A new report shows the number of the super-rich in Tanzania far supersedes that of Kenya, which enjoys superior economic standards measured by Gross Domestic Product (GDP).
A recent wealth report by Knight Frank shows the tally of Tanzania’s super-rich stood at 5 668 at the end of 2019 compared to Kenya’s 2 942.
This includes 5 553 who are dollar millionaires — worth Sh100 million and above, another 114 billionaires, worth Sh3 billion and above and one that is worth over Sh100 billion.
Kenya has 2 900 dollar millionaires, 42 individuals worth US$30 million and above and none in the category of dollar-billionaire, according to the 2020 Wealth Report by property management firm Knight Frank.
Even as Tanzania has churned out more millionaires, Nairobi has continued to stretch its lead as the region’s largest economy with the latest data from the International Monetary Fund (IMF).
With a per capita income of $957 (Sh90 570) as of 2018, Tanzania is classified by the World Bank as a poor country. However, Kenya with a per capita income of $1 202 (Sh120 200) is categorised as low middle-income country.
Uganda has 137 individuals worth over Sh100 million, five who are worth Sh3 billion and above and no one worth Sh100 billion.
Kenya, which has had a perfect run growing its dollar-millionaires (those worth Sh100 million and above) by 263 percent in five years from 2014, however, experienced a slowdown last year.
A tough economic environment saw six Kenyans drop out of the billionaires club (those with assets valued at Sh3 billion and above), the report showed.
High net worth individuals — those worth Sh100 million and above also reduced during this period by 499 from 3 399 in 2018.
Knight Frank Kenya managing director Ben Woodhams attributed the fall in the wealth value to the tough economic climate witnessed in 2019.“The economic downturn saw their assets lose value and consequently fall out of those categories,” he told Sunday Standard after the release of the wealth report in Nairobi last week.The biggest increases in investments for the super-wealthy were in equity investments through the stock market and in private equity investments.Forays into KenyaIn 2019, the benchmark index for the 20 best performing counters at the Nairobi Securities Exchange, dropped by 6,3 percent compared to the previous year perhaps explaining where some of them lost their wealth.Tanzanian billionaires have been making forays into Kenya. In 2018, Tanzanian billionaires Aunali and Sajjad Rajabali were […]
