Britam launches KidNest investment account for children
The account allows parents and guardians to start investing with Sh1,000, with additional contributions from Sh100. It is available for children from birth to 25 years.
Nairobi, Kenya – Britam Asset Managers has introduced KidNest, an investment account tailored for children, aimed at encouraging families to begin saving and investing for their offspring at an early age. This account enables parents and guardians to start investing with a minimum of Sh1,000, with supplementary contributions of Sh100. The KidNest account is accessible to children from birth until the age of 25.
Tom Gitogo, Britam Group Managing Director and CEO, highlighted that initiating the investment process early provides children with more time to accumulate wealth through consistent investing and compounding. The launch of KidNest comes as Kenya continues to grapple with issues surrounding savings and financial literacy. According to the 2024 FinAccess Household Survey, the percentage of adults who save dropped from 74% in 2021 to 68.1% in 2024, while only 18.3% were deemed financially healthy.
The survey also revealed that formal financial access had increased to 84.8%, although only 42.1% of Kenyans exhibited high financial literacy.
Concepta Ayuma, Britam Asset Managers' Head of Business Development, explained that the product was designed to transform children from mere consumers into early investors. Ayuma emphasized the goal of shifting societal perceptions, moving away from viewing children as spenders and instead nurturing them as early investors. Unlike traditional children's savings accounts, KidNest incorporates elements that allow children to actively monitor their investments and establish financial objectives as they mature.
Unlike conventional savings products for children, KidNest fosters active participation from young investors. Parents can contribute to the account through Britam's digital channels, such as the My Britam App and the USSD code *705#. Tom Obatsa, Britam Asset Managers CEO and Principal Officer, stressed that the product capitalizes on children's natural advantage of starting early.
Obatsa emphasized the company's vision of fostering a culture where saving and investing become integral parts of childhood, rather than being considered only after one starts working. He urged parents to refrain from treating their children's investments as easily accessible emergency funds, advocating for long-term investment strategies that can potentially fund education, entrepreneurial pursuits, or other significant life goals.
Financial literacy advocate Shelmah Wanjiku Ndung’u underscored the critical role parents play in educating children about money management. Ndung’u encouraged parents to instill the distinction between needs and wants and to cultivate saving habits in their children from a young age. She pointed out that while discussions about money are ubiquitous, the focus on effective money management has often been overlooked.
Britam's KidNest account is part of the company's broader strategy to broaden access to professionally managed investment products. Britam currently manages over Sh250 billion in assets, and KidNest is intended to help children grasp concepts like saving, investing, and the value of delayed gratification as they progress into adulthood.
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