In a vibrant city marked by luxurious cars and extravagant lifestyles, Leonard and Emily Mcharo have taken an unconventional route toward success. Over the past decade, this Nairobi couple has sacrificed holidays, weekend trips, and even basic treats for their children, dedicating every extra shilling to one primary objective: achieving financial independence by their forties.
Their strategy proved successful. In 2016, at the ages of 42 and 37, the Mcharos transitioned into retirement from their corporate careers, with passive income generated from real estate allowing them to not only meet but exceed their living expenses. Through their company, Tsavo, they now assist thousands of Kenyans in pursuing the same dream, even as the country faces housing shortages and economic instability.
Inspiration from Family
Their journey began in the late 1990s at the University of Nairobi, where Leonard pursued architecture and Emily earned her credentials as a certified public accountant. They connected in 1998, united by their ambitions and a shared apprehension about the financial instability that had affected their families.
Leonard often reflects on his grandfather, a humble civil servant who enjoyed a comfortable retirement due to wise saving and investments in farmland and rental properties. “He was careful and frugal throughout his life, allowing him to live well in his later years,” Leonard reminisces. In stark contrast, both their fathers experienced financial downturns, which solidified the Mcharos’ commitment to avoid a similar fate. In 2004, they established a clear target: to generate KSh500,000 (approximately USD3,850) in monthly passive income.
Investing in Student Housing
The couple identified student accommodation as their investment avenue. Emily, having experienced hostel living during her studies, understood both the demand for such housing and its lucrative potential. “My mother had to pay substantial hostel fees for me to attend campus,” she recalls, affirming their belief that there was substantial profit in the accommodation sector.
When they discovered land for sale near Daystar University priced at KSh1 million, they faced a significant obstacle. However, they successfully negotiated a payment plan that allowed them to pay KSh27,000 monthly. From that moment on, they adopted a lifestyle of austerity.
Building Their Dream, Brick by Brick
Construction commenced promptly. They started with 23 units and rented out each completed section, reinvesting the income into future construction phases. Over the course of 13 years, they expanded their property portfolio to 100 units, reluctantly sacrificing social connections during the process. “It was challenging to maintain friendships, as our choices set us on a distinct path,” Emily admits.
While they prioritized their children’s education expenses, Leonard underscores, “We invested significantly in their schooling, but minimal spending characterized all other aspects of our lives.”
Empowering Others Through Tsavo
By 2015, their hostel business generated consistent rental income, prompting the launch of Tsavo, a real estate investment firm aimed at democratizing their successful model. They retired just a year later.
Nearly a decade later, Tsavo has emerged as a key player in Kenya’s affordable housing sector, developing studio and one-bedroom apartments priced between KSh1.4 million and KSh2.6 million for middle-income earners, young professionals, and the diaspora. Their projects extend across various Nairobi suburbs, including Embakasi, Thindigua, Rongai, Roysambu, Dagoretti, and Kileleshwa.
Making Home Ownership Accessible
Tsavo offers flexible payment plans, including zero-deposit options, with monthly installments starting at KSh35,000, making home ownership achievable for many. The company also manages properties, helping investors earn passive rental income with ease.
The Mcharos have created a company ethos called “Tsavoism,” which emphasizes discipline, collaboration, and value innovation. “We believe everyone deserves the opportunity to address their needs and aspirations through passive income from rentals,” they state on their website.
As Kenya faces a housing shortfall estimated at over two million units, Tsavo’s approach is becoming increasingly relevant. The firm has completed numerous projects, attracting investors eager for financial stability. Now in their late forties and early fifties, the Mcharos enjoy a comfortable life from their investments while continuing to guide Tsavo’s growth.
Reflecting on their journey, Emily states, “Our lifestyle choices were deliberate. No matter our income, we didn’t alter our living conditions, vehicle choices, or spending habits. Every additional coin was directed toward investment.” For many Kenyans navigating economic challenges, the Mcharos provide a compelling message: financial freedom is within reach, but it requires sacrifice.
