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Stanbic Bank: Building Financial Resilience · The Mwango Capital Podcast

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  Thank you all for joining us this Car's Day evening for another
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  edition of Mwango Spaces.
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  SPEAKER_00: We have a special guest with us.
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  He's from Stanby,
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  Kenny,
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  and he's going to explain to us what he does there.
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  SPEAKER_00: So I'll introduce you in a few.
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  SPEAKER_00: My name is Eric Mokai.
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  SPEAKER_00: I'm the founder of Mwango Capital.
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  SPEAKER_00: Kingori, karibu sana to Mwango Spaces.
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  SPEAKER_00: I know it's your first time here on Spaces.
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  SPEAKER_00: I think generally on Spaces too, it's also your first time.
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  So I'll give you this moment to briefly introduce yourself and
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  say what you do.
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  SPEAKER_00: Thank you very much.
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  SPEAKER_01: It's a real pleasure to be here with your audience.
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  SPEAKER_01: As you said, my name is Kemori, Kemori Gavinji.
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  SPEAKER_01: I'm the head of investments and financial fitness at Stanbik Bank,
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  SPEAKER_01: Kenya,
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  SPEAKER_01: which is part of the Standard Bank Group of South Africa,
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  which is the largest bank on the continent by assets and has
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  been present on the
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  SPEAKER_01: continent for over 160 years,
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  SPEAKER_01: has been present in Kenya in different iterations for over 100 years.
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  SPEAKER_01: And we say Kenya is our home.
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  SPEAKER_01: We drive her growth.
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  SPEAKER_01: Africa is our home and we drive her growth.
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  SPEAKER_00: Break down a bit about what you do.
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  SPEAKER_00: You're the head of investment and then you're for financial fitness.
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  SPEAKER_00: Break down those two kind of roles.
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  SPEAKER_00: They're things separate and at the same time linked.
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  SPEAKER_00: So you can give us a bit of flavor on what those entail.
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  SPEAKER_01: Absolutely.
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  SPEAKER_01: I normally get more interest in the financial fitness.
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  It is a catchy phrase that it's one we've actually trademarked
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  as a group,
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  SPEAKER_01: the Financial Fitness Academy.
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  But perhaps I can start by talking about what I do as a head of
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  investment.
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  So as an integrated financial services organization,
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  this is Stanbeck Bank.
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  SPEAKER_01: We have a range of capabilities across our footprint.
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  SPEAKER_01: There's many things we can do to put it in simple language.
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  SPEAKER_01: But with these different capabilities,
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  SPEAKER_01: when our clients walk through our doors or pick up the phone,
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  it's often helpful to speak to somebody who can help you make
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  sense of it all.
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  SPEAKER_01: So my job is I work as an intermediary within the bank.
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  SPEAKER_01: I take capabilities that we have in different parts of our bank,
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  SPEAKER_01: from our global markets team,
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  SPEAKER_01: to our securities business,
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  SPEAKER_01: to our investment banking business,
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  SPEAKER_01: and I bring them to bear on issues that clients bring to our attention.
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  So essentially,
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  I'm helping you navigate the Sandvik Bank system along with my
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  team.
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  SPEAKER_01: So whether you're looking to invest in stocks,
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  SPEAKER_01: bonds, structured products, money market funds.
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  We are there to help you figure out how you can put it all
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  together to work for you.
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  SPEAKER_01: So that's what I do as the Head of Investments.
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  SPEAKER_01: In the Financial Fitness Academy,
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  SPEAKER_01: a program I run with a colleague of mine,
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  SPEAKER_01: Elsie Minor,
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  SPEAKER_01: what we're doing there is financial literacy on steroids.
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  SPEAKER_01: So we're saying financial literacy is well understood.
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  SPEAKER_01: People know the idea, and I know Mongo has done a lot in this space.
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  SPEAKER_01: But we are saying as a financial service organization,
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  we believe we can take it one step further to application in a
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  very practical way.
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  SPEAKER_01: And at the Financial Fitness Academy,
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  SPEAKER_01: we work with our partners,
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  SPEAKER_01: with our clients,
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  with different individuals to help them actualize the things
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  that they know about
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  SPEAKER_01: money and put them to work with the solutions we have available.
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  SPEAKER_01: I hope that makes it a bit clearer what it is that I get paid to do.
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  SPEAKER_01: We can start with the financial fitness.
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  SPEAKER_01: How do you declare someone financially people?
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  SPEAKER_01: Absolutely.
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  SPEAKER_01: And goals are important.
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  And sometimes working towards goals,
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  even though they seem elusive,
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  is important.
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  And I really do applaud the work that Mwango Capital is doing
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  and other players in
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  SPEAKER_01: the market are doing in trying to get people to be more in control.
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  SPEAKER_01: of their finances.
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  SPEAKER_01: So let's talk about financial fitness.
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  SPEAKER_01: First of all,
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  SPEAKER_01: we call it the Financial Fitness Academy,
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  and it's a program that we have run at Stanbeck Bank for now
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  nearly seven,
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  SPEAKER_01: if not eight years.
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  What's interesting,
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  and I may be running ahead a little bit here,
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  is we started it internally.
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  we were looking at ourselves as bankers and saying there seems
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  to be a problem.
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  SPEAKER_01: We work in the money market,
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  SPEAKER_01: we work in the money industry,
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  but sometimes it seems that we're not very good at managing our
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  own finances.
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  SPEAKER_01: So the program was mooted,
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  and it's a program that essentially takes the participant
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  through a journey of how
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  SPEAKER_01: they make their money,
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  SPEAKER_01: to how they spend that money,
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  SPEAKER_01: to how they save and invest that money,
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  SPEAKER_01: to how they give that money,
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  SPEAKER_01: and we call that share and legacy.
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  SPEAKER_01: And finally, to how you plan and protect the money.
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  So it's a five-fold approach to what we believe are some of the
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  key elements that
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  SPEAKER_01: go into being financially fit.
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  SPEAKER_01: And we call it the Wealth Framework.
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  SPEAKER_01: And it's out there.
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  SPEAKER_01: We've done it for thousands of individuals.
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  This year alone,
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  we are approaching 6,000 individuals who've been through the
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  program.
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  SPEAKER_01: It's free of charge.
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  SPEAKER_01: We offer it to anyone who is interested.
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  SPEAKER_01: And we have an app as well.
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  It's called the What Matters app that you can go to and get to
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  know more about the
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  SPEAKER_01: Financial Fitness Academy.
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  Can you break down those five fingers again and check out if
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  they are step-by-step?
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  SPEAKER_01: Absolutely.
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  SPEAKER_01: So let's start.
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  And if you are following me in your mind,
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  you can put this picture of a wheel.
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  SPEAKER_01: And at the top left or at one quadrant, you've got Create and Build.
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  SPEAKER_01: Now,
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  SPEAKER_01: when you're talking about,
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  and I know the subject of our discussion this evening is
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  building financial
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  SPEAKER_01: resilience,
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  SPEAKER_01: it's tempting to think to yourself,
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  SPEAKER_01: it's only about how much money I need and getting more and more money.
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  SPEAKER_01: And that is a number that would make you financially resilient.
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  SPEAKER_01: But in Create and Build,
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  SPEAKER_01: which is the first of the five-fold concepts within the wealth framework,
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  SPEAKER_01: we ask you to consider,
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  SPEAKER_01: are you clear about what exactly do you bring to the marketplace?
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  SPEAKER_01: What is your skill set?
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  And we are really big on continuous learnings as we are trying
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  to do this evening.
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  SPEAKER_01: We believe in this age that if you do want to be resilient,
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  SPEAKER_01: don't even talk about financial resilience,
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  SPEAKER_01: just simply resilient,
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  SPEAKER_01: you need to continuously upscale yourself.
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  SPEAKER_01: So in Create and Build,
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  SPEAKER_01: We ask you to be conscious of one.
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  SPEAKER_01: What's your hustle?
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  SPEAKER_01: How do you make your money?
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  SPEAKER_01: And then what are the skills that you could leverage to amplify that?
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  SPEAKER_01: So you may be able to start a side hustle.
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  SPEAKER_01: You may be able to simply scale up what you are doing,
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  SPEAKER_01: take it to the next level,
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  SPEAKER_01: and we start there with create and build.
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  SPEAKER_01: Then in living and joy,
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  SPEAKER_01: As it suggests,
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  we're saying life is about the living and people work hard so
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  that they can play
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  SPEAKER_01: hard.
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  SPEAKER_01: But as you do that,
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  SPEAKER_01: you need to do it to a plan that speaks to who you are,
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  SPEAKER_01: the things that you stand for.
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  And we introduce a budget in an overt way because people
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  understand budgeting theoretically.
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  SPEAKER_01: But here we challenge you and we ask you,
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  are you actually living your life in a way that can be said to
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  be living to a
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  SPEAKER_01: budget?
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  SPEAKER_01: And
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  And when post,
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  we challenge the participant to say,
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  does that budget speak to your priorities?
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  SPEAKER_01: We introduced a concept called the 50-30-20 rule.
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  SPEAKER_01: It's understood.
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  SPEAKER_01: It's common.
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  SPEAKER_01: But for us,
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  SPEAKER_01: it means that you need to be aspiring to live on 50% of your income,
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  SPEAKER_01: save 30% of your income,
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  SPEAKER_01: and invest 20% of your income.
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  SPEAKER_01: And that becomes even enjoy.
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  SPEAKER_01: We also talk about debt management.
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  SPEAKER_01: We talk about acquiring good assets.
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  SPEAKER_01: And it leads us on to save and invest,
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  SPEAKER_01: which is,
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  SPEAKER_01: courtesy of being in the investment space,
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  SPEAKER_01: a place that I feel very at home.
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  SPEAKER_01: And here we talk about the importance of saying,
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  SPEAKER_01: once you've understood how you're bringing in the money,
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  SPEAKER_01: you've understood about how you're prioritizing your spending,
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  SPEAKER_01: then you make that critical decision about where will I invest.
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  And in save and invest,
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  we talk about the double-fold importance of both saving
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  SPEAKER_01: and then investing, and one leads to another.
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  And we talk about the range of assets that are available and
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  courtesy of who we are
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  SPEAKER_01: as a bank,
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  SPEAKER_01: as a stockbroker,
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  SPEAKER_01: as an investment bank.
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  SPEAKER_01: There's a lot that we bring to the table,
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  SPEAKER_01: and we tell people to consider,
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  are you building this diversified portfolio that would help you
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  navigate the world
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  SPEAKER_01: of risk positively?
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  SPEAKER_01: In Share Your Legacy, we talk about a few somewhat taboo subjects.
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  SPEAKER_01: We talk about the things that people don't like to talk about.
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  SPEAKER_01: Death.
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  SPEAKER_01: and how you're thinking about the inevitability of it.
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  SPEAKER_01: Are you planning?
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  SPEAKER_01: Are you sharing your instructions?
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  SPEAKER_01: So what I'm doing,
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  SPEAKER_01: Eric,
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  in my long-winded answer is giving you a whistle-stop tour of
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  the Financial Fitness
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  SPEAKER_01: Academy in the Wealth Framework.
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  SPEAKER_01: It's normally a one and a half hour, longer than even we have now.
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  SPEAKER_01: But we complete it, Eric, by talking about Plan and Protect.
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  SPEAKER_01: And in Plan and Protect,
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  SPEAKER_01: As you would imagine,
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  SPEAKER_01: we talk about the importance of insurance amongst other things,
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  SPEAKER_01: insurance and financial planning.
