Passive Income Streams for Kenyans in 2025

What is passive income?

Passive income is money that one earns from investments that do not require immediate or continued involvement. Many articles on the internet suggest that passive income is money that is earned without too much effort but I don’t consider such a definition correct. First, every avenue in which a person gets money from requires a lot of effort. Some passive income means call for one to have a good and unique strategies while others require someone to have lots of hard work.

Therefore, we can conclude that passive income is a form of income that continues to be earned over time after the initial investment is made which can be money or other resources. It is different from the traditional forms of employment whereby a person trades their time for money on a regular basis.

The most common types of passive income streams as provided by many researchers comprise of affiliate marketing, social media influencing, drop-shipping business, become a swing trader, sell digital art online among many others.

Examples of Passive Income Streams in Kenya

Money Market Fund: 

Becoming a Blogger/Youtuber:

Become a Swing Trader: 

Social Media Influencing: 

Affiliate Marketing: 

Selling Digital Art Online: 

Drop-Shipping Business:

1. Dividend Stocks: Investing in stocks that pay dividends allows you to earn a share of the company's profits. These dividends are typically distributed regularly to shareholders without requiring them to actively manage or participate in the company's operations.

2. Rental Income: Owning real estate and renting out properties is a classic example of passive income. Landlords receive regular rental payments from tenants, providing a steady stream of income.

3. Interest from Savings or Investments: Interest earned from savings accounts, certificates of deposit (CDs), or bonds can be a source of passive income. Your money grows over time through interest payments without requiring ongoing active involvement.

4. Royalties: If you're a creator, royalties from intellectual property, such as books, music, or patents, can generate passive income. Each time your work is used or sold, you receive a portion of the revenue.

5. Affiliate Marketing: By promoting and selling other people's products or services through affiliate programs, individuals can earn a commission on each sale generated through their referral links. This can be done through websites, blogs, or social media.

6. Online Businesses: Creating and monetizing online businesses, such as e-commerce stores, blogs, or YouTube channels, can generate passive income through advertising, affiliate marketing, or the sale of digital products.

7. Peer-to-Peer Lending: Investing in peer-to-peer lending platforms allows you to earn interest by lending money directly to individuals or small businesses.

8. Automated Businesses: Some businesses can be set up to run with minimal day-to-day involvement, such as automated dropshipping stores, where third-party suppliers handle inventory and shipping.