What Is Compound Interest
Interest calculated on both the principal and accumulated interest from previous periods. You earn returns on your returns — creating exponential growth over time.
A Real Example
Ksh 100,000 invested at 12% annual return: Year 10 = Ksh 310,585. Year 20 = Ksh 964,629. Year 30 = nearly Ksh 3 million. You invested once and never added another cent.
Why Time Is Everything
An investor who starts at 25 and invests for 10 years, then stops, ends up with more than one who starts at 35 and invests for 30 years. The decade head start made all the difference.
Maximize It
Start as early as possible. Reinvest all returns. Invest consistently. Minimize fees. Be patient — compound growth is slow at first and explosive later.