Wealthy Kenyans are retreating from real estate, with only 22% investing in residential property — down from over 50% last year — as they shift to more liquid income-generating assets, the 2025 Kenya Wealth Report by Knight Frank shows.
- •The findings mark a notable departure from traditional investment preferences among the country’s affluent individuals, who have long favored brick-and-mortar assets for their inherent stability.
- •Economic headwinds from 2024’s tax-driven unrest and a slowdown in GDP growth to 4% have led many investors to take a more cautious approach.
- •Rising land and construction costs, coupled with low mortgage penetration have also made real estate a less attractive prospect.
“This trend aligns with broader market analyses from leading financial institutions, indicating that investors are recalibrating their portfolios to adapt to economic uncertainties and shifting return profiles,” Knight Frank notes the report.
Wealthy Kenyans are now favoring financial instruments like treasury bonds, money market funds, and shares in real estate investment trusts (REITs), which offer easier exits and more stable returns. Other emerging preferences include technology, agriculture, and renewable energy sectors, which are perceived as more responsive to current market dynamics.
About 53% of High Net-Worth Individuals plan to purchase a new home this year. This is lower than the 61% of these individuals who purchased a home in 2024. Many wealthy Kenyans who own multiple residences are using them primarily for personal enjoyment rather than as rental income streams.
Kenya is Still a Top Investment Choice
Kenya remains the top choice for high-net-worth individuals (HNWIs) buying homes, with 66% preferring it—up from 33% last year—driven by confidence in the local economy and national pride. The U.S. and U.K. follow as favored international options, valued for their stability, legal clarity, and established property markets.
While domestic investment is strong, many wealthy Kenyans still look abroad to diversify and shield their assets from local volatility. Over 50% of wealth managers said that fewer than 10% of their clients invested in commercial property in 2024. Investor caution is being driven by an oversupply of office space, rising vacancy rates, and inflationary pressures that have constrained disposable income and reduced development appetite. The majority of commercial investments (39%) remain under US$5 million, suggesting limited capital deployment and a conservative stance among investors.
While inherited wealth remains significant, with 28% of wealth managers indicating it accounts for 30–40% of client assets; self-made wealth is increasingly prominent. Entrepreneurial ventures and portfolio diversification are contributing to a new generation of wealth holders less anchored to legacy assets like land and family property.
Kenya’s economic slowdown, fiscal instability, and social unrest in 2024 impacted rapid capital growth and contributed to modest HNWI population growth of less than 10%. Only 6% of wealth managers oversaw ultra-high-net-worth portfolios (over US$ 1 billion).
A significant share (28%) of wealth managers in Kenya oversee portfolios below US$ 5 million, reflecting the growing presence of emerging affluent and middle-class clients. Meanwhile, 17% of respondents manage portfolios between US$ 21 million and US$ 50 million, representing more mature high-net-worth individuals (HNWIs) who require sophisticated financial strategies.
Passion investments, while still a niche within Kenyan wealth portfolios, are gaining steady traction, particularly in the art market. According to the report, 72% of high-net-worth individuals expressed interest in acquiring art, making it the most popular asset of passion. Classic cars followed at 50%, while jewellery and high-end furniture each attracted 44% of respondents.
Despite this growing enthusiasm, luxury assets account for less than 10% of overall portfolio allocations, reflecting a disciplined approach to wealth management. The appeal of these assets lies not only in their potential for appreciation but also in their cultural significance, personal enjoyment, and the prestige they confer. Collecting fine art and rare items has become a way for Kenya’s wealthy to diversify their portfolios while aligning with global trends in lifestyle-driven investment.
