Kenya’s high-net-worth individuals (HNWIs) are rethinking their investment strategies, moving away from luxury assets and foreign properties in favour of income-generating domestic ventures, a Knight Frank’s 2025 Wealth Report, Kenya Edition reveals.
As global economic conditions remain uncertain, the report reveals a significant reallocation of wealth by Kenya’s affluent class. Investors are now favouring liquid and locally based assets, such as food production, technology, treasury bonds, and Real Estate Investment Trusts (REITs), over traditional lifestyle investments like multiple homes or overseas property.
“This pivot in investment highlights the adaptability of HNWIs and their assessment of the country’s strongest opportunities ahead,” said Boniface Abudho, research analyst at Knight Frank. He noted that a slowdown in previously dominant sectors such as construction and mining has driven a rapid reassessment of investment priorities.
The shift comes alongside slower growth in the number and net worth of Kenyan HNWIs in 2024. More than 60% of wealth managers surveyed reported less than a 10% increase in clients’ wealth over the past year. However, Knight Frank reports a maintained sense of investor confidence moving into 2025, buoyed by the pursuit of more resilient and productive investments.
The report documents a stark drop in wealth tied up in personal homes, from 60% in 2023 to just over 20% in 2024. Similarly, ownership of four or more homes declined from 37.5% to 22.2%, while foreign property ownership fell to just 10%.
This domestic focus is further reflected in property buying intentions: 66% of HNWIs planning to purchase homes in 2025 intend to do so in Kenya, up from just 33% in 2024.
“In global terms, Kenyan returns remain sharply ahead of the world average,” said Mark Dunford, CEO of Knight Frank Kenya, adding that rising uncertainty in many global markets is only serving to heighten HNWIs’ interest in their home market.
Environmental and social concerns are also shaping investment decisions. In 2024, many HNWIS made strides in energy efficiency and sustainability, cutting back on air travel and car ownership, and investing in greener property upgrades.
“We are witnessing a transition from consumption to conservation,” Dunford said, citing a stronger emphasis on environmental and social outcomes.
Looking ahead, data centres and development land top the list of preferred investment targets, accounting for over 28% of first-choice investments. Farmland, particularly for food production, also commands strong interest, along with logistics, hospitality, and office space.
Despite a softening interest in commercial property, with only half of wealth managers expecting their clients to invest in the asset class in 2025, the overall outlook remains cautiously optimistic. Nearly half of the respondents anticipate a slight increase in wealth in 2025, while 26% expect gains exceeding 10%.
The report paints a picture of a wealthy class in Kenya that is recalibrating, focused less on prestige purchases and more on resilience, returns, and sustainable impact.