This archive report was first published on 24 December 2019.
Kenya's super rich have a clear preference for land and property as their main investment vehicles, a new report by Standard Chartered Bank has revealed.
According to the survey, 28% of wealthy Kenyans prefer land, while 27% opt for property.
The report, which tracks investment plans of individuals with cash under management above Sh100 million, also found that wealthy Kenyans prefer establishing or funding their own business instead of investing in other people's businesses.
Kenya's real estate sector has been experiencing sluggish growth in sales and rental prices due to a huge stock of unsold units.
However, despite the sluggish prices in the property market over the last year, wealthy Kenyans' appetite for investing in property remains strong.
Experts say real estate prices have been less volatile compared to other investments and have also been useful as a hedge against inflation.
University of Nairobi economist Peter Muriu noted that real estate provided the highest returns, including construction and speculative buying of land.
The scramble for investors to cash in on land prices has pushed up prices in Kenya to one of the highest in Africa.
The Hass index shows land prices within the city have increased 638% since 2017, while satellite towns in Kiambu and Kajiado have witnessed a 894% price jump over the same period.
