The Problem With Mixing Money
When personal and business money sit in the same account, you cannot tell whether your business is profitable, whether you are paying yourself fairly, or where leaks are happening.
Three Steps to Separation
Step 1: Open a business bank account
Most Kenyan banks now offer low-cost accounts designed for MSMEs. Choose one with no monthly fees or minimum balance.
Step 2: Pay yourself a fixed amount
Transfer a set salary to your personal account on the same day each month. This makes your personal budget predictable.
Step 3: Use a simple bookkeeping tool
You do not need expensive software. A notebook or a free app like a spreadsheet is enough to start.
Once you separate your finances, every other financial decision becomes clearer — from pricing to borrowing to investing.