Kenya Adds 180 Individuals Worth KShs 0.5 Billion in Net Assets

Kenya’s population of individuals worth at least 500 million shillings in net assets rose to 1,290 in 2017, a 16.2 percent increase from 1,110 in 2016 according to data provided by Wealth-X for the Knight Frank Wealth Report 2018 which stated that out of the 1,290 individuals, 90 are worth 5 Billion Shillings more.

However, Kenya is said to have less than 10 individuals worth 50 billion shillings or more.

The number of Kenya’s dollar millionaires worth at least US$5 million is expected to grow by 60.5 percent over the next five years to 2,070 in 2022, which will be the second fastest growth in Africa behind Nigeria’s 74 percent to 6,500 individuals.

Africa had a total of 22,970 individuals in the US$5m+ wealth band in 2017, which was a 7 percent increase over 2016. The continent had a total of 1,190 individuals worth at least US$50 million, holding total wealth estimated at US$245 billion.

In Africa, South Africa has the highest number of individuals with assets valued at US$5 million or more, followed by Egypt with 4,180. Nigeria has 3,730 individuals in this wealth bracket, Tanzania 250, Zambia 140, while Uganda has less than 100.

According to The Wealth Report’s Attitudes Survey, 43 percent of respondents from Kenya said their clients’ wealth increased in the 12 months to December, with a similar percentage saying it decreased. 14 percent of the respondents said their clients’ wealth remained unchanged in 2017.

67 percent of respondents attributed the impact on their clients’ wealth in the year to political conditions, while 56 percent said local economic conditions impacted on wealth; 44 percent said the performance of their clients’ businesses impacted on their wealth, with a further 39 percent citing the performance of non-property investments.

The majority of wealth advisors in Kenya (81 percent) expect their clients’ wealth to increase in 2018, with only 5 percent anticipating a decline.

The increase in wealth is largely attributed to improved political and economic conditions in the country, as well as performance of property investments and high-net-worth-individuals’ (HNWIs) personal businesses.