The wealthiest in town looking to expand their private investment portfolios are splashing their cash on art, cars, watches, whisky, and furniture.
According to Knight Frank real estate company backed “Wealth Report 2024”, a huge chunk of rich Kenyans with greater interest in art hit a substantial 70%, a significant increase compared to the previous year when the majority (50%) showed a penchant for purchasing classic cars.
Art was also highlighted by the same report as the best-performing luxury asset class in 2023, experiencing an impressive 11 percent price increase. Besides art, some 57.14 percent of wealthy people focus on cars and watches, 42.85 percent bet on whisky, and 35.71 percent on furniture, signalling changing trends in passion related investments.
The shift from classic cars to art among Kenyans suggests a dynamic response to global investment trends and attests to 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.
Knight Frank Kenya CEO Mark Dunford said during the launch ceremony of the report that the shift aligns with global patterns, and that Kenya is generally attractive to wealthy investors due to its “politically stable” market.
“We have financial systems that work, judicial systems that function, infrastructure that’s improving and a growing market place in terms of middle-class Kenyans who can afford to spend money. So, we have access to the continent from here, it’s a great place to come and invest,” said Dunford.
Similarly, the report found that high-net-worth individuals in Kenya are currently 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 terms of ownership, with about 10 percent of Kenyan super rich now owning homes abroad, down from 14 percent at the beginning of 2023.
It is also interesting that the trend has led to a drop in interest by the wealthiest 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.