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  And here what we are saying is you can do everything within
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  your power and your control.
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  SPEAKER_01: You can make the money.
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  SPEAKER_01: You can be disciplined about how you spend it.
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  SPEAKER_01: You can save and invest diligently.
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  SPEAKER_01: You can have a plan for how you plan to give it back.
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  SPEAKER_01: But there are certain things you cannot protect or guard against.
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  SPEAKER_01: And for those,
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  we say insurance is important and it all works together to
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  ensure or to enhance
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  SPEAKER_01: your financial resilience.
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  SPEAKER_00: You've taken us through the five steps in rocket speed.
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  SPEAKER_00: I wanted to break it down a bit.
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  My interest in Buffalo chair and legacy,
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  people don't talk about it a lot,
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  but we'll get there.
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  SPEAKER_00: Let's start with the create and build perspective.
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  In the create and build perspective,
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  what are you trying to encourage someone to do?
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  SPEAKER_00: Diversify incomes, compare expenses versus a budget and all.
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  SPEAKER_00: Can you break that down?
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  SPEAKER_00: Let's start with the create and build perspective.
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  SPEAKER_01: And even as I do,
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  SPEAKER_01: if you're on the call and you're asking yourself,
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  SPEAKER_01: okay,
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  SPEAKER_01: how can I be more a part of this discussion?
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  SPEAKER_01: Feel free,
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  SPEAKER_01: even as I speak,
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  SPEAKER_01: to go on to the App Store,
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  SPEAKER_01: to go to the Play Store,
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  SPEAKER_01: download the What Matters app,
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  and you will be able to follow a lot of what it is now we are
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  digging into.
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  SPEAKER_01: So let's talk about Create and Build.
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  SPEAKER_01: Like I said,
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  SPEAKER_01: in Create and Build,
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  SPEAKER_01: when we started this discussion about financial fitness,
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  SPEAKER_01: we said,
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  SPEAKER_01: What are some of the misconceptions?
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  SPEAKER_01: And I'll tell you,
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  SPEAKER_01: people expect that when they're talking about financial fitness,
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  SPEAKER_01: you will come in and you'll be straight into this product.
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  SPEAKER_01: But there's a mindset.
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  SPEAKER_01: There's a mindset to all of this.
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  SPEAKER_01: And create and build is about addressing that.
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  And we start with an interesting concept that's borrowed from a
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  professor at MIT,
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  SPEAKER_01: Dr.
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  SPEAKER_01: Peter Senge.
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  SPEAKER_01: And it's about the creative tension in our financial journey.
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  SPEAKER_01: And it's about starting with the end in mind.
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  SPEAKER_01: And we challenge,
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  SPEAKER_01: and even on this evening,
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  SPEAKER_01: I would challenge you because there are so many influences in life.
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  You're hearing from a person who's been in the market,
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  I begin to influence your thinking.
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  But are you clear yourself about what that bigger picture is,
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  where you're trying to get to?
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  SPEAKER_01: And we say visualize that outcome because the tensions,
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  SPEAKER_01: and he illustrates this with an interesting example,
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  SPEAKER_01: where you simply take your stronger hand,
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  SPEAKER_01: your dominant hand,
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  SPEAKER_01: your right or your left hand,
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  put it out in front of you and consider that dominant hand to
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  be your preferred
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  SPEAKER_01: financial future.
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  And Tasendia goes on to say I'll prove that tension will always
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  resolve itself to
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  SPEAKER_01: the most stable state,
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  SPEAKER_01: to that preferred financial future.
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  So we're saying we're no clear that my goal is to retire at a
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  particular age,
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  SPEAKER_01: maybe 50,
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  SPEAKER_01: maybe 40.
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  SPEAKER_01: I'd like to retire on a particular age.
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  SPEAKER_01: income, you can then begin to work backwards and create a pathway.
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  SPEAKER_01: So create and build is about addressing the mindset of an individual.
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  SPEAKER_01: So right now I'm addressing your mindset.
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  SPEAKER_01: When you think about financial resilience,
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  SPEAKER_01: when you think about financial fitness,
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  SPEAKER_01: start with a clear understanding,
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  SPEAKER_01: as clear as we can be,
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  SPEAKER_01: about where we are trying to get to.
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  SPEAKER_01: So, create and build is all about thinking about the fund.
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  SPEAKER_01: How do I currently create wealth?
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  And then we also ask you to consider,
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  think of the ways you could leverage your skill set.
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  SPEAKER_01: So,
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  SPEAKER_01: For instance, I am an investment advisor.
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  SPEAKER_01: I work for Stanbitt Bank.
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  SPEAKER_01: What else can I do to enhance my value in the marketplace?
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  How can I maybe take the route of Eric one day,
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  if it allows,
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  and reach a wider audience?
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  SPEAKER_01: And how can I then amplify the ability to earn?
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  SPEAKER_01: And then we also ask individuals, and they were looking ahead.
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  to plan and protect,
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  to consider what are the risks to your ability to make money.
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  SPEAKER_01: And people don't often do that when we are thinking about how we plan.
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  SPEAKER_01: We tend to focus just on the opportunity.
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  SPEAKER_01: We see we don't think about the risk.
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  SPEAKER_01: Here we're saying, what are the risks?
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  SPEAKER_01: And I know we made the opportunity to talk about AI.
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  SPEAKER_01: But in Create and Build, we are saying, are you remaining relevant?
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  SPEAKER_01: Are you upskilling yourself?
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  So Create and Build,
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  and if you go onto the app,
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  you will see it simply sets a foundation.
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  SPEAKER_01: It asks you,
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  SPEAKER_01: if I was to introduce a somewhat biblical metaphor,
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  SPEAKER_01: to consider what is in your hand.
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  SPEAKER_01: If I talk about my own background, I studied law.
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  SPEAKER_01: That's what I was certified to go out and do in the world.
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  SPEAKER_01: But courtesy of mentors and exposure that I got,
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  SPEAKER_01: I very quickly gained a foothold in financial services and investments in
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  SPEAKER_01: particular.
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  SPEAKER_01: So create and build is about considering what's available to you.
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  SPEAKER_01: How can you leverage it?
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  SPEAKER_01: What are the potential risks that it poses?
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  SPEAKER_01: And then we conclude create and build by an interesting illustration.
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  SPEAKER_01: It's been said in Kenya,
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  SPEAKER_01: I'm sure in many places around the world,
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  SPEAKER_01: that in Kenya,
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  SPEAKER_01: everybody has a side hustle.
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  SPEAKER_01: Everybody has a second gate that they are running.
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  But interestingly enough,
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  you tend to succeed at what you focus on,
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  what you devote yourself to.
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  SPEAKER_01: And we point out that whether you're an entrepreneur,
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  SPEAKER_01: whether you're a corporate employee,
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  SPEAKER_01: whether you're a recipient of inherited wealth,
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  SPEAKER_01: call it what you will,
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  SPEAKER_01: there is a function of time to the creation of wealth.
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  SPEAKER_01: And in Create and Build, we task you
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  to be prepared to look at your wealth journey as a marathon
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  rather than a sprint.
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  SPEAKER_01: So that would be one quadrant, Eric.
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  Would you like me to continue to break down the rest of you
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  want us to reflect a
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  SPEAKER_01: little bit of create and build?
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  Let's reflect a little bit because one of my really favorite
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  quotes from Charlie
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  Manga always says that every day you spend time in terms of
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  becoming better each
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  SPEAKER_00: day.
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  And in that perspective,
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  you're compounding that knowledge and experience long-term.
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  In reflecting on your own journey and some of the people that
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  you've worked with,
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  what are some of the key reflections or at least things change
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  you think about as
• 13:53
  SPEAKER_00: they create and build?
• 13:54
  SPEAKER_00: Absolutely.
• 13:55
  SPEAKER_01: That's a wonderful quote from a very respected individual.
• 13:59
  SPEAKER_01: when it comes to creating wealth.
• 14:01
  SPEAKER_01: Not as well known as many would hope, but really very unrespected.
• 14:05
  SPEAKER_01: And he's absolutely right.
• 14:07
  And I'm really hoping you get to see the visual depiction of
• 14:11
  those different wealth
• 14:11
  journeys because it's statistically driven that an entrepreneur
• 14:16
  will see an up and
• 14:17
  SPEAKER_01: down approach to the creation of wealth
• 14:19
  A corporate employee will probably associate himself with a
• 14:23
  rise that somewhat
• 14:24
  SPEAKER_01: links to inflation and tends to gradually increase over time.
• 14:28
  SPEAKER_01: If you've inherited wealth and you are under the pressure,
• 14:30
  you will tend to find you peak emotionally and your task
• 14:33
  becomes to maintain it.
• 14:34
  But what all those things have in common and what Charlie
• 14:37
  Munger is reminding us
• 14:38
  SPEAKER_01: about is you build an expertise by function of time.
• 14:44
  SPEAKER_01: It's been said that we are what we repeatedly do.
• 14:47
  SPEAKER_01: And if you inculcate good habits and build them,
• 14:50
  and something I would encourage anybody who's looking to
• 14:53
  accelerate their progress
• 14:54
  SPEAKER_01: towards financial resilience and stability,
• 14:57
  SPEAKER_01: is you don't need to repeat.
• 15:00
  SPEAKER_01: It is to repeat.
• 15:01
  And where perhaps I may not win as much support is saying the
• 15:05
  idea of a side hustle
• 15:06
  SPEAKER_01: has its setbacks.
• 15:08
  SPEAKER_01: Let me explain what I mean.
• 15:09
  SPEAKER_01: People will work a full working life in a particular industry.
• 15:14
  SPEAKER_01: Perhaps I work as a banker.
• 15:16
  SPEAKER_01: And then as I approach retirement, which I will soon be doing,
• 15:19
  SPEAKER_01: I begin to say to myself, I've always wanted to run a business.
• 15:24
  SPEAKER_01: And then I jump in with both feet,
• 15:26
  SPEAKER_01: which is inadvised,
• 15:28
  SPEAKER_01: into something that I have not yet built up experience in.
• 15:32
  SPEAKER_01: I don't have the cash, I don't have the networks.
• 15:34
  SPEAKER_01: I haven't built up,
• 15:35
  SPEAKER_01: if you like,
• 15:36
  the street credibility that justifies the risks that come with
• 15:40
  what is a new
• 15:40
  SPEAKER_01: venture.
• 15:41
  SPEAKER_01: So I would say on that point, Eric, one must be very careful.
• 15:44
  If you are truly called to a particular line and you are biding
• 15:48
  your time in
• 15:49
  SPEAKER_01: corporate or elsewhere,
• 15:50
  SPEAKER_01: but your big dream is to be a particular thing,
• 15:53
  then your side hustle should be about gaining that experience
• 15:57
  progressively.
• 15:58
  SPEAKER_01: It is a risky approach and risk has many aspects to it,
• 16:02
  SPEAKER_01: but it's a very risky thing to arrive at 30,
• 16:06
  SPEAKER_01: 40,
• 16:11
  50 and to simply do an about turn and head into something that
• 16:10
  you have not built
• 16:10
  SPEAKER_01: up an experience around.
• 16:12
  SPEAKER_01: So create and build is about credibility that you give yourself.
