A Knight Frank survey reveals that more than 9,000 Kenyans have achieved millionaire status through stock market investments, with ultra-wealthy individuals allocating 25% of their portfolios to equities as of 2018.
The report details that Nairobi hosts 82 of Kenya's 30-million-dollar-plus net worth individuals, a number expected to rise to 102 within five years. Investment allocations show 22% in property, 20% in bonds, and 22% in cash equivalents, with minimal exposure to private equity (3%) and luxury assets (3%).
Key wealth generators in 2018 included financial services (17%), technology and telecoms (15%), and retail/luxury goods (11%). However, equity market performance declined sharply, with average returns dropping to -13.1% in 2018 from 31% in 2017 due to foreign investor exits and reduced regional market activity.
Pension schemes also faced challenges, posting 5.7% returns in 2018 compared to 17.9% in 2017, while offshore investments suffered from US-China trade tensions. The report notes that Kenya's political and economic climate in 2018 created greater wealth protection challenges than the previous year.
Regional stock exchanges showed mixed results, with Uganda's indices declining in February 2019 and Tanzania's market facing headwinds despite strong bank performances in 2018.
