Britam has launched KidNest, a children's investment account that allows parents and guardians to start building funds for their children's future from as low as Ksh1,000.

🇰🇪 Breaking It Down

The account is designed for children aged between zero and 25 years and targets parents, guardians, relatives, and well-wishers seeking to invest consistently towards education, healthcare, and other future financial needs.

KidNest has a minimum top-up amount of Ksh100, allowing investors to make regular contributions after opening an account.

“For an investor, time is the greatest advantage money cannot buy. If you look at a modest investment made with enough time. Do consistently and with room to compound. It can outgrow far larger sums invested later,” Tom Gitogo, Britam Group CEO, asserted.

📌 What You Need to Know

To improve transparency and easy tracking of the fund, the account or investor name will show the custodian's name alongside the child's name, allowing the investment to be associated directly with the child.

The fund also allows parents or guardians to accommodate more than one child and make age-based transfers.

According to Britam Asset Managers, the fund is positioned as a low-risk investment vehicle focused on short-term instruments.

Britam says that with this particular fund, there is no lock-in period because KidNest is an open-ended fund.

Interest is compounded daily, with the applicable rate fluctuating depending on market performance. According to Britam, the rate is calculated based on the return earned by the fund for the day.

The published rate is net of the annual management fee but gross of the 15 per cent withholding tax.

📰 Source: Kenyans.co.ke