•The survey further revealed that the rich investors are increasingly diversifying their interest in property investments beyond traditional residential homes.
•Kenya has many high-net-worth individuals summing up to 7,200 millionaires with, Nairobi accounting for 4,400 of these.
Image: WILLISH ADUR
Kenya's filthy rich are slowly ditching their love for luxury cars in favour of arts, jewelry and expensive alcohol.
The Knight Frank’s Luxury Investment Index shows that a greater majority of 70 percent of Kenyan super-rich clients have shown a keen interest in art, marking a substantial increase compared to the previous year when the majority (50 percent) favored classic cars.
The latest data from the index emphasizes the growing prominence of art as the top-performing luxury asset class in 2023, with an impressive 11 percent price increase.
According to Knight Frank CEO Mark Dunford, this transition from classic cars to art among Kenyan clients reflects a dynamic response to global investment trends and demonstrates the evolving nature of passion investments.
"The resilience of the art market in the face of broader economic fluctuations further underscores its appeal as a tangible and culturally rich asset class," said Dunford.
Investments in cars and watches come second both at 57 percent, while whiskey and Jewelry also come third both at 42.9 percent.
There has also been a notable shift where a majority of HNWIs are looking to real estate to secure their investments.
The survey by Knight Frank shows that Kenya's super rich, are holding about 60 percent of their wealth in homes, with just under 30 percent buying a home in 2023 and around the same percentage planning to buy another home in 2024.
This has already brought a shift in the balance of ownership, with about 10 percent of Kenyan wealthy now owning homes abroad, down from 14 percent at the beginning of 2023.
The 2024 Africa Wealth Report by International Wealth Advisory Firm, ranked Kenya has among the big five wealthy markets in Africa having millionaires and billionaires.
Kenya has many high-net-worth individuals summing up to 7,200 millionaires with, Nairobi accounting for 4,400 of these.
"Kenya's growth is bringing a resurgence in HNWIs buying Kenyan property. This includes second and third homes in addition to their commercial property investments. Wealthy investors have also taken a step back from foreign assets in favor of building bigger positions at home," said Knight Frank Kenya CEO Mark Dunford.
Specifically, the number of individuals in Kenya with liquid investable wealth exceeding $1 million (Sh131.5 million) declined from 7,700 in 2022 to 7,200 in 2023.
In non-home property, while interest remained subdued in commercial property, HNWIs reported strong interest in investing in additional farmland, hotels & leisure, and privately rented residential properties in 2024.
The survey further revealed that rich investors are increasingly diversifying their interest in property investments beyond traditional residential homes.
Sectors like farmland and hotels & leisure have seen significant investor attention in the past year.
According to Dunford, 77.5 percent of Kenya's wealthy are now investing in farmlands while 69.4 percent are looking to tap into the leisure and tourism sector that has been on the recovery post Covid-19.
A slight majority of the wealthy (58.6 percent) are also pumping their investments into privately rented residential properties.
The student housing sector also remains a strong contender in the race for investments with 52.7 percent of the HNWI diversifying into this sector.
On the other hand, sectors like real estate debt, logistics, and data centers are also attracting investor interest, albeit to a lesser extent, with scores ranging from 13.3 to 30.
According to Knight Frank, Kenya has emerged as a haven for its wealthiest investors, as the country's growth lures funds back home amid world turmoil and post-Covid slowdowns.
The global uncertainties have seen Kenya's High-Net-Worth Individuals reduce focus on foreign assets in favour of building bigger positions at home.
“The shift in assets has also seen a drop in interest by HNWIs in second passports, with almost a third of wealth managers reporting that none of their clients were now interested in another passport or citizenship, and another third reporting that fewer than 10 percent were,” added Dunford.
The number of rich Kenyans looking for dual citizenship dropped to below 10 percent from 26 in 2023, attributed to uncertainties in the foreign markets.
The attitudes survey, which is based on responses from private bankers and wealth advisors, found expectations of wealth growth among Kenya's rich remain strongly positive.
An estimated 62 percent of the HNWI expect to see growth in their wealth across 2024 with only 24 expecting a drop.
A further six percent expect a significant decrease while the remaining 13 percent expect their wealth to remain the same.
According to the IMF, Kenya's GDP is forecast to rise by 5 percent in 2024, compared with a global average of 3.1 percent and an average of 4.2 percent across the world's developing and emerging economies.
The 2024 Africa Wealth Report by International Wealth Advisory Firm, ranked Kenya as among the big five wealthy markets in Africa having millionaires and billionaires.
According to the 2024 Africa Wealth Report published by International Wealth Advisory Firm, Kenya is at position four in terms of wealth ownership.
In 2023 a combination of factors saw 500 Kenyans drop in their millionaire status due to a weakened shilling affecting the valuation of their liquid investable wealth in dollar terms.