Sixteen Kenyans dropped out of the ultra-rich list in 2020 as the Covid-19 pandemic disrupted businesses and hammered most asset classes across Africa.
The latest instalment of the Knight Frank Wealth Report places the number of Kenyans with a net worth of at least $30 million (Sh3.3 billion), including their primary residence, at 90 last year.
Their ranks shrank from 106 in 2019, but are expected to expand to 110 by 2025.
Africa’s rich have suffered the most from the economic impact of the pandemic, with 88 per cent of the continent’s wealthy who participated in the survey saying it remains their biggest worry in the short term.
Several local financial institutions participated in the survey, including insurance group ICEA Lion, NCBA Bank Kenya #ticker:NCBA and Stanbic Bank Kenya.
The shifts emerged in a year of hard economic times in the country in the wake of Covid-19, which resulted in a drop in corporate profits, and triggered job cuts and dividends freeze in firms owned by the wealthy.
The pandemic last year also saw the bear run on the Nairobi Securities Exchange intensify, lowered property prices and valuation of private companies as lockdowns and other restrictions eroded revenues.
The NSE All Share Index had shed 9.28 per cent between the beginning of January and December 30, while the blue chip NSE 20 share Index was down by 30.19 per cent. As a result, the market capitalisation of the bourse—the measure of investor wealth—fell by Sh220 billion in the period.
But Kenya had the fourth highest concentration of wealthy persons with a net worth in excess of Sh3 billion in Africa among the countries captured by the Wealth Report.
Nigeria led the pack with 867 ultra-rich persons followed by South Africa (742) and Egypt (583).
The Knight Frank report does not name individuals but other wealth reports have in the past singled out the families of former presidents Jomo Kenyatta and Daniel arap Moi and the late Cabinet minister Nicholas Biwott among Kenya’s wealthiest.Business tycoons who have appeared in past wealth reports include Vimal Shah, Chris Kirubi and Manu Chandaria.Previous wealth reports on Kenya have shown strong linkages between politics and wealth accumulation.Mr Kirubi is among the top investors who recorded substantial paper losses at the Nairobi bourse last year.The market value of his 30 per cent stake in Centum Investment Company Plc declined by nearly Sh2 billion. The stake is currently worth Sh3.4 billion, with the businessman recently buying […]