Kenyans own assets worth Sh10.5 trillion, new report shows

Kenya has been ranked as the 5th wealthiest county in Africa with individuals in the country holding assets amounting to Ksh 10.5 trillion (US&104 billion), according to the latest AfrAsia Bank Africa Wealth Report.

Based on figures for December 2017 by New World Wealth, South Africa tops the charts with US$722 billion, followed by Egypt (US$330 billion), Nigeria (US$253 billion) and Morocco (US$122 billion). Individuals in neighbouring Tanzania hold wealth amounting US$60 billion while those in Ethiopia hold US$60 billion. Cote d’Ivoire closes the top 10 ranks with US$46 billion.

According to the report, “total wealth” refers to the private wealth held by all the individuals living in each country, including expatriates. It includes all their assets (property, cash, equities, business interests) less any liabilities but excludes government funds.

The report says total wealth held in Kenya has risen by 73% over the past 10 years (2007 to 2017) and by 2% over the past year (2017).

Overall, total wealth held in Africa has risen by 13% over the past 10 years (2007 to 2017) and by 3% over the past year (2017). Mauritius was the top performing individual market during both of these periods.

Ethiopia also performed well, although it should be noted that it started from a very low base, which makes growth easier – average wealth in Ethiopia is currently at around US$700 per person which is still quite low despite recent growth.

Total private wealth held in Africa is expected to rise by 34% over the next 10 years, reaching US$3.1 trillion by the end of 2027.

“We expect Mauritius, Ghana, Rwanda and Uganda to be the strongest performing wealth markets in Africa during this period (90% to 150% growth rates). Our projections for Ethiopia, Mozambique, Zambia, Kenya, Botswana and Namibia are also relatively solid (50% to 80% growth rates). Our projections for South Africa, Angola, Morocco, Egypt, Ivory Coast, Tanzania and Nigeria are less
favourable, but still positive (10% to 30% growth rates),” says the report’s authors.

The report also provides a review of the 10 wealthiest cities in Africa by total wealth held with Nairobi being placed at position six. It says total wealth held in the city amounts to Ksh 5.4 trillion (US$54 billion). Major sectors in the city include financial services, real estate and construction, retail, tourism, Fast Moving Consumer Goods (FMCG), telecoms and basic materials.

Johannesburg (including Sandton) and Cape Town are the two top ranked cities in Africa with total wealth held by private individuals standing at US$276 billion and US$155 billion respectively.

With total private wealth standing at US$8 billion, Mombasa comes in at position 23.

According to the report, High Net Worth Individuals (HNWI) in Kenya spent Ksh 50 billion (US$0.5 billion) on  luxuries last year (same as 2016) placing the country at position two after South Africa where they spent US$2.2 billion (US$2.3 billion in 2016).

This figure includes luxury cars, luxury clothing & accessories, luxury watches, private jets, yachts and luxury hotels & lodges.

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. Major SA destinations for wealthy people include Kruger Park area, Cape Town, Umhlanga and Franschhoek.

Major destinations for them in the rest of Africa include: Mauritius, Seychelles, Marrakech in Morocco, Casablanca in Morocco, Cairo in Egypt, the Serengeti in Tanzania, Sharm El Sheikh in Egypt, the Masai Mara in Kenya, Livingstone in Zambia and the Okavango Swamps in Botswana. Gorilla safaris in the Virunga Mountains and the Bwindi Forest (Uganda) are also popular.

Popular hotels for wealthy people visiting Africa include La Mamounia in Morocco, the Four Seasons in Seychelles and the 12 Apostles Hotel & Spa in Cape Town.

Popular game lodges for them include: Ngorongoro Crater Lodge in Tanzania, the Royal Livingstone in Zambia, Cottar’s 1920s Safari Camp in Kenya and Singita in South Africa.