A large portion of the ultra wealthy population in Kenya resides in the capital city of Nairobi, while most of this segment has accumulated its riches through strategic investments at the Kenyan stock exchange, according to new analysis from global real estate consultancy Knight Frank.
Kenya is among the largest economies in Africa, and has rapidly emerged as a centre for economic growth on the continent. The country’s stable political environment, coupled with its relatively high level of economic diversification have contributed to its position as one of the most lucrative areas for investment in the region.
According to Knight Frank, signs of economic prosperity are emerging in the growth of the wealthy segments of Kenya’s population. The global consulting firm examined the investment portfolios of these individuals, with the objective of determining the sources of this wealth.
The analysis revealed that the key to success had been an evolution of investment practices in tandem with market trends. Only 1% of the investments amongst the wealthy individuals surveyed, for instance, were deployed towards gold and other precious commodities, which is in line with the global dip in commodity prices in recent years.
Instead, the sectors that drew the most investment were financial services and technology. As the Kenyan economy has developed, an increasing number of private and public bodies have been in need of advisory and financial services, which has prompted a number of international firms to ramp up their activities in the country.
Similarly, the technology and telecommunications sector in the country is also on a growth streak, which is more or less consistent with trends in markets across Africa and the world. The digital services market in the country is expected to reach a value of more than $5 billion by 2022.
The financial services sector drew 17% of all investments, while technology and telecommunications drew 15%. Other sectors that drew substantial investment include retail, fashion, luxury goods, transport & logistics, fast moving consumer goods, and the media industry.