NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight Frank says.
According to the Wealth Report Attitudes Survey 2020, two-thirds of the wealth managers surveyed in Kenya report that their High Net Worth and Ultra High Net Worth clients increased their private equity investments in 2019, or plan to increase them soon.
The report found that the biggest increases in investments in the last one year were in equity investments through the stock market and in private equity investments to drive the growth of young businesses.
The super wealthy are also holding onto their investments in property and collectibles, such as works of art.
The report also found an exceptional rise in interest in action on climate change, with all surveyed wealth managers reporting that their clients were now more interested in climate change as a cause.
This extended to their consumption, with wealth managers reporting that 27 percent of Kenya’s richest people would now prefer a hybrid or electric car over a traditional oil-fueled vehicle and that 47 percent are working actively to reduce their carbon footprint.
What keeps the wealthy awake at night?
The country’s ultra-rich individuals are most worried about the impact of global economic uncertainty, followed by poor governance and Brexit.
As such, 91 percent of wealthy Kenyans reported they were actively changing their investment strategies.
Additionally, two-thirds of the wealthy investors reported to have reduced their holdings of now volatile cryptocurrencies.
“All the results of The Wealth Report Attitudes Survey 2020 for Kenya point to a sharp rise in social and environmental awareness by the country’s wealthy and super-wealthy, reflected almost immediately in their investment strategies and behaviors,” Ben Woodhams, Managing Director Knight Frank Kenya said.
Overall, Kenya has 42 ultra-high net worth individuals, worth over Sh3 billion each. The country is ranked fourth after Morocco with 215, Nigeria with 724 and South Africa which leads with 1,033 individuals.