง๐ ๐๐๐ฆ๐๐ง๐๐ฌ
Many people think financial planning begins when they start earning a substantial income. It doesnโt. It begins when you deliberately decide what your available resources should accomplish.
I often describe financial planning as a journey in which money is made, managed and multiplied.
Making money is only the first part. You must also know how to manage what you earn and how to put some of it to work towards your future.
For instance, if you are a parent, your income should have a structure that considers your childrenโs education. If you have a family depending on you, you should consider how to protect them financially. If you intend to retire comfortably, you need a strategy for building retirement resources long before you stop working.
These responsibilities cannot all be addressed by hoping that your next salary increment will solve everything.
In fact, one of the reasons people struggle to make financial progress despite earning more is that their spending obligations grow alongside their income. The additional money is absorbed by a more expensive lifestyle, leaving their long-term goals just as underfunded as before.
Here are some question worth asking yourself:
When you look at what you have built financially, are you satisfied with the progress you are making?
If your entire income stopped arriving tomorrow, would the financial structures you have put in place sustain you and the people who depend on you?
Are your investments aligned with your long-term goals?
These are all very important questions. Over the years, I have helped individuals and families look beyond their monthly income to understand how they can organise their finances, protect what they have worked for and build towards the future they desire.
If you feel that you are earning but not building enough, or you simply want to be more intentional about your financial future, I invite you to have a one on one discussion with me.
Alfred Mathu retweeted
Money Is unforgetful and unforgiving: it never forgets how you treat it.
Every impulse purchase, unnecessary loan, postponed investment and unplanned expense leaves a mark on your financial position. You may forget how you spent your salary, but your bank balance will eventually remind you.
Think about it. You receive your salary, settle a few bills, send money to family, go shopping and treat yourself. Then come the weekend outings, unexpected expenses and purchases you had not planned for.
Before long, you are counting the days to your next payday.
Now imagine repeating that cycle for five or ten years! Your salary may have doubled. You may have received several promotions. Yet, your savings remain modest, your investments are limited and your debts continue to follow you
How does someone earn more but make so little financial progress?
Often, the problem is what happens to the money once it arrives.
One of the biggest financial traps is lifestyle inflation. The problem begins when your lifestyle consumes every additional shilling, leaving little room to build financial security.
Start by reviewing your last three months of bank and M-Pesa transactions. Identify where your money goes, which expenses add little value and what needs to change. Give your income a clear structure.
Account for your essential expenses, debt repayments, savings, investments and personal enjoyment. Make saving and investing deliberate commitments rather than activities you only consider when money is left over.
You do not need to start with a large amount. What matters is having a realistic plan and being consistent with it.
Remember, the same way repeated poor decisions can weaken your finances, consistent good decisions can strengthen them.
You cannot recover the money you spent yesterday, but you can decide what happens to the money you receive tomorrow.