• 16:16
  SPEAKER_01: And for me,
• 16:16
  SPEAKER_01: I can certainly say,
• 16:18
  SPEAKER_01: having started out in the law profession,
• 16:20
  SPEAKER_01: having been exposed to people who I am immensely grateful to,
• 16:24
  I recall one particular individual who walked me through what
• 16:27
  the money markets
• 16:28
  SPEAKER_01: meant.
• 16:29
  SPEAKER_01: And this I'm talking about the interbank money market.
• 16:32
  SPEAKER_01: And I sat across his desk for about a year and a half.
• 16:34
  SPEAKER_01: And I really owe my whole career to that sort of mentorship.
• 16:37
  SPEAKER_01: But it took time.
• 16:38
  SPEAKER_01: It took time.
• 16:40
  What are some of the mistakes that people should look out for
• 16:42
  in the create and
• 16:43
  SPEAKER_01: build stage before you go to the next stage and it's going?
• 16:46
  SPEAKER_01: Mistakes, first of all, are not the end of the world.
• 16:49
  In fact,
• 16:50
  they say if you're not making any mistakes,
• 16:52
  then you're not taking enough risk.
• 16:54
  SPEAKER_01: But I would say hoping from one venture to another,
• 16:59
  becoming a serial entrepreneur in the name of gaining
• 17:02
  experience is probably
• 17:04
  SPEAKER_01: something you want to avoid.
• 17:06
  SPEAKER_01: It can be very expensive.
• 17:08
  SPEAKER_01: And people,
• 17:09
  SPEAKER_01: you have friends who have been moving from one venture to another without
• 17:14
  SPEAKER_01: experiencing the success they hoped for.
• 17:17
  And this is the tragedy sometimes without also appearing to
• 17:21
  learn from the failures.
• 17:23
  So even when Winston Churchill said that the definition of
• 17:25
  success is moving from
• 17:27
  SPEAKER_01: one failure to another without the loss of enthusiasm,
• 17:30
  SPEAKER_01: I don't think it is a license to start one thing,
• 17:33
  SPEAKER_01: not succeed,
• 17:34
  SPEAKER_01: fail,
• 17:35
  and then move and move because you will be eroding all sorts of
• 17:38
  capital to achieve
• 17:38
  SPEAKER_01: that.
• 17:39
  So I would say the mistake that one should be careful about
• 17:42
  repeating is moving
• 17:43
  SPEAKER_01: from venture to venture,
• 17:44
  SPEAKER_01: thinking to yourself that it is a venture that has a problem.
• 17:47
  Rather be more introspective,
• 17:49
  be humble,
• 17:50
  which is not something we often see of entrepreneurs.
• 17:52
  SPEAKER_01: Overconfidence is a real killer because when you're overconfident,
• 17:56
  SPEAKER_01: you will not see the obvious.
• 17:58
  SPEAKER_01: You will not see the red flags.
• 17:59
  SPEAKER_01: You will not take advice.
• 18:00
  SPEAKER_01: So it's a balance of confidence and ability.
• 18:03
  But you also need to be humble so that you can read the signs
• 18:06
  that are telling you
• 18:07
  SPEAKER_01: this is not the path to form.
• 18:09
  SPEAKER_00: Moving to the next stage,
• 18:10
  SPEAKER_00: you're going to speak about 50,
• 18:12
  SPEAKER_00: 30,
• 18:19
  20 rule that you live within 50% of what you are meaning 30% or
• 18:17
  20% for investment.
• 18:19
  SPEAKER_00: Break that down for us and given the state of the economy,
• 18:22
  SPEAKER_00: we live hand to mouth and one could flow that big also.
• 18:26
  SPEAKER_00: Let's start with the framework.
• 18:27
  SPEAKER_00: How can we live in joy?
• 18:29
  SPEAKER_00: Because that's the second stage now.
• 18:31
  SPEAKER_01: And the way we describe living and joy,
• 18:33
  SPEAKER_01: and yes,
• 18:33
  we are now moving to the second quadrant of the financial
• 18:36
  fitness wealth framework.
• 18:38
  SPEAKER_01: In living and joy,
• 18:39
  it's all about maintaining your chosen and you can underline
• 18:44
  chosen lifestyle so
• 18:46
  SPEAKER_01: that you can realize your plans,
• 18:48
  SPEAKER_01: your gains and aspirations.
• 18:49
  SPEAKER_01: And these will vary and we are never prescriptive.
• 18:52
  SPEAKER_01: Remember,
• 18:53
  most of the time we're doing these things in the context of
• 18:55
  adult education,
• 18:56
  which is its own challenge because financial safety and
• 18:59
  financial literacy,
• 19:00
  SPEAKER_01: unfortunately,
• 19:01
  SPEAKER_01: aren't always introduced to us at a younger stage.
• 19:04
  SPEAKER_01: But when we are grown,
• 19:07
  it really is about are you making deliberate choices or are
• 19:10
  these choices being
• 19:11
  SPEAKER_01: made for you by circumstance,
• 19:13
  SPEAKER_01: by peer pressure,
• 19:15
  SPEAKER_01: which can still exist well into your 30s,
• 19:16
  SPEAKER_01: 40s and 50s.
• 19:18
  SPEAKER_01: I am sensitive to the fact that for some people,
• 19:21
  SPEAKER_01: their lifestyle can appear to be circumstance driven,
• 19:25
  SPEAKER_01: not chosen.
• 19:26
  SPEAKER_01: They are hustling.
• 19:26
  They are trying to get to the place where they can be more
• 19:29
  deliberate about the
• 19:30
  SPEAKER_01: decisions they're making.
• 19:31
  SPEAKER_01: But the truth is,
• 19:32
  there is also a large constituency of people who are simply
• 19:36
  making choices that do
• 19:37
  SPEAKER_01: not speak to the innermost findings.
• 19:40
  So in living and joy,
• 19:41
  we introduce the budgets,
• 19:42
  or shall I say reintroduce the budgets.
• 19:45
  SPEAKER_01: And we do it with a wonderful quote that I'd like to share with you.
• 19:48
  SPEAKER_01: It's from Will Rogers, and you can't take credit for it.
• 19:51
  But Will Rogers wrote that too many people spend money they
• 19:53
  earn by things they
• 19:55
  SPEAKER_01: don't want to impress people they don't even like.
• 19:59
  I've been known to describe that in a language you might
• 20:02
  recognize as a version of witchcraft.
• 20:04
  That you would be working as hard as you are working and
• 20:08
  motivated by people who do
• 20:10
  SPEAKER_01: not know your story or where you're coming from.
• 20:13
  So with that quote,
• 20:14
  we then ask you to reset and re-examine your spending.
• 20:18
  SPEAKER_01: It may be as simple as actually drawing up that budget.
• 20:21
  You will notice the 50,
• 20:22
  30,
• 20:25
  20 which I'll come to is perhaps the last point.
• 20:25
  SPEAKER_01: Everything is about mindset.
• 20:27
  Everything is about saying to yourself,
• 20:28
  from today,
• 20:29
  I want to live on a budget and to a plan.
• 20:32
  SPEAKER_01: But let me say a little bit about 50-30-20 in its principles,
• 20:36
  because the actual 50-30-20 really should be tailor-made to
• 20:40
  your own situation.
• 20:42
  SPEAKER_01: But in principle,
• 20:43
  SPEAKER_01: we are saying you should live day-to-day,
• 20:46
  SPEAKER_01: month-to-month on about half of your income.
• 20:49
  SPEAKER_01: So 50%.
• 20:50
  Your goal should be to be able to save or to defy expenditure
• 20:56
  for at least 30% of your income.
• 20:58
  SPEAKER_01: So this is money you are creating by making sacrifices.
• 21:02
  SPEAKER_01: And Eric, I think we need to be clear.
• 21:04
  SPEAKER_01: This is a journey.
• 21:05
  SPEAKER_01: You will not be able,
• 21:07
  SPEAKER_01: you know,
• 21:07
  SPEAKER_01: like you to start out from the start,
• 21:09
  particularly if you're just starting out on a starting salary
• 21:12
  or maybe even not a
• 21:13
  SPEAKER_01: steady salary.
• 21:15
  SPEAKER_01: It would be really difficult to achieve this,
• 21:17
  but the goal is to get to the place where you are saving a
• 21:20
  substantial part of the
• 21:21
  SPEAKER_01: salary,
• 21:22
  SPEAKER_01: and we say that's 30%.
• 21:23
  And then when you do that,
• 21:24
  you open up this 20% that we call future financial goals.
• 21:29
  SPEAKER_01: This is the amount you invest.
• 21:31
  SPEAKER_01: So we're essentially aspiring to live on 50% of what you earn.
• 21:37
  You're looking to save 30% and build in this cushion as early
• 21:40
  as you can begin to do it.
• 21:42
  SPEAKER_01: And then you're beginning to invest for the future,
• 21:45
  SPEAKER_01: looking to invest 20% or more of your income.
• 21:47
  SPEAKER_01: We call it 50, 80, 20 for ease of recourse.
• 21:51
  It is simply a budget and it's a way to discipline yourself
• 21:55
  about where you're going.
• 21:56
  SPEAKER_01: My colleagues within the industry,
• 21:59
  SPEAKER_01: including within our sister company,
• 22:00
  SPEAKER_01: Liberty Life,
• 22:02
  SPEAKER_01: put it differently.
• 22:03
  SPEAKER_01: They talk about labeling your money.
• 22:05
  So here you're labeling your money so that you know where it
• 22:08
  went rather than
• 22:09
  SPEAKER_01: wonder what happened to it.
• 22:11
  SPEAKER_01: And it's a core part of living in joy.
• 22:14
  And it then becomes the starting point for discussion that we
• 22:18
  dig deep into one
• 22:19
  SPEAKER_01: about how you manage debt in that context.
• 22:22
  SPEAKER_01: Where does it fall?
• 22:23
  SPEAKER_01: What is too much debt?
• 22:25
  SPEAKER_01: What is too little debt?
• 22:27
  SPEAKER_01: We talk about the importance of assets in your wealth creation journey.
• 22:31
  SPEAKER_01: What are good assets?
• 22:32
  SPEAKER_01: What are bad assets?
• 22:34
  SPEAKER_01: And then we address the very sensitive issue,
• 22:37
  SPEAKER_01: or if you find yourself overwhelmed,
• 22:39
  SPEAKER_01: you're already in that hole that we hear about.
• 22:42
  SPEAKER_01: Yes, you should stop digging.
• 22:44
  SPEAKER_01: But as you stop digging,
• 22:45
  how do you get yourself out of the debt traps many of us have
• 22:50
  found ourselves into?
• 22:51
  SPEAKER_01: So it's that sort of discussion we would have in Live and Enjoy.
• 22:55
  SPEAKER_01: We would settle you on the idea of a budget,
• 22:57
  SPEAKER_01: challenge you to begin to live to one,
• 22:59
  SPEAKER_01: and then talk about debt management issues.
• 23:02
  talk about acquisition of assets,
• 23:04
  and then talk about how you get out of bed traps.
• 23:08
  There's a lot to unpack there,
• 23:09
  because then you're talking about assets,
• 23:11
  living debt-free.
• 23:12
  SPEAKER_00: There are a lot of tidbits there that you could share.
• 23:15
  SPEAKER_00: As a summary,
• 23:16
  SPEAKER_00: from your gleanings,
• 23:17
  SPEAKER_00: from your clients that you've worked with,
• 23:19
  what are some of the things that maybe people overlook in this
• 23:22
  stage of living in
• 23:23
  SPEAKER_00: joy?
• 23:24
  There's a couple of things,
• 23:25
  and it's a good question,
• 23:26
  and you are very right.
