Kenya’s rich are on the rise - report - CNBC Africa

Kenya’s rich are on the rise - report

East Africa

by Trust Matsilele 0

Kenya’s HNWIs on the rise. PHOTO: Wikipedia

There are approximately 8,500 high-net worth individuals (HNWIs) living in Kenya, with a combined wealth of 42 billion US dollars, this is according to Kenya 2016 Wealth Report.

According to the survey, 2015 was a good year for Kenyan millionaires as HNWI volumes rose by two per cent.

“Nairobi is home to the largest portion of Kenya’s HNWIs (6,200 individuals). There are also sizable Kenyan HNWI populations in Mombasa and Kisumu,” said the report.

According to the findings, Nairobi is the economic hub of Kenya with major industries in the city including financial services, real estate and construction, clothing, textiles, building materials, processed foods, beverages, and cigarettes.

Another city the report noted was Mombasa, home to the largest port in East Africa, serving as the principal port for a number of African countries including Kenya itself, Uganda, Rwanda, Burundi and the Democratic Republic of Congo.

“Major industries in the city include construction, transport and logistics, hotels, tourism, cement, oil refining and entertainment,” read the statement.

During the review period, December 2015, Kenyan HNWI volumes increased by 60 per cent from approximately 5,300 HNWIs in 2007 to 8,500 HNWIs in 2015.

“HNWI wealth rose by 75 per cent, from 24 billion US dollars in 2007 to 42 billion US dollars in 2015. This made Kenya one of the top performing countries in Africa during this period.”

The report says growth was positively impacted by strong growth in the local construction and financial services sectors, the migration of wealthy people from other East African countries, solid economic growth.

The report also says the country saw a negative impact, during the review period, due to the depreciation of the local currency and a drop in the local stock market.

This growth was impressive compared to other major African countries – HNWI numbers in South Africa and Nigeria were down 18 per cent and 28 per cent respectively in 2015.

The report says outlook for Kenya is positive.

“We expect the number of Kenyan HNWIs to grow by 80 per cent, to reach approximately 15,300 by 2025. This will make Kenya one of the top five performing HNWI markets in Africa over this period, along with Ivory Coast, Ethiopia, Mauritius and Tanzania,” said the report.

“It will also make Kenya one of the top 20 performing HNWI markets in the world over this period.”