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In the face of escalating global economic uncertainties, Kenya’s high-net-worth individuals (HNWIs) are strategically realigning their investment portfolios, favoring domestic, liquid, and high-yielding assets over traditional foreign and residential holdings.

This shift underscores a growing confidence in local markets and a desire for investments that offer both resilience and growth potential.

Embracing Domestic Opportunities

Recent analyses indicate a marked decline in foreign property ownership among Kenyan HNWIs, with only about 10% owning homes abroad in 2024, down from 14% in 2023.

This trend reflects a broader pivot towards domestic investments, driven by factors such as favorable returns and a stable local economic environment. Notably, 66% of HNWIs now prioritize Kenya as their primary investment destination, a significant increase from 33% the previous year.

Diversification into Emerging Sectors

The investment landscape is witnessing a diversification beyond traditional assets. HNWIs are increasingly channeling funds into sectors like agriculture, technology, and renewable energy.

Farmland investments have surged, with 77.5% of wealthy individuals investing in this sector, while 69.4% have turned to the hospitality and leisure industry.

Additionally, there is a growing interest in private rented residential properties, student housing, and healthcare facilities, reflecting a strategic focus on sectors with robust growth prospects.

Sustainable and Passion-Driven Investments

Environmental sustainability has become a central theme in investment decisions. Approximately 60% of HNWIs are now investing in renewable energy sources, and nearly half are seeking properties with green certifications and energy efficiency ratings.

This shift not only aligns with global sustainability goals but also enhances the long-term value of their investments.

Moreover, investments of passion are gaining prominence. Art has emerged as a favored asset class, with over 70% of HNWIs expressing interest, surpassing traditional collectibles like classic cars. This trend mirrors global patterns, where art has demonstrated resilience and strong returns, even amid economic fluctuations.

Cautious Optimism Amidst Economic Headwinds

Despite a slowdown in wealth growth, with over 60% of wealth managers reporting less than a 10% increase in HNWI numbers from 2024 to 2025, there remains a cautious optimism.

Nearly half of the respondents anticipate a marginal increase in wealth in 2025, while 26% expect gains exceeding 10%. This outlook is bolstered by strategic investments in resilient sectors and a focus on sustainable, long-term growth.

Kenya’s affluent investors strategic shift towards diversified, sustainable, and locally anchored investments positions them to not only preserve but also enhance their wealth in the evolving economic landscape.