• 23:28
  SPEAKER_01: My hope,
• 23:29
  SPEAKER_01: Eric,
• 23:29
  SPEAKER_01: is on an evening like this,
• 23:31
  that we as Standard Bank are unlikely to be able to boil that
• 23:35
  metaphorical ocean.
• 23:36
  The idea is we want to just warm you up to the ideas of what
• 23:40
  you can do with a
• 23:40
  SPEAKER_01: financial partner like ourselves across the spectrum.
• 23:44
  But let's talk about this issue of assets,
• 23:46
  because assets is an interesting one.
• 23:48
  SPEAKER_01: First, assets and wealth seem to work hand in hand.
• 23:52
  SPEAKER_01: And the goal, I think for everybody, is you're looking to acquire assets.
• 23:55
  SPEAKER_01: One kind of another,
• 23:56
  SPEAKER_01: you call them lifestyle assets,
• 23:57
  SPEAKER_01: investment assets,
• 23:58
  SPEAKER_01: this or that,
• 23:59
  SPEAKER_01: but you're looking to acquire assets.
• 24:01
  SPEAKER_01: So we have a simple,
• 24:02
  SPEAKER_01: very simple,
• 24:02
  and a lot of what we do is really to address maybe things that
• 24:06
  we have done wrong
• 24:07
  SPEAKER_01: in the past,
• 24:07
  SPEAKER_01: which is complicated subject.
• 24:09
  So you will notice that our approach,
• 24:11
  hopefully you can agree with me,
• 24:13
  is really,
• 24:13
  very simple.
• 24:14
  And we have a simple two-step test that I would ask you to
• 24:17
  apply to what you are
• 24:18
  SPEAKER_01: calling an asset today.
• 24:20
  SPEAKER_01: One, does it generate income?
• 24:22
  SPEAKER_01: does it increase in money?
• 24:24
  SPEAKER_01: And based on that simple two-step test,
• 24:26
  you're able to determine whether you hold an asset as a good
• 24:30
  asset or a bad asset.
• 24:31
  SPEAKER_01: And a bad asset is simply the inverse.
• 24:34
  But if you have something you're calling an asset,
• 24:36
  and it could even be a plot of land,
• 24:38
  SPEAKER_01: and it is not generating an income,
• 24:40
  SPEAKER_01: and lo and behold,
• 24:42
  SPEAKER_01: it is decreasing in value,
• 24:44
  SPEAKER_01: which may seem like a misnomer.
• 24:47
  But it's important to remind ourselves that the idea that land
• 24:51
  we always appreciate
• 24:52
  SPEAKER_01: in value has been debunked,
• 24:55
  SPEAKER_01: And not only has it been debunked,
• 24:56
  it has been shown to be able to cause catastrophic effects as
• 25:00
  we saw in 2007 and
• 25:02
  SPEAKER_01: 2008 with the global financial crisis.
• 25:04
  So land is an asset like any other,
• 25:06
  and it should generate income ideally.
• 25:08
  And it does tend to appreciate in value,
• 25:10
  but not always,
• 25:10
  especially if it's not well selected.
• 25:12
  SPEAKER_01: So for us,
• 25:13
  SPEAKER_01: we ask you to say,
• 25:14
  SPEAKER_01: one,
• 25:15
  SPEAKER_01: even as you look to acquire assets,
• 25:17
  SPEAKER_01: whether you're looking to acquire them on debt or save towards them,
• 25:20
  SPEAKER_01: apply the test.
• 25:21
  SPEAKER_01: Ask yourself, is it generating income?
• 25:23
  SPEAKER_01: Is it increasing in money?
• 25:25
  SPEAKER_01: While I have the opportunity, I'll also talk about debt itself.
• 25:29
  Because debt,
• 25:30
  and I know you made the introduction that we are not discussing
• 25:33
  this in isolation.
• 25:34
  I think we know that debt has become a topical issue,
• 25:38
  a national issue if you like.
• 25:40
  SPEAKER_01: has capacity to accelerate your journey toward wealth creation.
• 25:44
  SPEAKER_01: But it absolutely has the capacity to slow you down to a halt.
• 25:48
  SPEAKER_01: Literally, it can drown you.
• 25:50
  SPEAKER_01: And what we are saying is that there are ways to lower debt.
• 25:54
  SPEAKER_01: It should be your goal to live debt free.
• 25:57
  SPEAKER_01: But debt in itself,
• 25:59
  and you'll not be surprised hearing from a banker or an
• 26:01
  investment manager,
• 26:03
  SPEAKER_01: that debt is not bad,
• 26:04
  SPEAKER_01: but you need to look at the ways in which you manage that debt,
• 26:07
  SPEAKER_01: that it is sufficient to amplify what you're trying to achieve,
• 26:11
  but it does not become a burden that you find yourself
• 26:14
  servicing debt rather than
• 26:16
  SPEAKER_01: growing assets.
• 26:17
  SPEAKER_01: So I've taken a little more time,
• 26:18
  SPEAKER_01: Merida,
• 26:19
  SPEAKER_01: broken down,
• 26:20
  that once we depart from this fairly conceptual understanding
• 26:24
  of having the 50,
• 26:25
  SPEAKER_01: 30,
• 26:27
  20 at work in your budget,
• 26:27
  SPEAKER_01: Then you begin to ask yourself, okay, with the 20, what will I do?
• 26:30
  SPEAKER_01: And I know we'll talk about saving and rest,
• 26:32
  but that you manage that aspect of the debt in it and you'll be
• 26:36
  really clear about
• 26:37
  the assets you're looking to acquire by applying that simple
• 26:40
  two-step test.
• 26:42
  SPEAKER_00: My key takeaway is that we need to be thoughtful about asset acquisition,
• 26:46
  SPEAKER_00: thinking a bit about the debt itself.
• 26:48
  SPEAKER_00: One warning,
• 26:48
  SPEAKER_00: at least for my interaction with a lot of friends,
• 26:51
  SPEAKER_00: is never to borrow,
• 26:52
  especially for expenses that are privileged in the way that you
• 26:55
  don't borrow for a
• 26:56
  SPEAKER_00: holiday.
• 26:57
  SPEAKER_00: So I think those are like small,
• 26:58
  gleaming CRM can help you to be strategic in terms of how you
• 27:01
  think about your
• 27:02
  SPEAKER_00: money.
• 27:02
  SPEAKER_00: Do you have something you'd recommend also?
• 27:05
  SPEAKER_01: Absolutely.
• 27:05
  Like I said,
• 27:06
  we try and challenge you to speak to your priorities as an
• 27:09
  individual.
• 27:10
  SPEAKER_01: I'll tell you what I saw, Danny.
• 27:12
  SPEAKER_01: When I'm speaking,
• 27:13
  SPEAKER_01: and like I said,
• 27:13
  SPEAKER_01: I speak to adults,
• 27:15
  SPEAKER_01: I speak to people who are well on their journey of wealth creation.
• 27:18
  I've always found that all these interventions to work best,
• 27:22
  they need to align to your values.
• 27:26
  SPEAKER_01: Now,
• 27:26
  SPEAKER_01: you know,
• 27:27
  SPEAKER_01: and you only live once,
• 27:28
  SPEAKER_01: you may think it's a dangerous philosophy,
• 27:31
  SPEAKER_01: but there are people who swear by it and they will work very hard,
• 27:34
  SPEAKER_01: play very hard.
• 27:36
  SPEAKER_01: They will take debt aggressively.
• 27:38
  They will deploy it adversely in ways that somebody else would
• 27:41
  consider very risky
• 27:43
  SPEAKER_01: or perhaps even reckless.
• 27:45
  SPEAKER_01: And there's very prominent people,
• 27:46
  some of them leading world powers today who are known to have
• 27:50
  built themselves with
• 27:52
  SPEAKER_01: debt.
• 27:53
  SPEAKER_01: But certainly I think the idea is to understand the nature of the beast.
• 27:57
  SPEAKER_01: Debt can certainly accelerate your progress towards your goal.
• 28:00
  SPEAKER_01: But if the debt is being taken to acquire what we consider a bad asset,
• 28:04
  potentially you have a holiday that you take a loan for and
• 28:07
  it's a short holiday
• 28:08
  SPEAKER_01: and you take a long-term loan and you're paying for a long-term,
• 28:11
  could be a dangerous thing but by the same token if you are
• 28:15
  taking debt because you
• 28:16
  realize the markets have woken up and indeed many would say
• 28:19
  they have in 2025 it's
• 28:22
  become the year of the share or the year of equities and you
• 28:25
  think i want to
• 28:26
  leverage my position in the market i see an opportunity it may
• 28:30
  be an aggressive
• 28:31
  approach but it could work so what we are saying is understand
• 28:34
  it whatever you do
• 28:36
  we talked about what marks you as financially fit rather than
• 28:39
  simply financially
• 28:40
  SPEAKER_01: nutrient,
• 28:41
  SPEAKER_01: is that you're able to maneuver,
• 28:43
  SPEAKER_01: you're able to adapt.
• 28:45
  In the past,
• 28:46
  say,
• 28:46
  36 months,
• 28:47
  three years,
• 28:48
  interest rates have risen significantly.
• 28:50
  SPEAKER_01: There will be seasons when debt is more affordable.
• 28:53
  SPEAKER_01: Those are times to borrow more.
• 28:54
  SPEAKER_01: When debt becomes more expensive, then you need to be able to adapt.
• 28:59
  And that adaptability is what leads to the resilience we are
• 29:02
  discussing this evening.
• 29:04
  SPEAKER_01: So I'm inclined to agree with you, Eric, perhaps not for a holiday.
• 29:08
  SPEAKER_01: But then again,
• 29:08
  SPEAKER_01: like I said,
• 29:09
  it's what matters to you and what you feel would be best for
• 29:12
  you as an individual
• 29:13
  SPEAKER_01: and your family.
• 29:15
  SPEAKER_00: Now we need to move on to the next stage, which is save and invest.
• 29:18
  SPEAKER_00: I think we talked about it as a party in 20K.
• 29:21
  So I think we can now get into that mix of how does someone
• 29:25
  save and invest.
• 29:25
  And I think,
• 29:26
  yeah,
• 29:26
  I want to ask you an honest question from Honest Kenyans who
• 29:29
  would ask,
• 29:31
  SPEAKER_00: Where do I get that money to invest if I can't meet my basic needs?
• 29:35
  SPEAKER_01: I hear you.
• 29:35
  SPEAKER_01: And it's a difficult question.
• 29:37
  SPEAKER_01: It's a difficult question.
• 29:38
  SPEAKER_01: And it's one I've been asked before.
• 29:39
  SPEAKER_01: And sometimes one wonders.
• 29:41
  SPEAKER_01: But let me start here.
• 29:43
  SPEAKER_01: First of all, we use the terms entertainably very often.
• 29:47
  SPEAKER_01: Save and invest, save and invest.
• 29:49
  SPEAKER_01: In the Financial Fitness Academy, we draw a distinction.
• 29:52
  SPEAKER_01: We draw a distinction.
• 29:53
  SPEAKER_01: Saving for us is a precursor to investment.
• 29:56
  SPEAKER_01: Remember 50, 30, 20?
• 29:57
  SPEAKER_01: Think of it as an evolution.
• 29:59
  SPEAKER_01: First of all, get a hold of how do I survive?
