- Bob Muriuki won KSh 109 million after correctly predicting match outcomes on Mozzart Bet, becoming an overnight millionaire
- The new millionaire in town said he had a rough idea of what he wanted to do with the money but did not provide the details
- Personal finance expert Eric Muchoki advised Muriuki to invest the money in a Money Market Fund (MMF) to earn over KSh 16 million in interest within the first year
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A week ago, Bob Muriuki made headlines after winning a whopping KSh 109 million after correctly predicting match outcomes on Mozzart Bet.
How Bob Muriuki won KSh 109m
The new millionaire in town revealed he placed a stake of KSh 37.
Muriuki said he had a rough idea of what he wanted to do with the money.
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"While seeking wisdom from God, it's good to listen to other people," he said, but did not elaborate.
How Bob Muriuki should invest
In an exclusive interview with TUKO.co.ke, personal finance expert Eric Muchoki advised Muriuki to invest the money in a Money Market Fund (MMF).
Muriuki, the director of Customized Solutions Insurance Agency, recommended that the best option for such a lump sum is an investment plan with maximum compounding.
"A Money Market Fund (MMF) would, therefore, be an ideal investment plan since it works on daily compounding interest," Muchoki explained.
How much will Muriuki earn from MMF?
According to Muchoki's calculations, Muriuki would earn KSh 16.35 million within the first year of his investment.
Since compound interest is defined as interest earned from both the principal and previous interest, the amount would increase annually.
"In his case, KSh 109 million will earn KSh 44,794 on the first day. By the end of 30 days, interest earned only will be KSh 1,343,835 while his KSh 109 million is still intact. By the end of a year of 365 days, interest earned alone will be KSh 16,350,000. Therefore in total, he will have KSh 125,350,000," Muchoki elaborated.
According to the personal finance expert, if Muriuki gives the green light for the entire amount to compound for the second year, he will have a total of KSh 144,152,500.
At the end of the tenth year, he will have made KSh 383,448,515, and by the end of the 17th year, he will have accumulated KSh 1,019,980,673.
"The above figures are derived when no withdrawal is made and on the assumption that the interest rate remains constant at 15% per annum with daily compounding. However, the interest rate depends on prevailing market conditions at any given time," Muchoki clarified.
Why MMF is safe
Muchoki notes that MMF is a secure investment since the Capital Market Authority regulates it.
"Monthly statements are shared to track your earnings, and you can withdraw either partially or in full at any time upon request. We are available to offer a personalised investment plan," he added.
How Nyeri student became a millionaire
In other news, Safaricom declared Eric Kanumbi the winner of KSh 1.25 million in its Shine Kenya Shinda Mamilii Kama Bingwa Promotion.
The telco said Kanumbi would invest the money in a boda boda business and use part of the funds to complete his studies at Nyeri Polytechnic.
The Shinda Mamilii Kama Bingwa promotion allows customers to participate by transacting on M-Pesa or purchasing Shine Kenya bundles.
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