The Kenyan luxury market generated a $600 billion (Sh62 billion) revenue last year boosted by hotels and safari lodges, a new wealth report shows.
This saw Kenya retain its position as the second-largest luxury market in Africa, with the sector raking in $6.1 billion (Sh631 billion) revenue for the continent over the period, according to the Africa 2018 Wealth Report that profiled 17 countries.
South Africa topped Africa’s luxury market, generating $2.1 billion (Sh217.6 billion) followed by Kenya, Nigeria, Morocco and Egypt respectively. “A large portion of luxury sector revenue in Africa comes from luxury hotels and lodges. South Africa is the main luxury tourist destination in Africa,” said the report compiled in partnership with Mauritius-based AfrAsia Bank.
The Maasai Mara National Reserve was named among Africa’s top destinations for the rich alongside Cape Town, the Serengeti in Tanzania, Marrakesh in Morocco, Cairo in Egypt and the Okavango Swamps in Botswana.
Cottar’s 1920s Safari Camp and Bateleur Camp in Kenya were also listed among Africa’s top lodges for the wealthy alongside Ngorongoro Crater Lodge in Tanzania and Sanctuary Gorilla Forest in Uganda.
Porsche, which has a presence in Kenya, was Africa’s top-selling luxury car. The report says Porsche sells about 2,000 cars in Africa annually with 1,300 being sold in South Africa. Luxury British car brand Bentley, which launched in Kenya in 2017, was the third top-selling luxury car after Ferrari. According to the report, Kenya’s luxury market has grown by 100 per cent over the last decade.
Nairobi edged closer to the top five wealthiest cities in Africa, ranking sixth with a total wealth of $49 billion (Sh5 trillion). “We expect Nairobi to break into the top five wealthiest cities in Africa soon, possibly replacing Lagos, which has been slipping down the list of late,” said the report.
Total wealth refers to all the wealth held by private individuals. Johannesburg topped the list with a total wealth of $248 billion (Sh25.7 trillion). Nairobi was ranked as a prime market for real estate, with the price per square metre in the capital estimated at $1800 (Sh186,840).
The most affluent parts of Nairobi were listed as Runda, Lavington, Kitisuru, Karen and Muthaiga. The number of dollar millionaires in the country was put at 8,600 and those with above Sh100 million at 340.
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