• 30:03
  SPEAKER_01: Because if you cannot survive,
• 30:05
  investing can seem like a rather insulting conversation that
• 30:08
  I'm agreeing with the
• 30:09
  SPEAKER_01: people who would speak to that.
• 30:11
  SPEAKER_01: So we start with 50, what it means in your context.
• 30:15
  SPEAKER_01: And the hope is that we are all evolving.
• 30:17
  SPEAKER_01: We're all on a journey.
• 30:18
  SPEAKER_01: that the opportunities are emerging and that we can evolve.
• 30:22
  SPEAKER_01: When you get to the point that the 30 begins to make sense,
• 30:25
  SPEAKER_01: and remember the 30 is now talking about what you can save,
• 30:29
  SPEAKER_01: the sacrifices,
• 30:30
  SPEAKER_01: the cost cutting,
• 30:31
  SPEAKER_01: the eating at home instead of eating out,
• 30:33
  SPEAKER_01: the carrying lunch instead of eating at the cafeteria,
• 30:36
  the taking the bus instead of acquiring an aspirational asset
• 30:40
  like your first car.
• 30:42
  SPEAKER_01: Extend how long you take on the bus, you probably will save quite a bit.
• 30:46
  SPEAKER_01: And when you now have those savings beginning to grow, don't stop there.
• 30:51
  And indeed,
• 30:51
  many people do,
• 30:52
  and they become the fittings of inflation,
• 30:55
  which affects all of us.
• 30:56
  SPEAKER_01: You can then meet that final step.
• 30:59
  SPEAKER_01: So I am trying to answer your question for the individual who says,
• 31:02
  SPEAKER_01: you lost me at investing because I didn't start at investing.
• 31:07
  SPEAKER_01: I started with your mindset.
• 31:09
  SPEAKER_01: I then took you to your budget.
• 31:10
  SPEAKER_01: And from your budget,
• 31:11
  SPEAKER_01: I'm now saying,
• 31:12
  SPEAKER_01: let's now have an honest discussion about how much we can save.
• 31:16
  Once you have built up some credibility with yourself and I can
• 31:20
  manage on this
• 31:21
  SPEAKER_01: limited budget,
• 31:22
  SPEAKER_01: I'm sacrificing,
• 31:23
  SPEAKER_01: I'm tightening my belt.
• 31:25
  SPEAKER_01: Now I can begin to invest.
• 31:28
  SPEAKER_01: And in investing,
• 31:29
  it is all about equipping yourself with the knowledge and then
• 31:33
  taking calculated
• 31:35
  SPEAKER_01: risk.
• 31:36
  SPEAKER_01: This to us is the message that we drive.
• 31:39
  We have a range of investments and we talk about the full
• 31:42
  spectrum of things that
• 31:43
  SPEAKER_01: we,
• 31:43
  SPEAKER_01: as Stan Big Bank,
• 31:44
  SPEAKER_01: can do for you.
• 31:45
  SPEAKER_01: From giving you a savings account,
• 31:47
  SPEAKER_01: to giving you a fixed deposit account,
• 31:50
  SPEAKER_01: to then introducing you to the equity markets,
• 31:52
  SPEAKER_01: to SBG Securities,
• 31:54
  to then introducing you to the fixed income bond market that we
• 31:57
  can also do,
• 31:59
  SPEAKER_01: and it's a market that has grown exponentially in the retail space,
• 32:02
  SPEAKER_01: to taking you offshore,
• 32:04
  to introducing you to our final management team and our asset
• 32:08
  management products.
• 32:09
  SPEAKER_01: The idea is with all these things that you are going on a journey,
• 32:14
  SPEAKER_01: I'll give you an interesting reflection.
• 32:16
  Sometimes people will hear through the grapevine that to invest
• 32:20
  in your bonds,
• 32:21
  SPEAKER_01: in our currency,
• 32:22
  SPEAKER_01: you need $200,000.
• 32:24
  And they will use that as a reason to say,
• 32:26
  investing is not for me,
• 32:28
  investing is for the rich.
• 32:30
  Yes,
• 32:30
  but you can gain exposure to the very same asset,
• 32:34
  Kenyan Eurobond,
• 32:35
  by investing in a U.S.
• 32:36
  dollar fixed income fund from as little,
• 32:39
  and I use the word sensitively,
• 32:41
  100 pounds.
• 32:43
  So the point we're making is that if you are,
• 32:46
  and the important analogy,
• 32:47
  physical fitness,
• 32:49
  SPEAKER_01: Nobody starts out as Mr. or Miss King.
• 32:52
  SPEAKER_01: You start out with goals and hopes for your personal fitness.
• 32:56
  SPEAKER_01: You do them for a week.
• 32:57
  SPEAKER_01: You give up.
• 32:58
  SPEAKER_01: You come back.
• 32:59
  SPEAKER_01: You do it for a month.
• 33:00
  SPEAKER_01: And if you're fortunate, it becomes part of your nice day.
• 33:03
  The very same thing can be said about the discussion we have in
• 33:06
  this evening.
• 33:07
  even for the individual who finds himself in a place not only
• 33:10
  without the resources
• 33:11
  SPEAKER_01: to invest,
• 33:12
  SPEAKER_01: but in debt.
• 33:14
  SPEAKER_01: By all means,
• 33:15
  SPEAKER_01: allow this conversation to leave you at living in joy,
• 33:19
  SPEAKER_01: work on addressing your debt situation,
• 33:21
  SPEAKER_01: work if you want to go back to create and build,
• 33:24
  SPEAKER_01: On a different plan,
• 33:26
  very often people will make career changes because they need to
• 33:29
  earn more money.
• 33:30
  SPEAKER_01: There is absolutely no shame in that.
• 33:32
  SPEAKER_01: So I know it's not as simple,
• 33:34
  SPEAKER_01: particularly if you find yourself in a place of lack,
• 33:36
  SPEAKER_01: but the message is one of hope.
• 33:38
  And we believe we can walk this journey and take people from
• 33:41
  one place to another.
• 33:43
  SPEAKER_00: One reflection for me here is that right now,
• 33:45
  SPEAKER_00: you may not be able to meet that saving invest pitch,
• 33:49
  SPEAKER_00: but it's a goal that you should actively work toward.
• 33:52
  SPEAKER_00: And I think that's a mindset that you cannot all work towards.
• 33:56
  SPEAKER_00: You may not be there yet,
• 33:57
  SPEAKER_00: but hey,
• 33:57
  can we share some 10 feelings from a little bit of what we are
• 34:01
  spending to be able
• 34:02
  SPEAKER_00: to push it a bit into the savings bracket?
• 34:05
  I think that would be something that I would personally,
• 34:07
  consciously tell people.
• 34:09
  SPEAKER_00: Is that something you can agree with me on?
• 34:12
  SPEAKER_01: I certainly do, and you're very right, Eric.
• 34:15
  SPEAKER_01: I don't know where we get this concept,
• 34:17
  SPEAKER_01: and I don't know how it evolved,
• 34:19
  SPEAKER_01: but it appears to be a unique challenge of,
• 34:22
  SPEAKER_01: shall I say,
• 34:23
  SPEAKER_01: the current generation and the one just preceding.
• 34:25
  SPEAKER_01: This idea that I need a lot of money to start investing,
• 34:30
  SPEAKER_01: and there is certainly an element of a vicious cycle about it.
• 34:33
  SPEAKER_01: If you convince yourself that it takes a lot of money to invest,
• 34:37
  SPEAKER_01: So I will not invest.
• 34:39
  You are unlikely to be able to create the resources that will
• 34:41
  then amplify your wealth journey.
• 34:43
  SPEAKER_01: And you become stuck in this cycle of inaction or procrastination,
• 34:48
  SPEAKER_01: which is a real thief of money.
• 34:51
  I have seen and I can share with you examples and I have one
• 34:54
  particular one that
• 34:54
  SPEAKER_01: has never left me.
• 34:56
  SPEAKER_01: It was from a gentleman who I never got to meet,
• 34:58
  but who would send through back in the days in the envelopes
• 35:02
  that had the red and
• 35:03
  SPEAKER_01: the blue on edges.
• 35:05
  SPEAKER_01: A very modest check,
• 35:06
  but he did so faithfully once a month for as long as I can
• 35:11
  remember when I started
• 35:11
  SPEAKER_01: about 25 years ago.
• 35:14
  SPEAKER_01: The amounts were never astronomical.
• 35:16
  SPEAKER_01: They were modest.
• 35:17
  We are talking in the hundreds of shillings,
• 35:19
  not the thousands of shillings.
• 35:21
  SPEAKER_01: But he would send this amount.
• 35:23
  And one of the days,
• 35:24
  because then we were not in portfolio management,
• 35:27
  we were stockbrokers.
• 35:28
  SPEAKER_01: We bought and sold based on the instruction.
• 35:30
  But when I finally did get a glimpse of the portfolio,
• 35:35
  this modest individual was building.
• 35:37
  I was dating about because I can assure you the amount then was
• 35:42
  more than people
• 35:43
  SPEAKER_01: who have much more by way of disposable income.
• 35:46
  So I cannot agree with you more that if there's one message one
• 35:50
  should take away
• 35:51
  amounts of this discussion when it comes to civil invest is
• 35:54
  that the power is in
• 35:55
  SPEAKER_01: starting and starting now.
• 35:58
  SPEAKER_01: And then keep at it.
• 36:00
  SPEAKER_01: Consistency and discipline have no replacement.
• 36:04
  SPEAKER_01: That is how you will maximize the benefits of the market.
• 36:06
  SPEAKER_01: We call it timing the market vis-a-vis or timing the market.
• 36:11
  Too many of us like the idea of catching things at the bottom,
• 36:15
  selling at the top.
• 36:16
  SPEAKER_01: It sounds nice.
• 36:17
  SPEAKER_01: a script for a movie, but not real life.
• 36:20
  SPEAKER_01: In reality,
• 36:21
  SPEAKER_01: you find a stock moving,
• 36:23
  SPEAKER_01: you jump in,
• 36:24
  SPEAKER_01: you stay with it,
• 36:24
  SPEAKER_01: it goes down,
• 36:26
  SPEAKER_01: you keep faith that it makes sense,
• 36:28
  SPEAKER_01: and you create wealth over time.
• 36:29
  SPEAKER_01: So Eric, thank you for highlighting that point.
• 36:31
  SPEAKER_01: I hope it encourages anybody.
• 36:33
  SPEAKER_01: And we must applaud, I think, a great progress in Kenya.
• 36:37
  SPEAKER_01: A lot of the institutions,
• 36:38
  SPEAKER_01: the Capital Market Authority,
• 36:39
  SPEAKER_01: the Aromi Securities Exchange,
• 36:41
  SPEAKER_01: players like ourselves,
• 36:42
  SPEAKER_01: have lowered the thresholds for participation.
• 36:45
  There was a time it seemed like people were still trying to
• 36:47
  keep out beginner
• 36:49
  SPEAKER_01: investors,
• 36:50
  SPEAKER_01: but today you will see thresholds have been lowered significantly,
• 36:53
  SPEAKER_01: particularly when you talk about money-mounted funds,
• 36:56
  SPEAKER_01: fixed income funds,
• 36:57
  which are designed really to allow you to begin to participate
• 37:01
  in the investment
• 37:02
  SPEAKER_01: journey.
• 37:03
  SPEAKER_00: That's not investing at the NSD itself is very easy.
• 37:06
  SPEAKER_00: I think sometimes you're just being afraid.
• 37:08
  SPEAKER_00: It's okay.
