If you had Ksh 100,000 to invest in the Nairobi Securities Exchange today…
Which stocks would you buy?
Not guesses.
Not hype.
But fundamentally solid companies that can give you BOTH growth and dividends.
Today, I want to show you the seven stocks currently on my radar as I prepare for the 100K Stock Market Challenge.
And I want your honest opinion.
The 100K Stock Market Challenge is officially starting.
And I want to involve you in the process.
My goal is simple:
To build a small but powerful portfolio from the NSE using Ksh 100,000 as the starting capital.
The plan is to invest in 4 or 5 stocks, distributing the capital as equally as possible.
But before I execute the buy orders, I want to show you how I arrived at my shortlist.
My Investment Strategy
My goal is to build a portfolio optimized for two things:
1. Capital Growth
This means buying strong companies and selling when the share price appreciates.
2. Dividend Income
This creates consistent cash flow, regardless of price movements.
A strong portfolio should ideally give you both.
The Model I Am Using
To identify potential opportunities, I am applying a simple but powerful framework:
The 3-Ratio Strategy + Dividend Yield Analysis
This looks at four key indicators (5-year averages):
P/E Ratio (Price to Earnings)
P/B Ratio (Price to Book)
ROE (Return on Equity)
Dividend Yield
My Rule of Thumb
When screening stocks, I focus on the following signals:
Low P/E (<5) → The stock may be cheap relative to earnings
Low P/B (<1 ideally) → Trading below intrinsic book value
High ROE (>15%) → Strong profitability
Dividend Yield (>5%) → Solid cash flow
Using this framework helps identify undervalued companies with strong profitability and reliable dividends.
Execution Plan
I will purchase the shares through the Ziidi Trader Platform.
Why Ziidi Trader?
Because it is currently one of the most seamless ways to access the stock market.
Integrated directly in the M-PESA App
Easy funding from M-PESA
No transfer charges when funding the account
Low brokerage costs
Smooth buying and selling process
For many Kenyans, this removes the biggest barrier to investing: ACCESS.
(Note: Ziidi Trader and Safaricom do not endorse or recommend the purchase or sale of any specific stock.)
The 7 Stocks On My Radar
KCB Group
Kenya Reinsurance
Stanbic Holdings
Diamond Trust Bank
Absa Bank Kenya
I&M Group
Co-operative Bank
From this list, I will eventually select 4 or 5 stocks for the final portfolio.
Now from your own analysis:
Are these good buys right now?
Which ones would you keep or remove?
Alex Mwangi | The Cent Warrior
WhatsApp 0703472299
