KENYA HAS 42 BILLIONAIRES, SOUTH AFRICA 1,033 - REPORT

By Staff Reporter, Nairobi KENYA

Kenya has been ranked fourth in Africa with individuals worth over 30 million US dollars.

This translates to Sh3 billion.

According to Knight Frank's global wealth report, 42 individuals in the country have a net worth over Sh3 billion.

South Africa is leading the continent with 1,033 such individuals followed by Nigeria 724 and Morocco 215.

The report notes that Kenya's wealthiest are generating a new league of angel investors showing a surge in direct investments into new and growing businesses.

Two thirds of the wealth managers surveyed in Kenya reported that their high net worth and ultra-high net worth clients increased their private equity investments in 2019.

This jump in investment to support the growth of Kenya’s innovative young businesses came as more than two-thirds of the country’s wealthy also reported an increase in their interest in philanthropic activities, and in ethical investments.

The biggest increases in investments were in equity investments through the stock market.

“The survey points a sharp rise in social and environmental awareness by the country’s wealthy as reflected in their investment strategies and behaviours,” Managing director Ben Woodhams said.

The shift coincided with a general move in investments towards lower risk holdings, with Kenya’s wealthy increasing their holdings of bonds, gold and cash.

Managers reported the wealthy were most worried about the impact of global economic uncertainty, followed by poor governance, and Brexit.

As a result, two-thirds of the wealthy investors had reduced their holdings of now volatile cryptocurrencies, while holding their investments broadly static in property and collectibles, such as works of art.

The wealthy also indicated an exceptional rise in interest in action on climate change as a cause.

The surge in philanthropic interest by Kenya’s wealthy marked a stronger rise than in South Africa but ties with a growing trend across Africa’s super rich ‘giving back’ by driving development and improved welfare in their own nations.