• 37:09
  SPEAKER_00: Take your new shillings,
• 37:10
  SPEAKER_00: put them up in the market,
• 37:11
  SPEAKER_00: see them go up and down,
• 37:12
  SPEAKER_00: and it's part of the journey.
• 37:13
  SPEAKER_00: I think that's how you get started.
• 37:15
  Please,
• 37:16
  Rick,
• 37:16
  and maybe,
• 37:16
  Eric,
• 37:17
  before we move,
• 37:18
  allow me to address that fear.
• 37:20
  SPEAKER_01: I cut my teeth at the stock market,
• 37:22
  SPEAKER_01: and it actually has been very sad to see how Kenyans,
• 37:26
  SPEAKER_01: shall I say,
• 37:27
  the majority of the public have lost faith with the stock
• 37:30
  market over the years.
• 37:32
  regularly you will see that the participation at our own very
• 37:35
  stock market,
• 37:36
  SPEAKER_01: trading our companies that we patronize,
• 37:39
  SPEAKER_01: that we give our money to,
• 37:40
  SPEAKER_01: is mostly foreign.
• 37:42
  SPEAKER_01: So it's people in other markets,
• 37:44
  in other parts of the world who see value in the things that we
• 37:47
  appear not to.
• 37:49
  And a lot of it is driven by negative experiences that have now
• 37:52
  become a fear and a
• 37:53
  SPEAKER_01: deep risk aversion.
• 37:55
  SPEAKER_01: If I can just illustrate, like I said earlier, if you invested
• 37:58
  SPEAKER_01: In Safaricom,
• 38:00
  SPEAKER_01: at the beginning of 2025,
• 38:00
  SPEAKER_01: as of a week or so ago,
• 38:03
  SPEAKER_01: you are looking at returns in excess of 50%.
• 38:06
  SPEAKER_01: Safaricom is the largest listed company in Kenya.
• 38:11
  SPEAKER_01: It is the most profitable company in Kenya.
• 38:14
  SPEAKER_01: I dare say it is a no-brainer to put your money there.
• 38:17
  But sometimes the fear of having had your fingers burnt in the
• 38:21
  past can hold you back.
• 38:22
  SPEAKER_01: We're very proud as an organization of the research we put out.
• 38:26
  SPEAKER_01: And we talked about the investment in knowledge.
• 38:28
  I think the counter to fear that appears to sometimes keep
• 38:32
  investors from taking
• 38:33
  SPEAKER_01: action is knowledge and information.
• 38:36
  And we would be very happy to share with your listeners on
• 38:38
  different forums,
• 38:39
  SPEAKER_01: the research reports we have,
• 38:41
  the insights we have that are actionable and can actually help
• 38:44
  you overcome your
• 38:45
  SPEAKER_01: sphere and act with knowledge and insight.
• 38:48
  SPEAKER_01: I thought I'd just make that point.
• 38:50
  SPEAKER_00: We just shared the step three or five,
• 38:52
  SPEAKER_00: the first one that we can build,
• 38:53
  SPEAKER_00: where we talk about how you can expand your skillset,
• 38:56
  SPEAKER_00: be able to expand your knowledge base to be able to earn a bit more.
• 38:59
  SPEAKER_00: We talked about living in joy, where we want you to be debt-free.
• 39:03
  At the same time,
• 39:03
  we think about asset acquisitions,
• 39:05
  even though they're modest sometimes.
• 39:07
  SPEAKER_00: Even invest,
• 39:08
  SPEAKER_00: where we're saying you don't have to have a lot of money,
• 39:10
  SPEAKER_00: but you can get that income on.
• 39:12
  SPEAKER_00: Now,
• 39:13
  SPEAKER_00: I want you to deal with one bit that a lot of people don't talk about,
• 39:16
  but I think my being in Canada a bit for a while has made me
• 39:19
  quite conscious of the
• 39:21
  SPEAKER_00: need to do this.
• 39:22
  SPEAKER_00: And actually,
• 39:23
  SPEAKER_00: this week,
• 39:23
  SPEAKER_00: I've been listening to a podcast that is titled,
• 39:25
  SPEAKER_00: What a Dying Can Teach Those Who Are Living.
• 39:29
  Legacy is all about how do you leave something behind for the
• 39:33
  next generation?
• 39:34
  SPEAKER_00: How do you leave something for yourself that is in old age?
• 39:37
  SPEAKER_00: So Kimori, how can you help us think about this phase?
• 39:40
  SPEAKER_01: Thank you for guiding us so well through it.
• 39:42
  SPEAKER_01: We are at step four, five, which is about sharing legacy.
• 39:45
  Klami,
• 39:45
  just to make a slight reference,
• 39:48
  you talked about under live and enjoy living dead free.
• 39:51
  SPEAKER_01: Now, for need of clarity, I'm not saying you should never take a loan.
• 39:56
  SPEAKER_01: That might be a career and anything move on my part.
• 39:58
  We're saying manage your debt so that you get to the point
• 40:01
  where you can be
• 40:02
  SPEAKER_01: debt-free on a light note.
• 40:04
  SPEAKER_00: It's very important to clarify that.
• 40:06
  Debt-free in the sense of my mind was more fixated on the loans
• 40:11
  that allow Kenyans
• 40:11
  SPEAKER_00: to get themselves in a very high interest rate and very punitive measure.
• 40:15
  SPEAKER_00: So I think that aspect of debt,
• 40:16
  SPEAKER_00: that can actually be detrimental to a long-term financial survival.
• 40:20
  But debt well taken out when you take it to build assets to be
• 40:24
  instead generating income.
• 40:26
  SPEAKER_00: I think that's good debt.
• 40:27
  SPEAKER_01: Absolutely.
• 40:28
  And we do certainly encourage that you deal with a reputable
• 40:31
  financial institution
• 40:32
  SPEAKER_01: when you're dealing in debt.
• 40:33
  SPEAKER_01: But I think the point is well made and we are aligned.
• 40:36
  SPEAKER_01: We are talking about the legacy now.
• 40:39
  SPEAKER_01: And we call it share and legacy.
• 40:41
  SPEAKER_01: The idea is how do you make a difference?
• 40:43
  SPEAKER_01: It could be for your family.
• 40:44
  SPEAKER_01: It could be for your community.
• 40:46
  SPEAKER_01: It could be about impacting future generations.
• 40:48
  And if you want to think about it holistically and understand
• 40:52
  what are these guys
• 40:53
  SPEAKER_01: that stand with all about.
• 40:54
  SPEAKER_01: For us,
• 40:55
  SPEAKER_01: the money discussion is both about value,
• 40:58
  SPEAKER_01: when you think about create and build,
• 41:00
  SPEAKER_01: save and invest,
• 41:01
  SPEAKER_01: but it's also about purpose.
• 41:03
  SPEAKER_01: And purpose for us is captured by living and joy.
• 41:06
  SPEAKER_01: What are you putting your money towards?
• 41:08
  SPEAKER_01: And then shared and legacy.
• 41:09
  SPEAKER_01: What do you stand for?
• 41:12
  SPEAKER_01: Now, I want to make a distinction.
• 41:14
  SPEAKER_01: Sometimes we confuse wealth transfer and legacy.
• 41:18
  SPEAKER_01: Wealth transfer is about what can I give you?
• 41:22
  SPEAKER_01: Is it land?
• 41:22
  SPEAKER_01: Is it fashion in the bank?
• 41:24
  SPEAKER_01: Those things will happen.
• 41:26
  SPEAKER_01: Now, I dare say wealth transfer will happen whether you like it or not.
• 41:31
  it'll go to the government it'll go to the people you designate
• 41:34
  if you write a will
• 41:35
  and that way is not contested but legacy is not as assured and
• 41:40
  for us legacy is
• 41:42
  SPEAKER_01: about what did you stand for what were your values
• 41:46
  SPEAKER_01: What would you want this wealth that you have created to achieve?
• 41:50
  SPEAKER_01: Is it the education of people who are less able?
• 41:53
  SPEAKER_01: Is it to establish causes that resonate with who you are?
• 41:57
  SPEAKER_01: These are quotes we have,
• 41:58
  and I think it's very important when we're having the wealth
• 42:00
  discussion to balance
• 42:02
  SPEAKER_01: it.
• 42:02
  SPEAKER_01: But it's attributed to a brilliant mind.
• 42:05
  SPEAKER_01: Albert Einstein.
• 42:06
  SPEAKER_01: And it says it's every man,
• 42:07
  SPEAKER_01: and we have either the woman's obligation,
• 42:10
  SPEAKER_01: the man in the general sense,
• 42:11
  to put back into the world at least the equivalent of what they
• 42:15
  take out of it.
• 42:16
  SPEAKER_01: So for us, legacy is all about giving back.
• 42:20
  SPEAKER_01: And we believe it balances out this...
• 42:22
  acquisition mindset of wealth and it gives purpose to him and
• 42:27
  when we talk about it
• 42:28
  because you've talked already about people now say okay there
• 42:31
  you go again mr
• 42:32
  stanley you've lost me because they talk about giving they only
• 42:35
  have enough to hold
• 42:36
  SPEAKER_01: on to myself
• 42:38
  SPEAKER_01: We're not just talking about money.
• 42:39
  SPEAKER_01: We are asking, what are the different things you do?
• 42:42
  SPEAKER_01: It could be your gifts.
• 42:43
  SPEAKER_01: It could be a talent you have.
• 42:46
  SPEAKER_01: It could be to help people learn how to read.
• 42:48
  SPEAKER_01: If you yourself learned how to read well, it could be volunteering.
• 42:52
  SPEAKER_01: It could be helping the elderly.
• 42:55
  It could be creating order in a political process,
• 42:57
  being civically minded.
• 43:00
  SPEAKER_01: The idea of giving back is very broad.
• 43:02
  Don't limit it to,
• 43:03
  do I have enough money to put it in a will as going to
• 43:07
  somebody.
• 43:08
  SPEAKER_01: A will is part of it.
• 43:10
  SPEAKER_01: A will is part of it.
• 43:11
  And for us,
• 43:12
  legacy is also about saying that you can do it as an
• 43:15
  individual.
• 43:16
  SPEAKER_01: Sometimes we seek the confidence of doing things as a collective.
• 43:21
  Mother Teresa is quoted as saying that she alone couldn't
• 43:23
  change the world,
• 43:25
  SPEAKER_01: but she could cast a stone across the waters to create many reports.
• 43:29
  SPEAKER_01: So financial sickness graduates are challenged to create those reforms.
• 43:34
  You spent an evening with Eric and I.
• 43:37
  You've heard about the things that Standard Bank can do.
• 43:41
  Some of them may make sense given where you are in your
• 43:43
  financial journey.
• 43:44
  SPEAKER_01: Some may not yet be relevant.
• 43:46
  SPEAKER_01: But what does make sense?
• 43:47
  SPEAKER_01: Can you take, share with your family, socialize?
• 43:50
  SPEAKER_01: I'm having this conversation with my 13-year-old son in the room.
• 43:54
  SPEAKER_01: Because I want to create a legacy of financial fitness in him.
• 43:58
  I want him to hear the message about financial fitness before
• 44:01
  he earns his first salary.
• 44:03
  SPEAKER_01: So sharing a legacy is saying,
• 44:05
  SPEAKER_01: what do you have and how can you deploy it for the good of society,
• 44:10
  SPEAKER_01: the good of your family,
• 44:11
  SPEAKER_01: the good of the world at large?
