Here’s where Kenya’s super-wealthy invest their money

Here’s where Kenya’s super-wealthy invest their money

March 12, 2020 0 By mykenyancareers
super wealthy - Here’s where Kenya’s super-wealthy invest their money
The super-wealthy are also holding onto their investments in property and collectibles, such as works of art/COURTESY

NAIROBI,
Kenya, Mar 12 – The country’s super wealthy individuals are increasing their
holding of bonds, gold and cash, a new report by Knight Frank says.

According
to the Wealth Report Attitudes
Survey 2020, two-thirds
of the wealth managers surveyed in Kenya report that their High Net Worth and
Ultra High Net Worth clients increased their private equity investments in
2019, or plan to increase them soon.

The
report found that the biggest increases in investments in the last one year were
in equity investments through the stock market and in private equity
investments to drive the growth of young businesses.

The
super wealthy are also holding onto their investments in property and
collectibles, such as works of art.

Electric
cars

The report
also found an exceptional rise in interest in action on climate change, with
all surveyed wealth managers reporting that their clients were now more
interested in climate change as a cause.

This
extended to their consumption, with wealth managers reporting that 27 percent
of Kenya’s richest people would now prefer a hybrid or electric car over a
traditional oil-fueled vehicle and that 47 percent are working actively to
reduce their carbon footprint.

What
keeps the wealthy awake at night?

The
country’s ultra-rich individuals are most worried about the impact of global
economic uncertainty, followed by poor governance and Brexit.

As
such, 91 percent of wealthy Kenyans reported they were actively changing their
investment strategies.

Additionally,
two-thirds of the wealthy investors reported to have reduced their holdings of
now volatile cryptocurrencies.

“All the
results of The Wealth Report Attitudes Survey 2020 for Kenya point to a sharp
rise in social and environmental awareness by the country’s wealthy and
super-wealthy, reflected almost immediately in their investment strategies and behaviors,”
Ben Woodhams, Managing Director Knight Frank Kenya said.

Overall,
Kenya has 42 ultra-high net worth individuals, worth over Sh3
billion each. The country is ranked fourth after Morocco with 215, Nigeria with
724 and South Africa which leads with 1,033 individuals.