Top 10 Areas Kenyan Billionaires Are Investing In

A new report has revealed areas that Kenyan billionaires are investing in. Even with the economy seemingly struggling, the report shows that high-net-worth individuals in the country are going ham on investing in local ventures.

In 2022, as energy prices and inflation rocked markets worldwide, many billionaires in Kenya moved to increase investment positions, with the proportion of those owning privately rented property rising from 44 percent to 70 percent, and those owning retail properties rising from 41 percent in 2021 to 70 percent in 2022.

Bonds are the leading investment attraction to Kenyan billionaires at 26 percent followed by commercial property (directly) at 25 percent. Equities come in third at 18 percent. Commercial property (indirectly) at 11 percent.

Other investment opportunities are; commercial property indirectly through REITS at 4 percent, private equity/venture capital at 5 percent, investment of passion (art, cars) at 3 percent, and gold and crypto at 1 percent each.

In terms of the portfolio balance, property, and bonds accounted for 66 percent of Kenyan billionaires’ holdings in 2022, while only 18 percent of their assets were held in stock market equities and just 5 percent in venture capital.

This contrasted with a global position, where HNWIs worldwide held an average of 26 percent of their assets in stock markets in 2022, and 9 percent in venture capital and private equity.

At the same time, Kenyan wealth managers reported that privately rented property, likewise, dominated their clients’ investment plans for the year ahead, with 60 percent planning to invest in private rentals, followed by 50 percent in retail.

“The attitudes survey revealed a sharp portfolio shift in Kenya and Africa towards domestic markets, during this time of global turmoil. Kenyan billionaires also tend to hold a far higher proportion of their wealth in property and bonds than the global average for billionaires. This is playing a critical role in social provision, funding government borrowing and driving the growth of low-cost housing schemes, rented homes, shops, food (through agricultural investments), healthcare and education development.” said the report by KnightFrank

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