Kenya's ultra-rich no match for African peers
SEE ALSO :Tour vehicles customisation comes of ageSouth Africa, which is ranked as the wealthiest country in Africa with a total wealth of $659 billion has five dollar billionaires while Egypt though ranked second wealthiest has more dollar billionaires at six. These are followed by Nigeria (four) and Morocco (three). Angola and Tanzania, both ranked lower than Kenya in the list of wealthiest African countries, but each have one dollar billionaire. “The ‘Big 5’ wealth markets in Africa are South Africa, Egypt, Nigeria, Morocco and Kenya,” said the report. According to the September 2019 report, there are 23 Africans with assets valued at over Sh100 billion. Though higher in other parts of the world, they are not necessarily many, with the report putting the total number at slightly over 2,000. “There are 23 billionaires living in Africa, each with net assets of $1 billion or more… there are 2,140 billionaires in the world, each with net assets of $1 billion or more,” said the report.
SEE ALSO :Seed firm opens office in NarokAccording to the report, Nairobi did not make it to the top five richest cities in Africa but was instead ranked sixth, with a wealth of $49 billion. South Africa’s Johannesburg is the wealthiest city in Africa, where the total wealth held in the city is $248 billion, much of it in Sandton. Other top rated cities were Cape Town ($133 billion), Cairo ($129 billion), Lagos ($96 billion) and Durban ($54 billion). “The economic hub of East Africa is one of the fastest-growing cities in the world. Total wealth held in the city amounts to $49 billion. Affluent parts of Nairobi include Runda Estate, Lavington, Kitisuru, Karen and Muthaiga. Major industries there include financial services, real estate, tourism, media, clothing, textiles, processed foods, beverages and cigarettes,” said the AfrAsia report. A recent Wealth Report by Knight Frank, which put the number of Kenyan with assets worth over $1 million (Sh100 million) at 9,482 in 2018, also noted that Kenyan high net worth individuals prefer putting money in real estate. According to the March 2019, the property makes up 43 per cent of Kenyan high-net-worth-individuals’ investment portfolios, which is higher than the preference of other rich people in other African countries where 39 per cent prefer investments in property. The majority of Kenya’s super-rich (59 per cent) have invested in real estate in the country, while 27 per cent holds property interests outside the country, according to the Attitudes Survey insights.
SEE ALSO :Why the NSE bell is no longer chimingRespondents to the survey said 42 per cent of their Kenyan clients increased their exposure to property investments in 2017, further indicating confidence in the asset class. The Knight Frank Wealth Report further reveals that affluent Kenyans own an average of 1.9 homes (primary residences and second homes not bought as investments), which is lower than Africa’s and global averages of 2.1 and 2.9 homes for the super-rich respectively. However, 16 per cent of Kenya’s wealthy plan to buy additional homes within the country in 2018, while only 8 per cent is looking to purchase abroad. Buyers with $1 million to spend on high-end homes can purchase a luxury residential property with 6,383 square feet of space in Nairobi, making the city one of the cheapest locations for prime residential buyers. Monaco is the most expensive location globally, with a million dollars affording just 173 square feet.
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