Kenya’s rich barely engage in luxury spending - report
Rather than splurging on high-end goods and extravagant experiences, the country's rich are prioritising financial growth.
Going against the common perception that the wealthy indulge much in lavish lifestyles, Kenya's affluent are increasingly shunning luxury spending in favour of more wealth-building investments.
According to the latest edition of Kenya’s wealth report by real estate consultancy Knight Frank, rather than splurging on high-end goods and extravagant experiences, the country's rich are prioritising financial growth.
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“The allocation of investment portfolios to luxury assets among High Net Worth Individuals (HNWIs) in Kenya remains relatively modest,” the report reads.
For the one year ending December 2024, the consultancy says the majority of respondents indicated that their clients allocated less than 10 per cent of their wealth to luxury investments such as cars, watches and fine wine.
Notably, it adds that none of the respondents reported any clients dedicating more than 80 per cent of their portfolios to such assets, highlighting a measured approach to luxury spending.
Instead, Kenya’s affluent predominantly prioritise investments in real estate and personal businesses.
“The preference for tangible and appreciating assets underscores a long-term wealth preservation strategy, with property ownership and entrepreneurial ventures often regarded as more secure and profitable.”
The findings challenge the long-held stereotype of conspicuous consumption among the rich, painting a picture of a more pragmatic and future-focused elite.
Economic uncertainty
According to Knight Frank, the trend is due to economic uncertainty, shifting cultural values, and a growing appetite for long-term financial security.
“Kenyan investors typically allocate capital across various asset classes to mitigate economic uncertainties and enhance financial resilience,” it says.
“Cultural and economic considerations also play a role in shaping investment behaviours. Many Kenyan HNWIs adhere to principles of financial prudence, focusing on assets that contribute to long-term financial security and legacy building.”
In regard to investments of passion, Art continues to dominate as the most sought-after investment of passion among Kenyan HNWIs.
In the period under review, 72 per cent of the respondents expressed interest in acquiring art, reflecting a sustained enthusiasm for the asset class.
Classic cars followed closely at 50 per cent, while jewellery and high-end furniture both garnered interest from 44 per cent of HNWIs.
Other top passion investments include classic cars, which remain a coveted asset, valued not only as an investment but also as a symbol of prestige.
“Both jewellery and high-end furniture also continue to attract investors seeking both aesthetic pleasure and financial returns. Rare, high-quality pieces, particularly those with historical significance or fine craftsmanship, have demonstrated the potential for appreciation over time,” the report adds in part.
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