ECONOMYSMART MONEY

Kenyans Who Swim in Money Even in Tough Economic Times

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A Bentley Showroom in the United Arab Emirates. Kenya has been ranked a top market for luxury goods. www.businesstoday.co.ke
A Bentley Showroom in the United Arab Emirates. Kenya has been ranked a top market for luxury goods. [Photo: Courtesy ]
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While most Kenyans are complaining of tough economic conditions, a small percentage of their fellow citizens are not feeling the pinch and have made luxury car dealerships a mainstay. Now Kenya ranked as the second-largest market for luxury goods in Africa.

The Africa Wealth Report 2019 authored by AfrAsia Bank ranks Kenya behind South Africa and ahead of Nigeria, Morocco and Egypt in the list of Africa’s top luxury markets.

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According to the report, Kenya’s luxury market revenue has grown twofold since 2008 from $300 million (Ksh31 billion) to $600 million (Ksh62.1 billion) in 2018. Porsche and Bentley have dealerships in Kenya with the former motors giant selling 2,000 cars in Africa per annum.

South Africa’s luxury market, on the other hand, has grown marginally during the period under review from USD2 billion to (Ksh207.1 billion).

Only South Africa, Egypt and Morocco beat Kenya in the purchase of luxury cars with Nairobi earmarked as a top market for Porsche and Bentley car brands.

Destinations, Hotels and Lodges

Despite Kenyan hotels being edged out by those in South Africa, Egypt and Morocco, Maasai Mara is ranked as one of the top 10 destinations in Africa.

Two Kenyan camps feature in AfrAsia’s list of the top seven-game lodges that generate the most revenue in the continent, South Africa is the only other economy to have two entries in the list.

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The list features Ngorongoro Crater Lodge in Tanzania, Cottar1920s Safari camp in Kenya, Sanctuary Gorilla Forest Camp in Uganda, Bateleur Camp in Kenya, Savanna Lodge in South Africa, Xaranna Tented Camp in Botswana and Ngala Tented Camp in South Africa.

AfrAsia Bank’s report also ranks Nairobi as one of the fastest growing cities in the world and projects that the Kenyan capital will feature in the “Big 5” African cities in the next few years.

“Nairobi is the economic hub of East Africa and one of the fastest-growing cities in the world. We expect Nairobi to break into the top five wealthiest cities in the world soon, possibly replacing Lagos, which has been slipping down the list of late,” reads the report.

See also: Simple Idea that Turns Money into Wealth

Johannesburg (South Africa), Cape Town (South Africa), Cairo (Egypt), Lagos (Nigeria), Durban & Umhlanga (South Africa) and Nairobi (Kenya) are the top five African cities by total wealth.

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