Kenya’s wealthy are adjusting their investment strategies in response to rising global economic uncertainty, with not only as an investment but also a symbol of prestige.
According to the Kenyan edition of “Wealth Report 2025” released by Knight Frank real estate firm on Tuesday, May 13, 72 per cent of Kenya’s wealthy expressed interest in acquiring art, with classic cars following closely at 50 per cent.
Jewellery and high-end furniture both garnered interest from 44 per cent of high net worth individuals. Rare, high-quality pieces, especially those with historical significance or find craftsmanship, have demonstrated potential for appreciation over time.
“There’s uniqueness of Kenyan art. It could also mean that the economy is growing,” Mark Dunford, CEO Knight Frank Kenya, says.
There is also a notable dip in inherited wealth, which currently constitutes a minority share of the investment portfolios of the super rich. A majority reported that inherited assets account for 30 to 40 per cent, an indication that there is a rise in the number of self-made billionaires.
The report indicates that a huge bulk of wealth managers say that most wealthy Kenyans are generating their wealth through diverse entrepreneurial ventures.
However, it is important to acknowledge that inheritance still plays a role in wealth creation and accumulation – 6 per cent of wealth managers reported that customers’ wealth was not inherited in any form.
“People are now starting to build their own wealth rather than inheriting from old folks,” says Boniface Abudho, a research analyst at Knight Frank. “Most of Kenya’s wealth tend to inherit assets, but they typically hold these in relatively conservative portfolios while focusing their efforts on generation new wealth through more productive and venturesome investments.”
Commercial real estate
Interest has waned, even though commercial real estate has long been a mainstay of the wealthy in Kenya and still draws cash, interest has waned as 50 per cent of wealth managers say less than 10 per cent of their clients want to make investments in this asset class in 2025.
Overall, cautious optimism is being fueled by the wealthy’s measured attitude and shift towards assets that generate income and liquid cash. Nearly half of respondents (48 per cent), for example, anticipate a small growth in wealth in 2025, while 26 per cent anticipate increases of more than 10 per cent.
Home purchase activity remains subdued, with 61 per cent of wealth managers indicating that less than 10 per cent of their clients bought a home in 2024. Looking ahead to 2025, 53 per cent eye home purchases, with 22 per cent apportioning their wealth to primary and secondary homes.
“With the slowdown in 2024, particularly in sectors that have been key to wealth creation, such as construction and mining, dampening overall wealth creation, there has been a considerably rapid shift in HNWIs’ portfolios and priorities,” Abudho explains.
The report highlights a growing sense of domestic focus among the wealthy Kenyans, as evidenced by a decline in foreign homeownership. As of 2024, only about 10 per cent of Kenyan wealthy own homes abroad, down from 14 per cent at the beginning of 2023.
Additionally, 66 per cent of the super-rich favoured Kenya as their first option, compared with 33 per cent last year, further reinforcing the shift in interest towards domestic investment.
There is a shift from residential and foreign assets in favour of more liquid, higher-yielding opportunities within the country.
In terms of allocation, fund managers reported that over half of inherited wealth is held in property, primarily in private rented residential real estate debt. Smaller allocations are directed towards the development of land and education.
In an era where not everyone is not lucky to have a god father, the question on many peoples’ lips is whether the bulk of the super-rich start from scratch or they inherit their wealth.
There is big shift in the commercial space, and with a shift to hybrid work model, it is not guaranteed that an investor will get good occupancy.
“Real estate is a good long term investment option and we are seeing more interests in mixed development – such as smaller commercial centres, pop ups on road sides. In the long term the returns are better,” says Dunford.
During the release of the report it was clear that there is a lot of confidentiality within the super-rich group. So, the report did not reveal what sectors the high net worth individuals are truly investing in.
