Kenya dollar millionaires rose to 3,362 million last year on the back of young entrepreneurs making fortunes in sectors such as ICT and business recovery from the Covid-19 economic fallout.
The latest instalment of the Knight Frank Wealth Report shows the number of Kenyans with a net worth of at least $1 million (Sh113.9 million) grew by 39 last year from 3,323 in 2020 and is expected to hit 4,274 by 2026.
This points to recovery from the effects of Covid-19 that hammered most asset classes and prompted business closures, drops in corporate profits and dividends freeze in firms owned by the wealthy.
Twenty-seven percent of the dollar millionaires or 803 of them are self-made and aged under 40, indicating new opportunities for young people in a country where the lucky few have previously relied on inherited wealth to join the club of the super-rich.
The dollar millionaires dropped from 4,235 in 2019, underlying the economic impact of the pandemic.
The number of ultra-rich Kenyans with a net worth higher than $30 million (Sh3.4 billion) fell by two to 88 last year, reflecting the difficulty of adding wealth in this segment compared to the lower threshold of $1 million.
The net worth includes the tycoons’ primary residence, but excludes liabilities like bank loans, locking out heavily indebted individuals from the rich list.
“The entrepreneurship of Kenyan wealth creators and individuals actually helped during the pandemic, although we did see the ultra-high-net-worth group drop slightly because it is more difficult get into the $30 million bracket than it is to get into the $1 million bracket,” said Andrew Shirley, the editor of the wealth report.
“Taking into account those aged under 40 who have created their own wealth rather than inherited it…the level of entrepreneurial wealth is higher in Kenya than the global average of 22 percent, especially when you consider the wealth is being created in sectors such as in technology, metaverse and blockchain.”
There is a growing number of young millionaires and entrepreneurs who are making money in Kenya’s technology sector, especially fintechs, with their key focus ranging from digital payments, loans and insurance to share trading and cryptocurrency.
They are also offering digital solutions in agribusiness, health and logistics, helping establish Kenya as East Africa’s hi-tech hub.These firms have in turn attracted billions in funding from venture capital and private equity funds from developed countries, with the founders raking in millions from stake sales.Data from Disrupt Africa […]