• 44:13
  SPEAKER_00: Now, to the final step, plan and protect.
• 44:16
  SPEAKER_00: What do we need to learn there?
• 44:18
  If you recall at the beginning,
• 44:19
  I said,
• 44:20
  this is all about our best efforts.
• 44:22
  SPEAKER_01: This is Standard Bank, part of the Standard Bank Group, saying,
• 44:27
  Jipang,
• 44:27
  organize your affairs,
• 44:29
  leverage your skill set and create and build.
• 44:32
  SPEAKER_01: Work with that budget.
• 44:32
  SPEAKER_01: And I'm telling you, believe me, a budget will save your financial life.
• 44:38
  The discipline associated with it will allow you to become
• 44:41
  financially resilient.
• 44:43
  SPEAKER_01: We've said save and invest is not a luxury.
• 44:47
  SPEAKER_01: It's not an easy place to get to.
• 44:49
  SPEAKER_01: It is a journey.
• 44:50
  Work towards it,
• 44:51
  start your saving,
• 44:53
  move into investing,
• 44:54
  and then accelerate your progress.
• 44:56
  SPEAKER_01: Sharing legacy, we said, give back as you create.
• 45:00
  SPEAKER_01: But then there are these things that come.
• 45:02
  SPEAKER_01: Sickness, disease.
• 45:04
  And too often,
• 45:05
  particularly in African society,
• 45:07
  when these things happen,
• 45:08
  they set people back.
• 45:11
  You find yourself motivated by love and care for those around
• 45:15
  you to defeat those
• 45:17
  SPEAKER_01: savings we've spoken about,
• 45:18
  SPEAKER_01: to liquidate those investments prematurely.
• 45:21
  SPEAKER_01: And we are saying there are solutions for that.
• 45:25
  SPEAKER_01: There are solutions like insurance.
• 45:28
  It is designed to help you deal with that financial burden that
• 45:32
  you cannot quite predict.
• 45:34
  SPEAKER_01: But very often we see insurance as an expense that can be done away with.
• 45:39
  SPEAKER_01: but we do so at risk to our financial resilience and stability.
• 45:44
  SPEAKER_01: The statistics are rife about the rising cost of care,
• 45:47
  SPEAKER_01: either on an emergency basis,
• 45:49
  SPEAKER_01: but even more when you think about post-retirement medical care.
• 45:54
  SPEAKER_01: And this is a gap that we've identified,
• 45:56
  SPEAKER_01: that many people are working,
• 45:58
  SPEAKER_01: are creating,
• 45:59
  SPEAKER_01: are investing,
• 46:00
  but somehow I'm a blind spot for what happens when the company
• 46:04
  I work with or for
• 46:06
  SPEAKER_01: is no longer supporting my medical care.
• 46:09
  SPEAKER_01: Will my retirement be all about taking care of my medical bills?
• 46:14
  SPEAKER_01: Now, we wish each other good health.
• 46:16
  But we know the reality is that people costs tend to increase
• 46:19
  in retirement,
• 46:20
  not to decrease.
• 46:22
  SPEAKER_01: So in Plan and Protect, we sell you that one.
• 46:26
  SPEAKER_01: articulate your plans.
• 46:27
  SPEAKER_01: Write that will.
• 46:29
  SPEAKER_01: Not when you are full of assets, but when you begin to acquire them.
• 46:33
  SPEAKER_01: When there are things to your name, write a will.
• 46:36
  A will is a simple legal document explaining how things should
• 46:39
  be dealt with.
• 46:40
  SPEAKER_01: And then look at the areas of your life where you are exposed to risk.
• 46:44
  SPEAKER_01: It could be in assets that you own.
• 46:46
  SPEAKER_01: It could be in your own health.
• 46:48
  It could be maybe you travel regularly and you want to ensure
• 46:50
  that you have
• 46:51
  SPEAKER_01: adequate travel insurance.
• 46:53
  SPEAKER_01: It could be the education of your children,
• 46:55
  which is something that's close to many people's hearts and you
• 46:57
  have a concern
• 46:58
  SPEAKER_01: that,
• 46:59
  SPEAKER_01: yes,
• 46:59
  SPEAKER_01: I have a plan and I'm working towards it,
• 47:01
  SPEAKER_01: but what happens if I am not then?
• 47:03
  SPEAKER_01: Should that education deem not be achieved?
• 47:06
  SPEAKER_01: And for these things, we say, take insurance.
• 47:09
  SPEAKER_01: And we walk participants to the fundamentals of insurance.
• 47:13
  SPEAKER_01: illustrating that yes, there are many different types.
• 47:16
  SPEAKER_01: Not all would be required,
• 47:18
  but certainly it does not appear wise to say I do not need any
• 47:21
  insurance at all.
• 47:23
  SPEAKER_01: We distinguish between short-term insurance,
• 47:26
  SPEAKER_01: a very popular one for many Kenyans,
• 47:27
  SPEAKER_01: but also introduced long-term and life insurance.
• 47:30
  SPEAKER_01: Why are you so passionate about protecting your car?
• 47:34
  or obliged to do so legally,
• 47:36
  but not as interested in protecting your health.
• 47:39
  SPEAKER_01: I will illustrate something we have pioneered at the time,
• 47:44
  an insurance product that deals with last respects for you and
• 47:49
  your family.
• 47:50
  SPEAKER_01: Because many people can relate with the idea of death coming,
• 47:53
  SPEAKER_01: not only with its tragedy,
• 47:55
  SPEAKER_01: but also with the financial burden associated.
• 47:57
  SPEAKER_01: And we said you can plan for it.
• 48:00
  SPEAKER_01: And you can do so in a manageable way through monthly payments.
• 48:04
  SPEAKER_01: And we've seen our Flexi Protect policy,
• 48:07
  SPEAKER_01: which is a last respect cover,
• 48:09
  SPEAKER_01: gain traction with people.
• 48:11
  SPEAKER_01: Because people aren't opposed to protecting themselves,
• 48:14
  but they want to do so in a way that doesn't then limit them
• 48:17
  from doing other
• 48:18
  SPEAKER_01: things.
• 48:19
  So once we are done with that,
• 48:20
  Eric,
• 48:21
  we have then navigated the full wealth framework.
• 48:24
  SPEAKER_01: We do so with insights and case studies,
• 48:28
  SPEAKER_01: and perhaps if the opportunity does provide itself one day,
• 48:31
  your listeners can participate in a fully-fledged Financial
• 48:34
  Fitness Academy run by
• 48:36
  SPEAKER_01: my colleague Elsie Minor and go on this journey for themselves.
• 48:40
  SPEAKER_01: Thank you so much.
• 48:41
  SPEAKER_00: You've taken us through a really good journey with a lot to reflect on.
• 48:45
  SPEAKER_00: There's a question here from the audience.
• 48:48
  SPEAKER_00: Someone said it way before you even started.
• 48:50
  What specific investment or savings tools do you recommend for
• 48:53
  Kenyans looking to
• 48:54
  SPEAKER_00: protect their wealth while achieving long-term financial growth?
• 48:58
  SPEAKER_00: And we are basically asking,
• 48:59
  are there two that you can recommend to talk a little bit about
• 49:02
  some of the
• 49:03
  SPEAKER_00: offerings that you have at Stanby Kenya in this regard?
• 49:06
  SPEAKER_01: I'm happy to do that.
• 49:07
  SPEAKER_01: And once we're done, you wouldn't be surprised.
• 49:10
  SPEAKER_01: We often tell you that once you've had this whole discussion,
• 49:13
  SPEAKER_01: you will do yourself a favor by actually now engaging us and saying,
• 49:17
  SPEAKER_01: okay,
• 49:18
  SPEAKER_01: that's the field,
• 49:19
  SPEAKER_01: but now what can we do?
• 49:20
  SPEAKER_01: We have a full range of investment and banking solutions available.
• 49:25
  SPEAKER_01: The principle,
• 49:25
  SPEAKER_01: and we perhaps didn't dwell on it as much as perhaps we should,
• 49:28
  SPEAKER_01: but when we were talking about risk,
• 49:30
  SPEAKER_01: if I understand where the listener is coming from.
• 49:33
  SPEAKER_01: This is the thing to understand about risk.
• 49:34
  Risk is not guarded against by finding that perfect investment
• 49:39
  that is risk-proof.
• 49:41
  SPEAKER_01: People thought it was gold once.
• 49:43
  SPEAKER_01: It's been proven for all.
• 49:44
  SPEAKER_01: You might think it becomes this or that.
• 49:46
  How you guard against risk is to build a balanced and a
• 49:50
  diversified portfolio.
• 49:52
  And balanced does not mean 50-50,
• 49:54
  but it does mean that you spread your assets.
• 49:58
  SPEAKER_01: Now,
• 49:58
  SPEAKER_01: there's a well-known spectrum of investment assets,
• 50:01
  SPEAKER_01: and it starts with cash that has its place,
• 50:03
  SPEAKER_01: tends to earn a lower return.
• 50:05
  SPEAKER_01: Money markets have gained a lot of currency of late.
• 50:07
  SPEAKER_01: You can invest in money market funds in U.S.
• 50:11
  SPEAKER_01: dollars or king of shilling.
• 50:13
  SPEAKER_01: I would draw your attention to money markets in U.S.
• 50:17
  SPEAKER_01: dollars,
• 50:18
  because many a lot of people are looking at not just a return
• 50:21
  you get on a hard
• 50:22
  SPEAKER_01: currency that tends to be somewhat insulated against inflation,
• 50:26
  but also the traditional and historical trend of the Kenya
• 50:29
  shilling against a
• 50:30
  SPEAKER_01: basket of hard currencies.
• 50:32
  In the recent past,
• 50:33
  people have generated very healthy returns by simply holding
• 50:37
  hard currency.
• 50:39
  SPEAKER_01: Say what you will about Kenya, but we must be thankful.
• 50:42
  We are part of a country that is part of the global economic
• 50:46
  system that allows us
• 50:47
  SPEAKER_01: to transact in a currency other than our own.
• 50:50
  SPEAKER_01: So that's the first thing I would draw your attention to.
• 50:52
  SPEAKER_01: And then I did speak about shares.
• 50:55
  SPEAKER_01: If you've been ignoring shares because you believe it's gambling,
• 50:58
  SPEAKER_01: you believe it's more value,
• 51:00
  SPEAKER_01: year to date,
• 51:01
  SPEAKER_01: the whole market as a collective is up 20%.
• 51:05
  Last I checked,
• 51:06
  it's only an undefined on tick stocks which have not gone out
• 51:08
  this year.
• 51:09
  SPEAKER_01: Absolutely.
• 51:11
  SPEAKER_01: So I would ask, why are we not participating in this renaissance?
• 51:16
  SPEAKER_01: The market has been moribund.
• 51:18
  SPEAKER_01: It has been quiet.
• 51:19
  SPEAKER_01: Yes, it put you off.
• 51:21
  But do not let that history stop you from earning returns that
• 51:25
  are owed to you as a
• 51:27
  SPEAKER_01: Kenyan from your own market.
• 51:30
  SPEAKER_01: So I'm saying the money markets make sense.
• 51:32
  SPEAKER_01: I'm saying equities cannot be ignored.
• 51:35
  SPEAKER_01: A year ago, I would have been speaking about fixed income as well.
• 51:38
  SPEAKER_01: But I think we all know that interest rates have come down.
• 51:41
  There is a place for investing in bonds,
• 51:44
  but do wisely and in a balanced fashion.
