UGX 3BN gone in 9 months!

Story Time/True Story.

One day, a man—let’s call him Ken—sold a prime piece of land located along the scenic shores of lake Victoria here in Uganda for a staggering UGX 3 billion. Yes, billions in UGX. (USD 814,349)

What did he do next? He squandered the money. He bought every flashy car he could lay his eyes on and surrounded himself with beautiful women. He booked Business-class flights to luxury destinations and lived a life of extravagant bliss.

But here’s the twist: before all this, he had been advised to invest the money in treasury bills while he carefully mapped out a long-term plan. His response? “None of you gave me advice when I was poor—just chill and give me my space.”

Let’s break this down: At a 13% interest rate on Treasury Bills, Ken could have earned UGX 390 million in 12 months or UGX 195 million in just six months—money he could have spent freely while still maintaining his capital.

But guess what happened? None of that. The UGX 3 billion was completely gone within 9 months.

As of this writing, Ken is back to square one.

From my conversation with a banker, I learned that most Ugandans could make a good return by directly investing in Treasury Bills through their Commercial Banks to Bank of Uganda rather than going through Unit Trusts. Why? Unit Trusts act as brokers and charge a 3% commission, money you could save by dealing directly with the Bank of Uganda.

Ken also had flexible options to schedule his treasury bill investments for 3, 6, or 12 months. With such a plan, he would have never run out of money and could have continued enjoying life while rubbing shoulders with Uganda’s "elite".

I won't deny, I have been a victim to poor investment decisions and spending. I usually have so many ideas to implement but as soon as I get access to money I don't know what happens, I forget all the brilliant risk averse investments that require patience to materialise.

A financial windfall is exciting, but how does one manage the excitement, how does one recover from wasting such an opportunity of a "lifetime"?