According to this Year’s Wealth Report by Knight Frank, Kenya is home to the world’s fourth fastest-growing population of ultra-wealthy individuals (UHNWIs) growing at a rate of 93% in the last ten years behind China at 281%, India at 290% and Vietnam at 320%.
The report compiles and analyzes data related to Ultra High Net Worth Individuals (UHNWI), or those whose net worth exceeds US$30 million excluding their primary residence while HNWIs, or high-net-worth individuals, are considered those with a net worth of over US$1 million, excluding their primary residence.
Between 2006 and 2016, Kenya’s number of UHNWIs (Ultra High Net Worth Individuals) grew by 93 per cent to reach 120 and is predicted to reach 216 by the end of the next decade; this would be a growth of 80 percent – the fourth largest increase in all the countries assessed. This would put Kenya ahead of Australia at 70%, Russia at 60% and other countries as shown in the infographic below.
Kenya Will Create 7,500 new millionaires (HNWIs) in the Next Decade
Kenya added 900 individuals to the elite class of dollar millionaires in 2016, raising the tally of HNWIs – those worth US$1 million (Sh102 million) or more in assets to 9,400 people from 8,500 in 2015. Of these, 30 individuals joined the ranks of those worth US$10m+ (Sh1.02bn+), 10 joined the ultra-high-net-worth pool of those worth US$30m+ (Sh3.06bn+), while two individuals became centa-dollar-millionaires worth US$100m+ (Sh10.2bn+).
The report further indicates that 7,500 new millionaires will be created in Kenya over the next decade.
The results of The Wealth Report Attitudes Survey, which this year is based on responses from almost 900 of the world’s leading private bankers and wealth managers, offer an annual window on the issues that are influencing UHNWI investment and lifestyle decisions.
The Wealth managers said 22% of their Kenyan HNW clients use private aviation for the majority of their business or personal travel, a higher percentage compared to the 15% global average and 17% Africa average. However, the number of private jets in Kenya is estimated at nine, relatively unchanged over the last 10 years. Currently, fractional-ownership of private jets (at 3%) is the most common mode of possession, followed by full-ownership at 2%, while usage of chartered jets stands at 1%.
“On average, the growth in ultra-wealthy populations in Africa is 33% and Latin America (37%) will also outpace that in Europe and North America. In Africa, sharp rises are expected in countries such as Mauritius, Ethiopia, Tanzania, Uganda, Kenya and Rwanda. In fact, of the 20 countries whose ultra-wealthy populations have grown most rapidly over the last decade, 11 are in Africa.” said the report.