Thanks all, for your insightful comments,
@ Barrywhite, he didnt have anything in particular apart from just starting a business when he retired, there are some people who actually live like that.
@ Hill, He will get the whole of his package, that he is sure of.
@accelriskconsult, you have a good idea there, will definitely suggest it to him.
@ Genghis Khan, I'm not sure what you mean exactly, is it that he should take an insurance policy with his lumpsum? please clarify.
His working income was roughly 28K after taxes, he was/is a spendthrift, the kind of guy whose salary is over by the 2nd of the month.
No dependants, no assets.
@ Mkonomtupu, I like your frankness, but how about if someone else were to manage his business for him?

I think any business can be successful; that is why there are businesses in all manner of things. What matters and will count at the end of the day will be your passion (and knowledge) for the business, your strategy and your management style. Thats why one person succeeds in one venture and another fails. That's why its hard to recommend a business for someone; it has to come from within not without; and if it comes from without, you have to internalise it, sort of own it and drive it as if it came originally from you. Otherwise all businesses will make money, but not for all people. You the businessperson is such an integral and critical input into the business' success.

the kuku are a great business. if he was to do it, try the kienyji which are not too picky about food and living conditions since he's just learning. as he learns how to handle them better, he can move to the layers or broilers.
i'm with the houses idea, the houses, he will finish the lump sum money before he parties all of it away and he won't require too much input to manage thereafter so the partying can continue!!!!this is retirement!!
all the best

Yes, if you take a lump sum to any insurer they will give you an annuity also known as a pension. This means you get regular monthly payments for life.

mapozi Given the fact that your Uncle loves to party and i assume he has a wide enough network of party/business associates and friends...maybe a business along the same lines would be just what he needs. I suggest setting up an events management co. Target specific and geared towards small and medium enterprises/organizations looking to put together retreats, office parties, launches...etc. All he would need to do is set up a functional website (Cost Ksh6500), send out proposals (from a cyber if need be) make follow-up calls and set up meetings with clients. His role would be simple...putting the event together and all he charges is his service percentage.

I would HIGHLY recommend that he hire a professional on a part time basis to handle accounting though. (you'd be amazed at how many CPA/Degree holders out there who are well qualified for the job and glad to make that 1 or 2K an hour).