• 51:47
  SPEAKER_01: So your listener asked for two suggestions.
• 51:49
  SPEAKER_01: I've given three.
• 51:50
  But I would dwell on the opportunity we're staying in equities
• 51:53
  at the moment,
• 51:53
  SPEAKER_01: not to be ignored.
• 51:54
  SPEAKER_01: And certainly,
• 51:55
  SPEAKER_01: we'd be happy to speak to you about our interest on a fixed income fund,
• 51:59
  SPEAKER_01: our Kenya Shilling money market fund,
• 52:01
  SPEAKER_01: and more issues to follow.
• 52:04
  SPEAKER_00: Having had all that,
• 52:05
  I think a basic question any Kenyan can ask is much data with a
• 52:09
  lot of information.
• 52:11
  SPEAKER_00: We have only five days, but people want to talk about more.
• 52:15
  We want to be passionate about financial resilience and
• 52:19
  financial fitness journey.
• 52:20
  SPEAKER_00: What would you advise them?
• 52:22
  SPEAKER_00: So my advice,
• 52:23
  SPEAKER_01: and like we said,
• 52:24
  SPEAKER_01: I think we've addressed people at different parts of the spectrum,
• 52:28
  SPEAKER_01: but my advice would be start with what is easy.
• 52:31
  SPEAKER_01: I'm going to leave you with a very hopeful plan.
• 52:34
  SPEAKER_01: Money Markets are designed to get you onto the investment ladder.
• 52:39
  SPEAKER_01: That is what they are designed to do.
• 52:41
  SPEAKER_01: You are benefiting from professional management,
• 52:44
  SPEAKER_01: fund management expertise,
• 52:47
  SPEAKER_01: low thresholds for entry.
• 52:48
  SPEAKER_01: A thousand shillings at Steinbeck Bank, you're in the game.
• 52:52
  SPEAKER_01: A hundred dollars, you're in the fixed income funding US dollars.
• 52:56
  SPEAKER_01: If you bank with us,
• 52:58
  You can be up and running within 5 to 10 minutes by dialing
• 53:03
  tower 208 hash.
• 53:04
  SPEAKER_01: And you can also do it on the app.
• 53:07
  SPEAKER_01: For me, it is the things that you can do.
• 53:10
  SPEAKER_01: And for us financial fitness is about not just the knowledge we have.
• 53:13
  SPEAKER_01: And to your point, Eric.
• 53:14
  SPEAKER_01: We've talked a lot.
• 53:16
  SPEAKER_01: We've said many things.
• 53:17
  SPEAKER_01: Hopefully, we have educated one another.
• 53:19
  SPEAKER_01: But many people get stuck there, sometimes even confused.
• 53:23
  SPEAKER_01: My advice is find that one thing.
• 53:26
  SPEAKER_01: Is it to buy Safaricom shares?
• 53:28
  SPEAKER_01: Is it to look at our latest research report?
• 53:30
  SPEAKER_01: and I have not been sent by Safaricom.
• 53:33
  SPEAKER_01: Eric is right, there are other counters at the exchange.
• 53:36
  I just talked about Safaricom because many of us can relate to
• 53:39
  it and it just so
• 53:40
  SPEAKER_01: happens to have delivered a fantastic return in this year.
• 53:44
  SPEAKER_01: I'm saying do what is easy.
• 53:46
  SPEAKER_01: We have an app that would allow you to trade stocks
• 53:50
  SPEAKER_01: Digitally, it's called the SBGS, which is SBG Securities.
• 53:54
  Walk into any of our branches,
• 53:56
  call,
• 53:57
  go to our website,
• 53:59
  standardbank.co.ke.
• 54:01
  You will get the information on asset management,
• 54:04
  on investments,
• 54:06
  on bank assurance.
• 54:07
  SPEAKER_01: Wherever it is, you can reach us.
• 54:09
  SPEAKER_01: You can reach me directly.
• 54:10
  SPEAKER_01: My address will be appearing here at KingaVingy on X.
• 54:15
  SPEAKER_01: You can find me at Financial Fitness as well,
• 54:18
  SPEAKER_01: Financial Fitness Kinga.
• 54:19
  SPEAKER_01: You can find LCNI.
• 54:21
  SPEAKER_01: So there's a number of ways.
• 54:22
  SPEAKER_01: So please don't let access stop you.
• 54:24
  I'm really looking forward to engaging with you alongside the
• 54:29
  team at Stabic Bank.
• 54:31
  SPEAKER_00: Thank you, Kingori.
• 54:32
  SPEAKER_00: I wouldn't add much more to that.
• 54:34
  SPEAKER_00: Thank you for your time in terms of helping us navigate.
• 54:37
  SPEAKER_00: I would really want to have you again in the near future,
• 54:40
  SPEAKER_00: I think,
• 54:40
  to just maybe tackle some common misconceptions about investing
• 54:44
  that people have.
• 54:45
  And some of the other things that you can also incorporate is
• 54:47
  behavioral finance in
• 54:49
  terms of how people can also look out for some of those biases
• 54:52
  that become a
• 54:52
  SPEAKER_00: challenge with how they invest and how they think about that.
• 54:56
  SPEAKER_00: Someone is asking about welfare groups and alumni associations.
• 54:59
  So they put together a bit of money here and there,
• 55:01
  but they don't know where to invest.
• 55:03
  Apart from money markets,
• 55:04
  what are some of the plans you'd advise them to consider?
• 55:06
  SPEAKER_01: I think with groups,
• 55:07
  SPEAKER_01: and thank you for that,
• 55:08
  SPEAKER_01: it would be remiss to have not spoken about what we're doing.
• 55:11
  We have an interesting solution that we'd like to talk to
• 55:14
  groups more and more about.
• 55:16
  SPEAKER_01: It's called Chama, the Stanbeck Bank Chama App.
• 55:19
  SPEAKER_01: So I've talked about probably a thousand apps.
• 55:22
  SPEAKER_01: I've talked about SPGS, iTrader app.
• 55:25
  SPEAKER_01: I've talked about what markers app.
• 55:27
  SPEAKER_01: There's an app for everything you need.
• 55:29
  SPEAKER_01: If you are a group,
• 55:30
  SPEAKER_01: an investment group,
• 55:31
  SPEAKER_01: an organized group,
• 55:33
  Chama app is where you can first organize yourself and ensure
• 55:37
  your money is
• 55:38
  SPEAKER_01: constantly earning some kind of a return.
• 55:41
  SPEAKER_01: And from that platform,
• 55:43
  SPEAKER_01: you can then now deploy it into other investments that we are constantly
• 55:47
  SPEAKER_01: introducing to the platform.
• 55:49
  SPEAKER_01: So I would like to respond by saying I think the challenge with groups,
• 55:53
  SPEAKER_01: if they are not very well structured,
• 55:55
  SPEAKER_01: like a form one group,
• 55:57
  SPEAKER_01: can tend to be in the informality.
• 55:58
  SPEAKER_01: You miss out of opportunities.
• 56:00
  SPEAKER_01: You take long to make decisions.
• 56:01
  The Chama app can help you with the administrative aspects of
• 56:05
  what you're doing
• 56:06
  SPEAKER_01: while keeping your funds invested.
• 56:08
  SPEAKER_01: And then as that organized group,
• 56:10
  SPEAKER_01: and I'm not saying enough already,
• 56:11
  SPEAKER_01: we would really be happy to have the session with you as a group.
• 56:16
  If you can bring your group together,
• 56:17
  we will talk to you about how we can build up a plan.
• 56:20
  SPEAKER_01: Kendrick, you probably want me to go into my closing remarks.
• 56:24
  I think what we're saying is financial fitness is attempting to
• 56:27
  make a clear
• 56:28
  distinction between the financial literacy that has become
• 56:31
  fairly commonplace and
• 56:33
  SPEAKER_01: the more proactive and action-oriented stance we think as Standard Bank,
• 56:39
  SPEAKER_01: we can help our clients and partners adopt.
• 56:42
  SPEAKER_01: We are saying that you need a partner who has capabilities.
• 56:45
  SPEAKER_01: We have these capabilities in-country,
• 56:47
  SPEAKER_01: integrated financial services organization,
• 56:50
  SPEAKER_01: working across commercial banking,
• 56:52
  SPEAKER_01: investment banking,
• 56:53
  SPEAKER_01: stockbroking,
• 56:54
  SPEAKER_01: asset management,
• 56:56
  SPEAKER_01: insurance.
• 56:57
  We can do these things for you and we're inviting you into this
• 57:00
  discussion where we
• 57:01
  can then articulate the ways in which we can respond to the
• 57:04
  challenges you are
• 57:04
  SPEAKER_01: facing and give you solutions.
• 57:06
  SPEAKER_01: I was reminded that banking has evolved.
• 57:09
  SPEAKER_01: 20 years ago, we gave you a product.
• 57:11
  SPEAKER_01: Today, we're challenged to give you a solution.
• 57:13
  SPEAKER_01: So that is who we are.
• 57:15
  But the other part of financial fitness is saying do not
• 57:19
  outsource a responsibility
• 57:20
  SPEAKER_01: for where you're trying to get to financially to anybody.
• 57:24
  SPEAKER_01: Financial fitness is about being at the heart of it.
• 57:27
  SPEAKER_01: That's why we're taking this time.
• 57:29
  SPEAKER_01: So that you yourself can articulate the dream you have into our goals.
• 57:34
  That you then break down that goal into steps which overcomes
• 57:37
  this procrastination
• 57:38
  SPEAKER_01: of I need a huge lump sum.
• 57:41
  SPEAKER_01: Break it down.
• 57:42
  SPEAKER_01: Like we said three minutes ago, just start.
• 57:45
  SPEAKER_01: And then once you are started,
• 57:47
  SPEAKER_01: by backing up that plan with action,
• 57:49
  SPEAKER_01: we truly believe your dreams will come true.
• 57:53
  SPEAKER_01: And we hope they do.
• 57:54
  SPEAKER_01: Stand it back in the Financial Fitness Academy.
• 57:57
  SPEAKER_01: Asante Nisana.
• 57:58
  SPEAKER_00: Thank you, Kingori.
• 57:59
  SPEAKER_00: A really nice one hour with you.
• 58:01
  SPEAKER_00: If you have any questions,
• 58:02
  please reach out to him and do follow Stan Kenya account and do
• 58:06
  reach out to the
• 58:06
  bank to make sure that you time up so you're able to get your
• 58:10
  financial fitness
• 58:11
  SPEAKER_00: back.
• 58:12
  SPEAKER_00: I realize, Kingori, we didn't explore the investment side so much.
• 58:15
  SPEAKER_00: We explored the financial fitness a lot,
• 58:17
  SPEAKER_00: but I think that leaves room for another discussion in the near future.
• 58:20
  SPEAKER_00: Kingori, you can also share any place you can find you.
• 58:24
  I'm on LinkedIn,
• 58:25
  but I saw a number of people have reached out to me on
• 58:27
  LinkedIn.
• 58:27
  SPEAKER_01: So happy to have conversations there.
• 58:29
  I think my vision with everything I've said is just to wish you
• 58:32
  good luck because
• 58:33
  SPEAKER_01: you also need luck in this.
• 58:35
  Thank you,
• 58:36
  Kingori,
• 58:36
  for taking time to enhance all the people in the audience.
• 58:40
  SPEAKER_00: Thank you for the one hour you've given us of your time.
• 58:42
  SPEAKER_00: We appreciate it very much.