Why rich Kenyans are trooping back to invest domestically

Kenya’s growth agenda has attracted its wealthiest investors back home, reducing their focus on foreign assets in favour of building larger positions domestically.

The 2024 Knight Frank report on Wealth Investment indicates that amidst global turmoil and post-Covid slowdowns, Kenya’s High Networth individuals (HNWIs) are increasingly investing domestically, drawn by the country’s growth prospects.

Safe haven

According to the Knight Frank CEO Mark Dunford, Kenya has emerged as a safe haven for its wealthiest investors, as the country’s growth lures funds back home amid world turmoil and post-Covid 19 pandemic slowdowns.

“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,” he said.

The report, based on responses from private bankers and wealth advisors, indicates that 62.5 per cent of Kenyan HNWIs anticipate wealth increases in 2024, with three-quarters expecting to maintain or increase their wealth.

This positive outlook follows a shift in assets out of foreign markets and into expanded investments in Kenya.

According to the survey found that HNWIs are now holding about 60 per cent of their wealth in homes, with just under 30 per cent 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 per cent of Kenyan HNWIs now owning homes abroad, down from 14 per cent at the beginning of 2023, the report notes.

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 per cent were.