In a move signalling a shift towards domestic investments, Kenya’s High-Net-Worth Individuals (HNWIs) are redirecting their focus from foreign assets to bolstering their positions within the country, driven by a climate of economic growth and stability.
Knight Frank, a leading global property consultancy, revealed this trend in its Kenya edition of the Wealth Report 2024, based on insights from private bankers and wealth advisors.
According to the report, expectations of wealth growth among Kenyan HNWIs remain robust, with 62.5 per cent anticipating increases in their wealth in 2024. This confidence in local investments comes amidst projections of Kenya’s GDP rising by 5 per cent in 2024, outpacing the global average of 3.1 per cent and the average of 4.2 per cent across developing and emerging economies, as reported by the IMF.
“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 favour of building bigger positions at home,” noted Mark Dunford, CEO, Knight Frank Kenya
The survey revealed a significant increase in the proportion of wealth invested in homes, with approximately 60 per cent of HNWIs now holding their wealth in real estate.
Nearly 30 per cent of respondents purchased a home in 2023, and a similar percentage plans to acquire another home in 2024. Notably, the ownership of homes abroad among Kenyan HNWIs has decreased to 10 per cent, down from 14 per cent in 2023.
In addition to home investments, HNWIs are showing interest in various property sectors, including farmland, hotels & leisure, and privately rented residential properties. Notably, there is a growing emphasis on sustainability, with a significant number of HNWIs investing in renewable energy sources and seeking sustainable certifications for their properties.
“This shift towards greater sustainability even echoed into Kenyan HNWI’s investments of passion, with a strong shift from cars to art, now favoured by over 70 per cent of HNWIs as their top collectable,” said Boniface Abudho, Research Analyst, Knight Frank Africa
